Wānaka Stakeholders Group chairwoman Meg Taylor said Sounds Air’s cancellation of its Wanaka-Christchurch route was due to similar operational costs that had caused Air New Zealand to reduce or pull out of several regional routes.
"It’s hard to make such routes pay even with turboprops," Ms Taylor said.
"Which is why we are nervous that an agenda still exists to develop Wānaka Airport for larger aircraft."
Sounds Air announced yesterday it was quitting its three daily flights between Wanaka and Christchurch from September 28, due to increased passenger levies it said would cost it an extra $305,000 a year and push the price of tickets between to the two centres from $350 to at least $500.
Managing director Andrew Crawford said the company could no longer afford it and felt it had been forced to drop the route after five years of fighting for a solution.
"Costs are out of control and since Covid, costs have double and tripled."
The Civil Aviation Authority had introduced a 145% increase on passenger levies, he said.
"Even then [$500 is] not enough. There is only so much people can pay, so it just has to stop.
"They [CAA] are all the time holding their hands out saying give us more, give us more — and at some point you just can’t," he said.
The problem was not passengers, as they had never had more in the company’s history, he said.
Ten staff would be made redundant and the planes used on the route, which took nine passengers at a time, sold.
"I wouldn’t be surprised if other airlines follow," Mr Campbell said.
The Wanaka Stakeholders Group is an Upper Clutha community group that has been actively involved in discussions and legal challenges regarding the future of Wanaka Airport and its potential development for commercial jet services.
In May, the group launched its own proposal for the airport, advocating for a development model centred on strong local input.
Ms Taylor said it would be interesting to see if the Queenstown Lakes District Council still wanted to push ahead with plans to expand Wanaka Airport and have larger commercial flights in and out of it given that there would now be no scheduled commercial flights from it.
The required certification involved spending more than $11 million at the airport as well as a more expensive management structure, she said.
Queenstown Airport manager of sustainability and corporate affairs Sara Irvine said jetliner travel was not on the governing body’s radar.
"Our strategy is 100% not that."
Queenstown Lakes District Mayor Glyn Lewers said the announcement from Sounds Air was disappointing for air connectivity to and from Wānaka.
"Some in the community really relied on this service and I certainly feel for the staff who will lose work as a result of this decision."
Interim Queenstown Airport chief executive Todd Grace also said the axing was disappointing.
"We share in the disappointment that this popular connection between Wanaka and Christchurch will be withdrawn. The Sounds Air team has worked hard to build a highly valued service and we know this will be missed by the local community."
