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Otago Daily Times
19 hours ago
- Business
- Otago Daily Times
Loss of flights another blow for Wānaka patients
Photo: Sounds Air Travel and Tourism Limited The loss of two popular regional flights is a blow to tourism and people needing treatment at Christchurch Hospital. Sounds Air will stop its flights from Blenheim to Christchurch and Christchurch to Wānaka from the end of September due to what has been described as 'out of control' costs. Are you affected by the loss of flights between Wānaka and Christchurch? Email reporters@ Sounds Air managing director Andrew Crawford said the airline was flying more passengers than ever but could not keep up with the costs that have remained high since the pandemic, engineer shortages and the weak New Zealand dollar. Sounds Air said it was going back to basics, canning the two routes, selling five smaller aircraft, and expanding its Cessna Caravan fleet for Cook Strait services. Ten staff will lose their jobs. That was after cancelling its services from Wellington to Taupō and Wellington to Westport last December and selling an aircraft. The Minister for the South Island and Associate Minister for Transport, James Meager, told RNZhe had spoken with Andrew Crawford recently to reassure him the issue was a high priority. But Crawford said they had reached out to the government numerous times to no avail, and passing the buck on to customers to cover costs was not an option. The airline's fares had gone up by more than 20 percent since Covid - they could go up another 20 percent and it would still not be enough to cover its costs, he said. Marlborough Mayor Nadine Taylor said the council had raised the issue with government, and was told market forces would take care of it. It was gutting for the region as the Blenheim-Christchurch route was a critical part of the region's economic recovery, she said. "I am frustrated that Sounds Air was unsuccessful in securing support from central government as regional connectivity is also important for economic growth, particularly tourism," she said. "There is often talk of the regions being our country's powerhouses - to be that we need infrastructure, services, and connectivity." Christchurch Hospital provided a lot of primary care for cancer patients, and Taylor had already been contacted by some of the patients who regularly used the service. "They're just sort of saying 'it's just such a devastating loss for them'. They're back to four or five hours on the road. They need family to transport them and take them rather than just dropping them at the airport," she said. Wānaka local and Queenstown Lakes Deputy Mayor Quentin Smith was disappointed the service was being cut. So instead of being able to take a short flight that was less than an hour, it meant an hours-long drive. "The alternative of either driving, which is about five-and-a-half hours each way or going to Queenstown, where you've got to drive over an hour each way plus you've got to be there a lot earlier for your flights than you do for Sounds Air," he said. His daughter used the service a few weeks ago, and he said it was well used by travellers for business, holidays and appointments. It also presented a problem for healthcare, especially for people coming from Wānaka or Blenheim who need to travel to Christchurch Hospital for treatment. "Healthcare, I think, is a big one because people will fly up to Christchurch and back for a specialist appointment ... we know that access to healthcare out of Wānaka is particularly challenging so that's an issue that concerns me," Smith said. Smith remembered when Air New Zealand used to fly the same route before the service was cut more than a decade ago. "There's been a bit of a history of the offering and loss of this type of service. We've just got to find something that's sustainable that matches the needs. It was disappointing that a service that is really well-patronised isn't successful and there's obviously other reasons for that," he said. Christchurch Airport chief executive Justin Watson was sad to see the flights go. "A number of the regional airlines have been facing big challenges so ultimately it wasn't a complete surprise. We were hoping that they could work through those challenges and that they could find a way to continue to operate. But unfortunately they haven't been able to do that," he said. Both services carried about 10,000 passengers a year. Watson would like to see a collective approach to ensure the wings of important regional services were not clipped. "There's a reality there that says every region can't be connected or it's going to cost so much that people just won't fly on it because it's too expensive," he said. "In some countries, there is support through the likes of government for ensuring connectivity remains." South Island Minister James Meager said the government had already taken action in a variety of ways - including providing investment in regional airport infrastructure, commencing the release of regional on-time flight performance data - and would soon release an aviation action plan. He understood the conditions were tough in the aviation industry and airlines were under pressure - and that the government was actively considering several options to address regional connectivity concerns and improve competition in the sector. Destination Marlborough general manager Tracey Green said Christchurch was a key visitor market for Marlborough. "Recent challenges with Air New Zealand and ferry services have compromised our connectivity and losing Christchurch as a direct link is a significant blow," she said. "The full impact of this loss in connectivity may not be immediately clear, but it's a real shame this is happening just ahead of the summer season, when we rely on those connections the most," Green said. With a renewed focus on the Cook Strait services, Andrew Crawford said he was confident about the future of the business. "We are not alone in this, Air New Zealand and other regional carriers in New Zealand, and world-wide, have been hit by the same cost increases, and the irony is that our passenger demand has never been stronger," he said. "However, aviation is a very price sensitive market and demand would dry up if we tried to pass all of the cost increases to our customers."
Otago Daily Times
20 hours ago
- Business
- Otago Daily Times
Loss of flights will impact Christchurch Hospital patients
By Tess Brunton of RNZ The loss of two popular regional flights is a blow to tourism and people needing treatment at Christchurch Hospital. Sounds Air will stop its flights from Blenheim to Christchurch and Christchurch to Wānaka from the end of September due to what has been described as 'out of control' costs. Airline cuts back Chch routes Sounds Air managing director Andrew Crawford said the airline was flying more passengers than ever but could not keep up with the costs that have remained high since the pandemic, engineer shortages and the weak New Zealand dollar. Sounds Air said it was going back to basics, canning the two routes, selling five smaller aircraft, and expanding its Cessna Caravan fleet for Cook Strait services. Ten staff will lose their jobs. That was after cancelling its services from Wellington to Taupō and Wellington to Westport last December and selling an aircraft. The Minister for the South Island and Associate Minister for Transport, James Meager, told Checkpoint he had spoken with Andrew Crawford recently to reassure him the issue was a high priority. But Crawford said they had reached out to the government numerous times to no avail, and passing the buck on to customers to cover costs was not an option. The airline's fares had gone up by more than 20 percent since Covid - they could go up another 20 percent and it would still not be enough to cover its costs, he said. Marlborough Mayor Nadine Taylor said the council had raised the issue with government, and was told market forces would take care of it. It was gutting for the region as the Blenheim-Christchurch route was a critical part of the region's economic recovery, she said. "I am frustrated that Sounds Air was unsuccessful in securing support from central government as regional connectivity is also important for economic growth, particularly tourism," she said. "There is often talk of the regions being our country's powerhouses - to be that we need infrastructure, services, and connectivity." Christchurch Hospital provided a lot of primary care for cancer patients, and Taylor had already been contacted by some of the patients who regularly used the service. "They're just sort of saying 'it's just such a devastating loss for them'. They're back to four or five hours on the road. They need family to transport them and take them rather than just dropping them at the airport," she said. Wānaka local and Queenstown Lakes Deputy Mayor Quentin Smith was disappointed the service was being cut. So instead of being able to take a short flight that was less than an hour, it meant an hours-long drive. "The alternative of either driving, which is about five-and-a-half hours each way or going to Queenstown, where you've got to drive over an hour each way plus you've got to be there a lot earlier for your flights than you do for Sounds Air," he said. His daughter used the service a few weeks ago, and he said it was well used by travellers for business, holidays and appointments. It also presented a problem for healthcare, especially for people coming from Wānaka or Blenheim who need to travel to Christchurch Hospital for treatment. "Healthcare, I think, is a big one because people will fly up to Christchurch and back for a specialist appointment ... we know that access to healthcare out of Wānaka is particularly challenging so that's an issue that concerns me," Smith said. Smith remembered when Air New Zealand used to fly the same route before the service was cut more than a decade ago. "There's been a bit of a history of the offering and loss of this type of service. We've just got to find something that's sustainable that matches the needs. It was disappointing that a service that is really well-patronised isn't successful and there's obviously other reasons for that," he said. Christchurch Airport chief executive Justin Watson was sad to see the flights go. "A number of the regional airlines have been facing big challenges so ultimately it wasn't a complete surprise. We were hoping that they could work through those challenges and that they could find a way to continue to operate. But unfortunately they haven't been able to do that," he said. Both services carried about 10,000 passengers a year. Watson would like to see a collective approach to ensure the wings of important regional services were not clipped. "There's a reality there that says every region can't be connected or it's going to cost so much that people just won't fly on it because it's too expensive," he said. "In some countries, there is support through the likes of government for ensuring connectivity remains." South Island Minister James Meager said the government had already taken action in a variety of ways - including providing investment in regional airport infrastructure, commencing the release of regional on-time flight performance data - and would soon release an aviation action plan. He understood the conditions were tough in the aviation industry and airlines were under pressure - and that the government was actively considering several options to address regional connectivity concerns and improve competition in the sector. Destination Marlborough general manager Tracey Green said Christchurch was a key visitor market for Marlborough. "Recent challenges with Air New Zealand and ferry services have compromised our connectivity and losing Christchurch as a direct link is a significant blow," she said. "The full impact of this loss in connectivity may not be immediately clear, but it's a real shame this is happening just ahead of the summer season, when we rely on those connections the most," Green said. With a renewed focus on the Cook Strait services, Andrew Crawford said he was confident about the future of the business. "We are not alone in this, Air New Zealand and other regional carriers in New Zealand, and world-wide, have been hit by the same cost increases, and the irony is that our passenger demand has never been stronger," he said. "However, aviation is a very price sensitive market and demand would dry up if we tried to pass all of the cost increases to our customers."
Scoop
2 days ago
- Business
- Scoop
Sounds Air Cut Flying Routes As Costs Surge
Sounds Air is cutting two regional services, saying it's facing 'out of control' costs despite strong bookings. The airline will no longer fly Blenheim to Christchurch or Christchurch to Wānaka from the end of September. That was after cancelling its services from Wellington to Taupo and Wellington to Westport last December and selling an aircraft. Sounds Air managing director Andrew Crawford told Nine to Noon aviation has been severely hit by escalating costs, supply chain challenges and a weak New Zealand dollar that was threatening the viability of all regional airlines. "In the last three months, we've had another half a million dollars of annual costs imposed on the business and at some point, you've just got to say 'no more. We just can't do it'," he said. Instead, the business will focus on its core regional services, selling its fleet of five Pilatus aircraft and expanding its Cessna Caravan fleet that operates in and around the Cook Strait. The decision will cost 10 staff their jobs across the Wānaka and Christchurch bases. Crawford said they were flying more passengers than ever but the costs were so high, engineers were difficult to find and keep, and they had exhausted all other options to make the business viable. Pre Covid, one of the avionic parts needed cost $28,000, but now the business was paying $70,000 for the same part. "How many seats do you have to sell on a nine seat aircraft to make that work? It's impossible." He acknowledged that people were already paying more for flights, saying fares had gone up more than 20 percent since Covid and they could go up another 20 percent and it still would not be enough. Another cost was the recent hike of the passenger service levy from the Civil Aviation Authority, which he said would cost the business close to $300,000 a year. "Where are we supposed to get that from? We've just got to pull that on the travelling public." They had reached out to the government numerous times to no avail, being told the business did not meet the criteria for the regional infrastructure fund months after being told to apply for it, he said. He was worried about the many regional people who used the flights to access healthcare and what they would do, Crawford said The change was a relief in some ways as the pressure on the business, staff and shareholders was extreme, he said. He was confident about the future of the business with its renewed focus on the Cook Strait, saying it was much more sustainable. "The numbers we're seeing are just astronomical. We used to do four flights a day in and out of Nelson, I think on Friday, we did 12. The demand is there, people are flying and these are cheaper aircraft to maintain."
1News
2 days ago
- Business
- 1News
'Devastated' Sounds Air to axe two routes, sell some aircraft
Regional airline Sounds Air will sell five aircraft and cut two routes from September, blaming rising costs and a "deadlock" over provincial air services. The carrier confirmed it would axe its Blenheim to Christchurch and Christchurch to Wānaka services from September 28, reverting to what it calls a "back to the future" model squarely focused on Cook Strait crossings. The airline will expand its Cessna Caravan fleet for shorter sectors while seeking buyers for five larger Pilatus aircraft, in order to help "rebuild the viability of the business". Sounds Air managing director Andrew Crawford said the airline's hand had been forced. "We are truly devastated that we have been forced into this position after five years of fighting for a solution," he said in a statement. ADVERTISEMENT "It will mean the loss of a number our dedicated and skilled staff, but we are also hugely disappointed for our incredibly loyal customer base who rely on us to get around New Zealand - not only for tourism and leisure purposes but also for regional access to critical healthcare, higher education, and to do business that contributes to regional economies." The Government is hoping to boost tourism with more money for international marketing. (Source: Breakfast) Sounds Air and other carriers, including Air Chathams, wanted the Government to step in and called for a concessionary loan scheme, 1News reported last month. The firm had already withdrawn Wellington to Taupō and Wellington to Westport routes in December. Crawford said the company had been fighting rising costs that threatened regional aviation, and that it faced a "deadlock" between government and private capital markets. "We are not alone in this, Air New Zealand and other regional carriers in New Zealand, and worldwide, have been hit by the same cost increases, and the irony is that our passenger demand has never been stronger," he said in a statement. "Government appears to believe that private capital markets will step in to sort this out, while on the other hand, private capital markets believe that government should step in to level the playing field like they do in other parts of the world, in order to maintain essential regional air services." Sounds Air will continue operating its core Cook Strait routes including Wellington to Blenheim, Wellington to Nelson, Wellington to Picton, Blenheim to Paraparaumu and Nelson to Paraparaumu. ADVERTISEMENT Associate Transport Minister James Meager has been approached for comment.
Otago Daily Times
2 days ago
- Business
- Otago Daily Times
Airline cuts back Chch routes as costs surge
Sounds Air is cutting two regional services, saying it's facing 'out of control' costs despite strong bookings. The airline will no longer fly Blenheim to Christchurch or Christchurch to Wānaka from the end of September. That was after cancelling its services from Wellington to Taupo and Wellington to Westport last December and selling an aircraft. Sounds Air managing director Andrew Crawford told Nine to Noon aviation has been severely hit by escalating costs, supply chain challenges and a weak New Zealand dollar that was threatening the viability of all regional airlines. "In the last three months, we've had another half a million dollars of annual costs imposed on the business and at some point, you've just got to say 'no more. We just can't do it'," he said. Instead, the business will focus on its core regional services, selling its fleet of five Pilatus aircraft and expanding its Cessna Caravan fleet that operates in and around the Cook Strait. The decision will cost 10 staff their jobs across the Wānaka and Christchurch bases. Crawford said they were flying more passengers than ever but the costs were so high, engineers were difficult to find and keep, and they had exhausted all other options to make the business viable. Pre Covid, one of the avionic parts needed cost $28,000, but now the business was paying $70,000 for the same part. "How many seats do you have to sell on a nine seat aircraft to make that work? It's impossible." He acknowledged that people were already paying more for flights, saying fares had gone up more than 20 percent since Covid and they could go up another 20 percent and it still would not be enough. Another cost was the recent hike of the passenger service levy from the Civil Aviation Authority, which he said would cost the business close to $300,000 a year. "Where are we supposed to get that from? We've just got to pull that on the travelling public." They had reached out to the government numerous times to no avail, being told the business did not meet the criteria for the regional infrastructure fund months after being told to apply for it, he said. He was worried about the many regional people who used the flights to access healthcare and what they would do, Crawford said The change was a relief in some ways as the pressure on the business, staff and shareholders was extreme, he said. He was confident about the future of the business with its renewed focus on the Cook Strait, saying it was much more sustainable. "The numbers we're seeing are just astronomical. We used to do four flights a day in and out of Nelson, I think on Friday, we did 12. The demand is there, people are flying and these are cheaper aircraft to maintain."
