Air NZ decision disappointing
Published on 30 May 2016
30 May 2016
Mayor Annette Main says the Whanganui District Council put forward a strong argument against today’s announcement by Air New Zealand that they will withdraw services from Whanganui Airport.
“We have heard today that our approaches haven’t been accepted by Air New Zealand and they are going ahead with their plans to cut the Whanganui to Auckland service,” Mayor Main said.
“We understand that this is purely a business decision by Air New Zealand but the impact is enormous on our reputation as a commercial base with an enviable lifestyle and on our ability to bring in outside income.
“Amongst other things, our concerns were around the impact of this decision on the work we are doing to grow our economy and therefore jobs for our community, as well as the impact on our businesses which are working nationally and internationally with clients. They rely on the direct connection between Whanganui and Auckland. The loss of this service would reduce our ability to attract new business to our district and possibly to retain existing businesses.
“There are also people who work in Auckland but choose to live in Whanganui for our lifestyle and those who rely on the air service to make connections with family and friends. Direct flights between Whanganui and Auckland’s international gateway are key to tourism and business opportunities.
“We asked Air New Zealand to delay its decision for 12 months to give us an opportunity to prove that the service can be viable. We argued that the decision was premature due to the short period of time since the introduction of the 50-seater flights. However, that request has been denied.
“We are fortunate that Air Chathams has now approached us and said that, immediately the Air New Zealand service ends, they are able to provide the same scheduled daily Whanganui-Auckland flights with their 19-seater Metroliner.
"It is encouraging to know that there is a player in the market who recognises the importance of provincial connections with our main international gateway and believes that providing that service is a sound business decision.
"While we are extremely disappointed with Air New Zealand's decision, we look forward to working with Air Chathams who have a reputation for providing a reliable and efficient service that meets the needs of the community in which they operate.
“I appreciate the support we have received from Whanganui MP Chester Borrows, government ministers and staff who share our concerns about the cancellation of the Air New Zealand service.
“We look forward to welcoming Air Chathams to Whanganui Airport and encourage our community to support the services they will provide.
“It may be that other operators are interested in talking to us about what they can offer, and we welcome those discussions.”
Air Chathams' briefing sheet about their Whanganui service (PDF, 84KB)
Below is an open letter from Mayor Annette Main to Air New Zealand.
28 May 2016
Mr Ian Collier
Regional Affairs Manager
Air New Zealand
Dear Ian
Thank-you for your letter received by email this afternoon which confirms your company’s plan to withdraw air services from Whanganui.
I fully understand that this is a business decision made by Air New Zealand, however being the ‘sacrificial lamb’ due to increased competition in Palmerston North is not a situation which will sit at all comfortably with our community.
While you may believe this will assist you to compete more effectively in Palmerston North by forcing our community of 45,000 and those in the surrounding districts of Ruapehu and South Taranaki to travel to Palmerston North to use air services, this decision comes with a huge cost to our community. That cost is both social and economic and undermines everything this community has successfully done to reverse our declining statistics.
We worked alongside Air New Zealand during the earlier withdrawal of services to Wellington, acknowledging this was a route difficult to make profitable, however this withdrawal of service is a different matter.
This decision is premature.
Earlier this year we were asked to promote the additional capacity provided by the introduction of the Q300, but within a matter of weeks we were then asked to support the temporary reintroduction of the 19 seat flights due to issues your airline was experiencing with the supply of Q300’s. We still have only 19 seat flights.
This combined with frequent delays in departures and arrivals has caused much customer frustration and has made it impossible for us to credibly work alongside you to promote the promised additional capacity. However we continued to support your plans and encourage our community to use the services from Whanganui in spite of the challenges placed in our path.
One of these was an aggressive direct marketing campaign into Whanganui by Palmerston Airport.
We believe that a concerted local campaign to fill our flights would be successful provided your airline reintroduces the Q300 as soon as possible. Only then will we be able to assess the longer term sustainability of these services.
We ask you to consider delaying your decision for twelve months for the following reasons to enable us to prove their viability.
After many years of static growth Whanganui has changed its reputation and has entered a time of positive growth and confidence. The connection with Auckland your company provides is important to our current projects to grow business, population, and production. Our businesses are working nationally and internationally with their clients and much of that business is done in Auckland. The availability of daily flights from Auckland is critical to the decisions made to do business with our local companies. To add a further two hours plus by forcing these flights to be taken via Palmerston North will restrict our ability to work efficiently with our business clients. The consequence of this will clearly be reduced ability to influence business into our district.
We have invested considerable funds in our airport to provide a safe, efficient and professional arrival and departure point for your customers. This airport is a joint venture between the Crown and our community and the impact of your decision on this investment and potentially its future should be an important consideration.
Our government has produced a Regional Growth Study for the Manawatu Whanganui region, with the announcement of resulting projects due early August.
One of the projects which are being developed from the study will increase the flow of visitors to the wider Tongariro, Ruapehu and Whanganui district, spreading the wealth generated by increased tourism to the regions. Direct flights to Whanganui from the international gateway at Auckland are a key factor in the success of this project.
Others are around business based in our port area, increased production on hill country land, manuka honey, and the provision of services for an aging population. All have outcomes which provide for growth in business and population. All have direct flights by our national carrier as a credibility factor.
We know that these flights are important to the selection of Whanganui by those considering a move to the regions from Auckland. The retention of an easy connection back to friends, family and business connections is cited as a key factor in this decision making. Taking this away will severely impact on our ability to attract more new citizens at a time when we have seen increased interest due to the attractiveness of our community and its assets.
Whanganui has recently purchased a successful domestic and international pilot training academy and we are currently approving the investment of significant capital into the relocation of this to Whanganui Airport. The location at our airport is attractive to international students and to their parents and the availability of flights by our national airline is seen as an advantage when making the decision about where to undertake professional pilot training. A Government funded international education strategy has this academy as critical to the growth of international students for our district.
Whanganui Iwi has the settlement of the Whanganui River claim currently in Parliament and due for final settlement later this year. This combined with previously settled claims with surrounding iwi Ngati Apa and Nga Rauru brings a substantial boost to our economy with the resulting investment in jobs and therefore community wealth.
These factors represent opportunities for both our community and your airline. Opportunities which need time to mature. The loss of direct services to Auckland on our national carrier at this time will have a severe impact on our ability to leverage these opportunities.
Hence our request, taking in all the factors impacted by this decision, the aspirations for growth in place by Government and our region, our community’s plans for social and economic wealth, please don’t be a limiting factor in our success right at this critical time.
Give us one year, Air New Zealand.
Regards
Annette Main
Mayor Whanganui