Dunedin has felt the brunt of Air NZ cuts in the past, leaving the Dunedin City Council and business representatives, scrambling around, hosting Air NZ officials and generally trying to ensure the services through Dunedin International Airport remain - or even grow.
Regional Economic Development Minister Shane Jones decided to have a crack at the airline this week, complaining about the airline withdrawing services from regions.
He suggested chairman Tony Carter and chief executive Christopher Luxon resign. Mr Carter hit back, reminding Mr Jones the airline is a commercial entity with a duty to do the best for the company.
It will pay Mr Jones to take a look back in history to when former finance minister Sir Michael Cullen saved Air NZ from being taken over by overseas interests.
Although Air NZ is profitable now, it has not always been the case. Some badly judged forays overseas meant the near collapse of the then national carrier.
Whether Air NZ can still be called a "national carrier" in the wider sense is a moot point. It does carry the silver koru around the world, just not to some places in New Zealand
Mr Jones is out of line with his criticism and has resorted to easy politicking. Of course, his comments will resonate with many people in the regions. Whanganui is a prime example of where Air NZ has copped some criticism.
In 2016, the airline stopped Whanganui to Auckland and Blenheim to Christchurch services as there was not sufficient demand to sustain 50-seat aircraft. Whanganui lost its service to Wellington in 2014.
The greater number of destinations offered, the higher frequency of flights and the range of connections available from nearby Palmerston North have undermined demand at Whanganui.
But as in some other areas, a smaller airline stepped in and provided a service to regulars. This has been fraught with difficulties in the past, however. Air NZ does not take kindly to competition on its home patch and is quite ruthless when it is faced with a price war.
Having a large amount of cash on hand means Air NZ can usually see off any competition, as a review of failed airlines in New Zealand will show.
Let us also remember, Mr Jones has a $3billion Provincial Growth Fund to spend before the next election. So far, northern centres have fared rather well. Perhaps Mr Jones can investigate how to keep smaller airlines flying into some of the northern towns, if he is so upset about Air NZ.
When the former National government sold down its stake in Air NZ to 51%, it did so knowing it still had the overall shareholding in the airline. That does not mean it can interfere with the running of
the airline. Far from it. The company needs to follow the rules,
and directors need to ensure they are meeting their obligations.
Not to do so can result in fines
and/or imprisonment.
Strangely, two mayors were interviewed and supported Mr Jones' claims of neglect by Air NZ in their regions. However, both said their districts had embraced Sounds Air and Air Chathams which had stepped in to provide regional services.
Air NZ is a publicly listed company with large investment funds holding significant shareholdings, along with smaller New Zealand investors. Having a Government minister criticising and threatening a listed company, in which the Government has a shareholding, will not give overseas investors confidence. Any drop in value of the shares may mean a please explain notice issued by the NZX.
Prime Minister Jacinda Ardern has publicly reprimanded Mr Jones. Finance Minister Grant Robertson is the shareholding minister in Air NZ, not Mr Jones who will likely bluster along trying to lift New Zealand First's support in the regions.
