Latest news with #DuaneEmeny
Scoop
29-05-2025
- Business
- Scoop
The Headwinds Facing Regional Airlines
Regional airlines say they're one bird strike away from deep trouble, and cries for support are falling on deaf ears Passenger numbers on regional airlines have never been better, but the costs of running them have never been higher. 'Passenger numbers are through the roof,' says Sounds Air boss Andrew Crawford. But it has had to 'kill off' Taupō and Westport routes and sell an aircraft, and the company is still losing money. 'I wouldn't know one airline that isn't,' he says, citing fuel, labour and maintenance as the three big costs of flying. Add in landing fees, Airways fees and the Civil Aviation Authority more than doubling the passenger service levy. 'This is a critical issue for New Zealand,' says Crawford. 'Between us we're flying around 600 flights a week around regional New Zealand. We don't do that for fun, that's essential services, and I can tell you that a big part of it is healthcare.' Unless something drastic happens Crawford says he can't guarantee the security of other Sounds Air routes. He's not the only one. Air Chathams has dropped Norfolk Island and its Auckland – Whakatāne service is up in the air. Chief operating officer Duane Emeny tells The Detail that flying is a high risk business and conditions are the toughest they've been in his airline's 41 year history. 'You're one bad day from maybe having to pull an engine off an aircraft and send it away because you had a bird strike.' He says his father Craig Emeny, founder and chief executive, has taken the airline through the global financial crisis in the early 2000s, intense competition and even a grounding by the CAA and survived. 'He's had some real challenges in his life and this seems to be trumping a lot of them at the moment,' he says. Both airline bosses say they have had meetings with government ministers about support for the sector but Crawford says after six years he's given up. 'For six years we've been fighting to try and get support, try and get regional aviation in this country recognised and it just falls on deaf ears,' Crawford says. His airline is 'hanging off shareholders' mortgages' but no one is listening. Taupō mayor David Trewavas has a brand new $9 million airport terminal built with a Provincial Growth Fund grant but he can't find another airline willing to take over the Wellington – Taupō route after Sounds Air then Origin Air pulled out. Origin Air lasted no more than six weeks before deciding the service wasn't viable. Trewavas says his council could not have done any more to keep either airline. 'They were looking for a direct investment in the company and I don't think it's the council's business to be a part owner of an aviation company,' he says. But finding a replacement is not easy. Air New Zealand had looked at the route but doesn't have an aircraft available and Air Chathams is only a 'possibility'. 'There's not too many second tier airlines in New Zealand,' he says. Air Chathams' Duane Emeny says the most important step for the government would be to give airlines access to low or no-interest government concessionary loans. 'To be really clear, it is a loan, so it is money that those airlines would absolutely be paying back,' he says. But there's no definite response from the government. In an email to The Detail the Associate Transport Minister James Meager says the government is currently considering a range of options to support regional connectivity and improve competition in the sector but is yet to make any decisions, including on whether access to concessionary loans would be the right thing to do. 'We are committed to supporting existing measures to improve consumer experience flying, such as improving airline on-time performance through regular reporting, technology investments to speed up security queues, and infrastructure investments in our regional airports. 'The Commerce Commission is looking at competition in airports, and I am considering whether there is any benefit in further moves around airfare transparency and further scrutiny on how to reduce the wider costs facing the aviation sector.'
Scoop
29-05-2025
- Business
- Scoop
The Headwinds Facing Regional Airlines
Regional airlines say they're one bird strike away from deep trouble, and cries for support are falling on deaf ears Passenger numbers on regional airlines have never been better, but the costs of running them have never been higher. "Passenger numbers are through the roof," says Sounds Air boss Andrew Crawford. But it has had to "kill off" Taupō and Westport routes and sell an aircraft, and the company is still losing money. "I wouldn't know one airline that isn't," he says, citing fuel, labour and maintenance as the three big costs of flying. Add in landing fees, Airways fees and the Civil Aviation Authority more than doubling the passenger service levy. "This is a critical issue for New Zealand," says Crawford. "Between us we're flying around 600 flights a week around regional New Zealand. We don't do that for fun, that's essential services, and I can tell you that a big part of it is healthcare." Unless something drastic happens Crawford says he can't guarantee the security of other Sounds Air routes. He's not the only one. Air Chathams has dropped Norfolk Island and its Auckland - Whakatāne service is up in the air. Chief operating officer Duane Emeny tells The Detail that flying is a high risk business and conditions are the toughest they've been in his airline's 41 year history. "You're one bad day from maybe having to pull an engine off an aircraft and send it away because you had a bird strike." He says his father Craig Emeny, founder and chief executive, has taken the airline through the global financial crisis in the early 2000s, intense competition and even a grounding by the CAA and survived. "He's had some real challenges in his life and this seems to be trumping a lot of them at the moment," he says. Both airline bosses say they have had meetings with government ministers about support for the sector but Crawford says after six years he's given up. "For six years we've been fighting to try and get support, try and get regional aviation in this country recognised and it just falls on deaf ears," Crawford says. His airline is "hanging off shareholders' mortgages" but no one is listening. Taupō mayor David Trewavas has a brand new $9 million airport terminal built with a Provincial Growth Fund grant but he can't find another airline willing to take over the Wellington - Taupō route after Sounds Air then Origin Air pulled out. Origin Air lasted no more than six weeks before deciding the service wasn't viable. Trewavas says his council could not have done any more to keep either airline. "They were looking for a direct investment in the company and I don't think it's the council's business to be a part owner of an aviation company," he says. But finding a replacement is not easy. Air New Zealand had looked at the route but doesn't have an aircraft available and Air Chathams is only a "possibility". "There's not too many second tier airlines in New Zealand," he says. Air Chathams' Duane Emeny says the most important step for the government would be to give airlines access to low or no-interest government concessionary loans. "To be really clear, it is a loan, so it is money that those airlines would absolutely be paying back," he says. But there's no definite response from the government. In an email to The Detail the Associate Transport Minister James Meager says the government is currently considering a range of options to support regional connectivity and improve competition in the sector but is yet to make any decisions, including on whether access to concessionary loans would be the right thing to do. "We are committed to supporting existing measures to improve consumer experience flying, such as improving airline on-time performance through regular reporting, technology investments to speed up security queues, and infrastructure investments in our regional airports. "The Commerce Commission is looking at competition in airports, and I am considering whether there is any benefit in further moves around airfare transparency and further scrutiny on how to reduce the wider costs facing the aviation sector." Check out how to listen to and follow The Detail here.
Newsroom
28-05-2025
- Business
- Newsroom
The headwinds facing regional airlines
Passenger numbers on regional airlines have never been better, but the costs of running them have never been higher. 'Passenger numbers are through the roof,' says Sounds Air boss Andrew Crawford. But it has had to 'kill off' Taupō and Westport routes and sell an aircraft, and the company is still losing money. 'I wouldn't know one airline that isn't,' he says, citing fuel, labour and maintenance as the three big costs of flying. Andrew Crawford, Sounds Air managing director. Photo: Sounds Air Add in landing fees, Airways fees and the Civil Aviation Authority more than doubling the passenger service levy. 'This is a critical issue for New Zealand,' says Crawford. 'Between us we're flying around 600 flights a week around regional New Zealand. We don't do that for fun, that's essential services, and I can tell you that a big part of it is healthcare.' Unless something drastic happens Crawford says he can't guarantee the security of other Sounds Air routes. He's not the only one. Air Chathams has dropped Norfolk Island, and its Auckland-Whakatāne service is up in the air. Chief operating officer Duane Emeny tells The Detail that flying is a high-risk business and conditions are the toughest they've been in his airline's 41-year history. 'You're one bad day from maybe having to pull an engine off an aircraft and send it away because you had a bird strike.' He says his father Craig Emeny, founder and chief executive, has taken the airline through the global financial crisis in the early 2000s, intense competition and even a grounding by the CAA and survived. 'He's had some real challenges in his life and this seems to be trumping a lot of them at the moment,' he says. Both airline bosses say they have had meetings with government ministers about support for the sector but Crawford says after six years he's given up. 'For six years we've been fighting to try and get support, try and get regional aviation in this country recognised and it just falls on deaf ears,' Crawford says. His airline is 'hanging off shareholders' mortgages' but no one is listening. Taupō mayor David Trewavas has a brand new $9 million airport terminal built with a Provincial Growth Fund grant but he can't find another airline willing to take over the Wellington-Taupō route after Sounds Air then Origin Air pulled out. Origin Air lasted no more than six weeks before deciding the service wasn't viable. Trewavas says his council could not have done any more to keep either airline. 'They were looking for a direct investment in the company and I don't think it's the council's business to be a part owner of an aviation company,' he says. But finding a replacement is not easy. Air New Zealand had looked at the route but doesn't have an aircraft available and Air Chathams is only a 'possibility'. 'There's not too many second-tier airlines in New Zealand,' he says. Duane Emeny, chief operating officer of Air Chathams. Photo: Sharon Brettkelly Air Chathams' Duane Emeny says the most important step for the Government would be to give airlines access to low or no-interest government concessionary loans. 'To be really clear, it is a loan, so it is money that those airlines would absolutely be paying back,' he says. But there's no definite response from the Government. In an email to The Detail the associate transport minister James Meager says the Government is currently considering a range of options to support regional connectivity and improve competition in the sector but is yet to make any decisions, including on whether access to concessionary loans would be the right thing to do. 'We are committed to supporting existing measures to improve consumer experience flying, such as improving airline on-time performance through regular reporting, technology investments to speed up security queues, and infrastructure investments in our regional airports. 'The Commerce Commission is looking at competition in airports, and I am considering whether there is any benefit in further moves around airfare transparency and further scrutiny on how to reduce the wider costs facing the aviation sector.' Check out how to listen to and follow The Detail here. You can also stay up-to-date by liking us on Facebook or following us on Twitter.
RNZ News
28-05-2025
- Business
- RNZ News
The headwinds facing regional airlines
Air Chathams' Duane Emeny says the most important step for the government would be to give airlines access to low or no-interest government concessionary loans. Photo: Sharon Brettkelly Passenger numbers on regional airlines have never been better, but the costs of running them have never been higher. "Passenger numbers are through the roof," says Sounds Air boss Andrew Crawford. But it has had to "kill off" Taupō and Westport routes and sell an aircraft, and the company is still losing money. "I wouldn't know one airline that isn't," he says, citing fuel, labour and maintenance as the three big costs of flying. Add in landing fees, Airways fees and the Civil Aviation Authority more than doubling the passenger service levy. "This is a critical issue for New Zealand," says Crawford. "Between us we're flying around 600 flights a week around regional New Zealand. We don't do that for fun, that's essential services, and I can tell you that a big part of it is healthcare." Photo: Sounds Air Unless something drastic happens Crawford says he can't guarantee the security of other Sounds Air routes. He's not the only one. Air Chathams has dropped Norfolk Island and its Auckland - Whakatāne service is up in the air. Chief operating officer Duane Emeny tells The Detail that flying is a high risk business and conditions are the toughest they've been in his airline's 41 year history. "You're one bad day from maybe having to pull an engine off an aircraft and send it away because you had a bird strike." He says his father Craig Emeny, founder and chief executive, has taken the airline through the global financial crisis in the early 2000s, intense competition and even a grounding by the CAA and survived. "He's had some real challenges in his life and this seems to be trumping a lot of them at the moment," he says. Both airline bosses say they have had meetings with government ministers about support for the sector but Crawford says after six years he's given up. "For six years we've been fighting to try and get support, try and get regional aviation in this country recognised and it just falls on deaf ears," Crawford says. His airline is "hanging off shareholders' mortgages" but no one is listening. Taupō mayor David Trewavas has a brand new $9 million airport terminal built with a Provincial Growth Fund grant but he can't find another airline willing to take over the Wellington - Taupō route after Sounds Air then Origin Air pulled out. Origin Air lasted no more than six weeks before deciding the service wasn't viable. Trewavas says his council could not have done any more to keep either airline. "They were looking for a direct investment in the company and I don't think it's the council's business to be a part owner of an aviation company," he says. But finding a replacement is not easy. Air New Zealand had looked at the route but doesn't have an aircraft available and Air Chathams is only a "possibility". "There's not too many second tier airlines in New Zealand," he says. Duane Emeny, chief operating officer of Air Chathams. Photo: Sharon Brettkelly Air Chathams' Duane Emeny says the most important step for the government would be to give airlines access to low or no-interest government concessionary loans. "To be really clear, it is a loan, so it is money that those airlines would absolutely be paying back," he says. But there's no definite response from the government. In an email to The Detail the Associate Transport Minister James Meager says the government is currently considering a range of options to support regional connectivity and improve competition in the sector but is yet to make any decisions, including on whether access to concessionary loans would be the right thing to do. "We are committed to supporting existing measures to improve consumer experience flying, such as improving airline on-time performance through regular reporting, technology investments to speed up security queues, and infrastructure investments in our regional airports. "The Commerce Commission is looking at competition in airports, and I am considering whether there is any benefit in further moves around airfare transparency and further scrutiny on how to reduce the wider costs facing the aviation sector." Check out how to listen to and follow The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter .
NZ Herald
25-05-2025
- Business
- NZ Herald
Airline, council to investigate HQ shift
It was expected to be finished in two to three months, he said. 'I'm going up to Air Chathams' Auckland offices soon,' he said. 'We'll have discussions with [Air Chathams chief operating officer Duane Emeny] and his team and have a good look around their existing facility, to get an idea of what they would need at Whanganui Airport.' Emeny said a potential move was exciting, but 'the straight up truth' was the airline did not have the appetite to make a big investment in it. Duane Emeny says there could be an opportunity through the Government's Regional Investment Fund to construct a purpose-built facility in Whanganui. Earlier this year, he told the Chronicle that rises in aeronautical fees and increased costs for equipment were the latest issues the airline was addressing, with the overhaul of a Saab engine now costing US$1 million ($1.725m) and taking 18 to 24 months. Previously, the same job cost US$600,000 ($1.050m) with a six-month wait. There had been a large centralisation in domestic air travel - a 'larger planes, lower frequency model', he said. 'Things are exceptionally tight in the regional aviation space,' he said. 'The Government is spending millions on rail and billions on roads, and poor old aviation doesn't get a look in.' In April, Air Chathams said it was considering withdrawing its Whakatāne to Auckland route after losing more than $1m on it since April 2023. Whakatāne District Council agreed earlier this month to waive airport fees for the airline for the next six months. Langford, also the chief executive of Whanganui Airport, said the business case would look at costs and how much the council may need to contribute. 'Ultimately, this will be a commercial arrangement,' he said. 'The council's involved in this project because, in the long term, it will provide a return on any investment we put into the airport. 'Hypothetically, if we end up building a facility, that won't be funded from the ratepayer. It would be funded by the leasing revenue Air Chathams pay us.' Emeny said the business case was about 'finding the right mix of things' to make the relocation work. Whanganui District Council and Whanganui Airport chief executive David Langford. Photo / NZME There could be an opportunity through the Government's Regional Infrastructure Fund (RIF) to construct a purpose-built facility at the airport precinct, he said. 'The council could then provide some pretty generous terms around how much we pay for the first few years. 'Auckland is horrifically expensive, and we could probably build a hangar that's a whole lot better than what we've got. 'You'd be charged a fraction of the price in annual leases to be there.' The council has applied for $3.6m from the RIF to complete a parallel taxiway at the airport. Stage one of that project is already under way. Langford said the council's always looked for external funding sources for projects, rather than 'just defaulting to debt funding'. Emeny said Air Chathams had about 140 permanent staff, with 50 to 60 based in Auckland. 'It would be a big shift for our Auckland team and not everyone will be up for that. 'As a business, we need to be really careful with those decisions, because it's a very specialist industry we're in and you need highly qualified people. 'They are hard to find.' Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.
