Origin looks to cut aircraft lease costs

Origin Pacific is investigating a new aircraft lease arrangement this year to take advantage of better rates.

Chief executive Robert Inglis said the Nelson-based airline leased planes from British Aerospace and two Canadian companies, and it would stick with the British Aerospace aircraft as it was "comfortable" with the product.

The airline has a fleet of five 29-seater Jetstream 41 aircraft and Inglis said those planes were introduced for the Qantas code-share, when aircraft prices were high before the September 11, 2001, terrorist attacks.

Lease prices had since halved.

"We do have the opportunity for a new negotiation with the lessors and if we can achieve a suitable outcome, return the aircraft or replace them at a competitive rate."

No significant change would be made to the eight-strong, 18-seat Jetstream 31 fleet, which was ideally suited to Origin's operations.

Origin made changes last year when it entered an arrangement with Qantas' New Zealand freight arm, Jet Connect.

Inglis would not say how much that was worth to the airline, but it was not Origin's most significant aspect.

He did say the airline, which has about 300 staff, was operating profitably by the end of last year.

It struck trouble earlier in the year after Qantas pulled the plug on the code-share deal. Staff were laid off and a deal was struck with creditors who were owed $11.4 million.

Inglis said the airline expected to continue operating profitably and would focus on freight and charter work.

- NZPA