Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Eagle Air suspends flights to Wanaka

Media release
14 November 2012
Eagle Air suspends flights to Wanaka

Eagle Air is suspending its loss making service between Christchurch and Wanaka from January next year.

The service was first introduced in 2004 but has always struggled commercially and is not projected to break even in the near future.

Eagle Air General Manager Carrie Hurihanganui says the situation has been exacerbated by ongoing cost increases; including those at both the Christchurch and Wanaka ends of the service.

Queenstown Lakes District Council increased facilities rental costs at Wanaka Airport last year and Christchurch International Airport Limited recently declared a 63% increase in landing fees from December, with another increase planned for July 2013. This is despite average fares for this market having reduced by 4% over the past five years.

“For more than eight years we’ve worked hard to try to make this route work. We’ve tried increasing schedule frequency, different service timings, reducing fares, investing in promoting the service and working with local stakeholders; including suggestions around improving local infrastructure. All of this has proved unsuccessful and only added to the hundreds of thousands of dollars we have lost on this route over the years.

“To break even on the Christchurch – Wanaka route we would need to increase fares by over 40% but the average fare is already higher than the average fare between Christchurch and Queenstown.”

Queenstown offers about 25,000 return seats per week to a range of destinations and Ms Hurihanganui says the Christchurch – Wanaka route simply can’t compete.

The last flight to operate this service will be 30 January 2013.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news