Australia-Dunedin flights not part of Air NZ's plans

Delegates gather at the Trenz conference  at the Rotorua Energy Events Centre. Photo: NZME
Delegates gather at the Trenz conference at the Rotorua Energy Events Centre. Photo: NZME
Sydney or Melbourne flights to and from Dunedin appear no closer to reality, but Air New Zealand says it will continue to consider the possibility.

Chief revenue officer Cam Wallace told the Otago Daily Times at the Trenz tourism conference in Rotorua yesterday such flights were ''not on the table''.

Flights have run in the past, but despite regular calls from Dunedin to reinstate them, the only international flight from Dunedin is a Brisbane service.

It was a market Air New Zealand assessed ''relatively regularly'', to find out what the demand was, Mr Wallace said.

In its evaluation of the suitability of the market, the company took the capital cost of an aeroplane, considered how it could be scheduled between two airports, and did a ''quite extensive analysis'' of what market demand existed.

There were well-established models of how many more people might travel if a route was introduced.

The types of travellers were also considered, whether they were travelling for leisure, to visit friends and relatives, or for business.

A mix of all three was important, as there was a difference to how much the different groups were prepared to pay.

Operating costs were also added to the mix.

''When you deploy an aircraft you're putting a $55million or $100million asset in a market.''

The company also needed to consider where else it might be used.

''It's probably one of the biggest decisions we make.

''We have tried before, and it hasn't met our expectations.''

Mr Wallace said the airline did not completely dismiss the idea as a possibility for the future.

''It's one of those markets we think all conditions going well, circumstances can change.

However, ''from our perspective at the moment there's no concrete plans''.

The company spent lot of time talking to Dunedin Airport chief executive Richard Roberts, a ''major and compelling advocate'' for the idea.

''The voices from Dunedin are well heard at Air New Zealand head office.''

Domestically, Air New Zealand was happy with seat numbers to and from Dunedin, and had no plans to change them.

Comments

Do not expect Air NZ to change its business model for the regions which includes Dunedin. We are an after thought, where they use old and dirty/poorly kept planes on all our services because they can milk the regions to fund lose making routes such as China (a $100m loss and counting).

Personally I would rather have another airline flying to Australia direct from Dunedin. The family & I are big supporters of the Brisbane flight as they are clean and efficient with good Australian connections. Both Virgin & Jetstar NZ use newer and cleaner planes.

You lose all credibility.
Air NZ's successful business model is necessary to make a profit after all and to purchase new planes and pay their excellent staff well. Air NZ has one of the newest fleets in the world and their aircraft are well cleaned, one of the cleanest airlines, constantly winning awards. You say you "are big supporters" of the current only daily flight. How many times this year have you actually flown it?? Doesn't Virgin fly old 737's??
To enter a route, an airline needs to be sure there is a mix of holiday tourists, those visiting people and those on business. You cannot operate off just one or 2 of those types. Dunedin does not get the tourists. International flights to the south are centred around Queenstown. Air NZ would do better to put international flights in to Invercargill, as an alternative to taking the load off Queenstown. A far quicker, cheaper and safer alternative.

David, Previous flights were not supported or viable and nor will future flights. I do not know how much longer the current ‘only international flight’ can continue. Such identical situations (Hamilton, Rotorua & Palm Nth) all had to abandon their international airports (at great losses).
Air NZ is correct in stating that all 3 passenger types (tourists/ family/ business) are necessary to support seat capacity. Dunedin sadly does not garner the tourist market alongside its neighbour Queenstown. If there was to be a future for Dunedin it would be absorbing the expanding Queenstown market and for that, it is too far away with 3 hours of poor drive = unacceptable.
Invercargill poses a far better option in all aspects - having Milford Sound closer than Queenstown, the growing Stewart Island market, closer to Queenstown (especially after a Milford visit), can take larger planes with clearer skies.
I would say that if the upcoming AKL – IVC flights are successful then Air NZ will continue that same plane on to Aussie.

 

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