Pacific Blue asks PM to approve Whenuapai airport

By CHRIS DANIELS

Prime Minister Helen Clark has been asked by frustrated low-cost airline Pacific Blue to fast-track plans for a new commercial airport at Whenuapai.

The local wing of Virgin Blue has appealed to the Government to speed up the establishment of a new airport, saying Auckland International Airport was not offering it reasonable terms to start flying domestically.

In a letter to Helen Clark, Pacific Blue chief executive Tony Marks said the airline "finds itself in a difficult position with Auckland International Airport Ltd."

"It has become apparent that without Whenuapai, both Pacific Blue and the interest of New Zealand air travellers will be compromised."

Auckland International Airport is lobbying hard against a joint proposal by Waitakere City Council and infrastructure investor Infratil to set up a new commercial airport at the West Auckland airbase. It told Pacific Blue it could either work around the other airlines, or pay $3 million for its own terminal.

These options had been offered "in a way that will put us at a significant commercial disadvantage to our major competitors", said Marks.

"As you can appreciate, the options above do not provide a viable platform for Pacific Blue to start domestic operations from Mangere, therefore we respectfully ask your Government to consider fast-tracking the Whenuapai airport project."

"If the Whenuapai airport project is progressed, then we believe competition will be enhanced, low airfares maintained and adequate facilities provided both for now and well into the future."

Marks told the Prime Minister the airline had new aircraft arriving this year that were ready to start flying to and from Auckland, but "we are being held back by a serious lack of adequate and economically viable facilities at Mangere".

"In summary, it's hard to imagine Pacific Blue being able to operate a substantial domestic operation in New Zealand without equitable access to the nation's largest city and business capital. Therefore we respectfully as that your Government does whatever it can to advance the Whenuapai option with all due haste."

In an interview with the Business Herald, Marks said his airline was not simply using the threat of moving to Whenuapai as a negotiating tactic. Pacific Blue was not looking for special treatment or a "sweetheart deal".

The airport, as a monopoly, should be encouraging new airlines to come in, he said.

"This doesn't, unfortunately appear to be high on the priority list in Auckland at the moment. We're just asking for a fair crack of the whip."

Airport company chief executive Don Huse said discussions with Pacific Blue had been going on for the past 12 months, and had been "very productive and a constructive engagement".

At the conclusion of the latest meeting, the positions of both parties was "very, very positive". More information for Pacific Blue was being sent.

While encouraging and helping new entrants, the company had to make sure the interests of its existing customers were met.

"We can't just cut a deal with Virgin Blue, we have to make sure that that's not prejudicial to the business interests of the incumbents," he said. It would be bad practice to keep surplus terminal space sitting idle, simply waiting for new entrants or expansion from other airlines.

* Defence Minister Mark Burton is expected to present options for the future of the Whenuapai air base to his cabinet colleagues next month. The Regional Growth Forum, which has representatives from Auckland's local councils and the Regional Council, last week voted to endorse a report saying that a commercial airport was suitable for the site.