Latest news with #Pilatus
Scoop
3 days ago
- Business
- Scoop
Marlborough Mayor ‘Disappointed' By Sounds Air Cuts
Marlborough mayor Nadine Taylor says the loss of some critical Sounds Air routes and reduction of its fleet is a sad day for the region. Sounds Air announced on Monday they would be selling their fleet of Pilatus PC12 aircraft and axing their Blenheim to Christchurch and Christchurch to Wānaka routes from September 28. Ten staff would be made redundant. Sounds Air managing director Andrew Crawford said he was devastated, but the company could not contend with mounting costs and a weak New Zealand dollar. 'It will mean the loss of a number of 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 and higher education, and to do business that contributes to New Zealand's regional economies,' Crawford said. Taylor said that Marlborough Airport, a subsidiary of the Marlborough District Council, had been working with the airline to navigate through challenging times. 'It is disappointing and sad for Marlborough to lose the Blenheim to Christchurch route. This service was particularly important as it provided a vital air link for Marlborough people to get to specialist treatment in Christchurch,' Taylor said. 'There is no other option to fly direct from Blenheim to Christchurch – this is now a four-hour drive. 'That is going to put additional pressure and stress on those who are already at their most vulnerable.' Taylor said she was frustrated that Sounds Air did not receive any government support, given the company contributed to regional connectivity, tourism, and economic growth. 'There is often talk of the regions being our country's powerhouses to be that, we need infrastructure, services, and connectivity,' Taylor said. 'If regions are to grow in the manner central Government wants, investment in this space is warranted and indeed necessary.' Destination Marlborough general manager Tracey Green said the loss of a direct connection to Christchurch was a 'significant blow'. 'Recent challenges with Air New Zealand and ferry services have compromised our connectivity,' Green said. 'These are tough economic times for everyone and Sounds Air has been a strong strategic partner for Marlborough, connecting our region with two of our main domestic markets, Christchurch and Wellington. '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.' The airline's challenges came to light during Covid, and it had continued to struggle over the past five years. Crawford said a Pilatus engine that cost US$850,000 (NZ$1.42 million) just a few months ago was now being quoted at US$1.4m (NZ$2.3m), and the passenger safety levy from the Civil Aviation Authority rose 145%. A PC12 aircraft was recently sold to help ease the financial burden, and last year Sounds Air axed its Wellington to Taupō and Wellington to Westport routes. LDR is local body journalism co-funded by RNZ and NZ On Air.
Scoop
4 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."
Time of India
4 days ago
- Business
- Time of India
Sounds Air slashes Christchurch flights amid soaring costs
Despite high bookings, Sounds Air is reducing two regional services because to "out of control" costs. Beginning at the end of September, the airline will no longer provide flights from Blenheim to Christchurch or Christchurch to Wānaka. Explore courses from Top Institutes in Select a Course Category PGDM CXO Design Thinking Healthcare Project Management Digital Marketing Data Science Cybersecurity MCA Others Leadership Finance Degree Artificial Intelligence Public Policy healthcare Operations Management Management Data Analytics Data Science others Technology MBA Product Management Skills you'll gain: Financial Analysis & Decision Making Quantitative & Analytical Skills Organizational Management & Leadership Innovation & Entrepreneurship Duration: 24 Months IMI Delhi Post Graduate Diploma in Management (Online) Starts on Sep 1, 2024 Get Details That came after it sold an aircraft and cancelled its routes from Wellington to Westport and Wellington to Taupo in December of last year. Also read: Air New Zealand new uniform, designed by Emilia Wickstead and inspired by Maori story Andrew Crawford, managing director of Sounds Air, said Nine to Noon that the survival of all smaller airlines was in jeopardy due to rising prices, supply chain issues, and a weak New Zealand dollar. Live Events "We've had an additional half a million dollars in annual expenses placed on the company in the last three months, and eventually you have to say enough. "We simply cannot accomplish it," he stated. Rather, the company will concentrate on its primary area services, selling its five Pilatus aircraft and growing its fleet of Cessna Caravans that fly in and around the Cook Strait. Employee shortage blamed Ten employees from the Wānaka and Christchurch locations will lose their employment as a result of the decision. Crawford claimed that even while they were transporting more people than before, they had run out of alternative ways to make the business work, the expenses were extremely high, and it was hard to locate and retain engineers. One of the necessary avionic parts cost $28,000 before COVID, but the company was now spending $70,000 on it. "To make it work, how many seats must be sold on a nine-seat aircraft? It isn't feasible. Also read: Air New Zealand faces backlash over rising airfares He admitted that consumers were already paying more for flights, stating that since COVID, tickets have increased by more than 20% and that an additional 20% increase would still not be sufficient. Loss of over $300k due to air fare price increases He also claimed that the company will lose about $300,000 annually as a result of the Civil Aviation Authority's recent increase in the passenger service charge. "From where should we obtain that? We just must do that to the travelling public. Months after being instructed to apply for the regional infrastructure fund, he said, they had contacted the government multiple times without success and were informed that the company did not fit the requirements. Crawford stated that he was concerned about what would happen to the several area residents who utilised the flights to obtain medical care. Relief for employees priority According to him, the shift was somewhat of a relief because of the tremendous strain on the company, employees, and shareholders. With the company's renewed emphasis on the Cook Strait, he expressed confidence in its future, stating that it was far more sustainable. Also read: Air New Zealand CEO Greg Foran to quit as airline industry faces tough challenge "The figures that we are witnessing are simply astounding. We used to fly in and out of Nelson four times a day; on Friday, I believe we flew twelve. People are flying, there is a need, and maintaining these planes is less expensive.
1News
4 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
4 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."
