Dunedin airport progress

Schedule  them and they will come.

That seems to be the response to extra flights from Dunedin in the past two years. Capacity rose by about 10% as Jetstar introduced a Wellington service and Air New Zealand increased seat numbers on that route. Passenger numbers jumped about the same percentage.

Dunedin Airport has hosted a record 947,315 for the past 12 months and December was the busiest month yet. The million milestone is suddenly not too far away. Rightly, the  staff at Dunedin Airport are pleased.

Numbers had not moved much since 2012, and the airport’s international figures were affected by Air New Zealand withdrawing the summer Sydney link in 2014, leaving just a Brisbane overseas connection.

The one disappointment in the past year was the withdrawal of fledgling Kiwi Regional Airlines. Its Nelson connection, in particular, came close to surviving. With small planes and limited flights the actual passenger numbers were small.

There is little doubt about the benefits of competition. Jetstar flights to Wellington have sharpened fares and its Auckland connection has helped encourage Air New Zealand to maintain services and special prices on the route. The competition also encourages promotion and advertising and low prices increase use enormously.

Much of the rise in patronage is in the leisure market, and is discretionary spending.

Given, as well, the numbers of Dunedinites who do much of  their business in other parts of the country and the world,  the consolidation of links to Auckland and Wellington are vital. It is just such a shame more international connections at good prices from Dunedin have not materialised.

The original budget Kiwi Air and Air New Zealand’s Freedom Air were successful and tied Dunedin to Sydney, Brisbane and Melbourne and even for a while Coolangatta. At the July 1996 peak there were 10 flights a week from Dunedin to Australia. The nature of airlines however, is they direct their planes to where they believe they can make the most money.  Hence, Air New Zealand, despite good loadings on its Sydney summer flights, wanted to use its planes elsewhere and Dunedin suffered.

It was, also, not many years ago that Dunedin was busier than Queenstown. Now, Queenstown is soaring past about 1.7 million passengers a year.  Flights from Queenstown to Australia dominate and their success again lessens the opportunities from Dunedin. Project Gateway, a Dunedin City Council initiative, largely failed, and Dunedin is at the mercy of airlines.  Particularly frustrating are the costs of flying to Christchurch.

Usually, it is cheaper to fly the longer distances to Wellington and Auckland, and many Dunedin people and families will continue to drive to Christchurch for international flights.  Queenstown might also become a more popular exit point, although prices are not yet quite so competitive from there.  One of Dunedin drawbacks is the airport’s distance from the city centre, adding to the costs. The airport, too, will have to be careful not to abuse its car parking monopoly if it wants to continue to grow and attract more patronage.

Along with growth comes the need for better facilities, and airport chief executive Richard Roberts has said the mooted expansion of the departure area will go ahead in the coming financial year. Not that long ago, before the arrival of Jetstar in July 2011, much of what had been an expanded terminal lay empty.  It is little wonder the airport company is cautious when developing facilities.

Quality air links are vital to economic success.  Even, for example,  overseas students numbers in the South suffer because students and their families face the cost and perceived hassle of extra travel legs after their New Zealand arrival.

The rise in Dunedin passenger numbers is most welcome because it consolidates current services and encourages airlines to consider extra capacity.

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