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

 

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news