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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news