Transtasman flights off airport agenda for now

A study forced by public interest in the feasibility of commercial transtasman flights into and out of Hawke's Bay Airport has ruled them out - because there's not enough interest.

Hawke's Bay Airport, the Government-councils airport partnership, said yesterday it was not commercially viable, citing as examples a lack of airline interest, failure of previous Hamilton and Palmerston North services, and costs of maintaining flights through Rotorua.

But leading airport services critic Simon Nixon, a Hastings district councillor says they're not valid comparisons - all three are within an hour-and-a-half by road of major-centre international airports, but Napier is isolated by trips taking four hours or more.

While seeing no point in spending while no airlines are considering international flights from Hawke's Bay, he says investment is needed now to prepare for when opportunities do emerge, and measures are needed so new players aren't crushed by Air New Zealand or other bigger players.

"All the tourism figures show declines in numbers," he said. "So if we don't do something we will slowly fall further behind."

The airport company - half-owned by the Crown, partnered with Napier City Council (26 per cent) and Hastings District Council (24 per cent) - doesn't rule out future possibilities, especially if more airlines enter the transtasman market.

Just-retired company chairman John Palairet said the decision was supported by the shareholders.

"We have reached the conclusion that we do not have a business case to support a service," he said. "It would expose the airport company to an unacceptable level of financial risk to pursue it any further at this stage.

"This does not mean that a transtasman service will not operate from Hawke's Bay at some time in the future," he said, highlighting international flights remain in the long-term plan to 2030. "But we will now pursue other opportunities to progress the development of the airport."

Airlines were clear they had no current interest in providing a transtasman service from Hawke's Bay, he said. "As previous research has indicated, there would be a significant shortfall in revenue, which the airport company or other local parties would be expected to cover," he said.

Napier Mayor Bill Dalton agreed a regular service was currently too much of a financial risk, especially inbound flights which would need significant marketing campaigns in Australia.

Hastings Mayor Lawrence Yule said: "This brings to a conclusion the current prospects, but the door remains open for any airline to re-open discussions."

The airport can still be used for private jets and medical international flights, using contracted immigration and customs services, and Hawke's Bay Today understands significant passenger charters cannot be ruled out, one source suggesting an A320 flight at 85-90 per cent loading, or about 150 passengers, would be possible.

Key issues for Hawke's Bay travellers are costs and time. The lowest Air NZ fares available yesterday for Melbourne Cup followers in the few days before and after the November 4 race, highlight the cost factor, with the cheapest Napier-Melbourne-Napier trip being $796, the cheapest Auckland-Melbourne-Auckland journey being $507, and the cheapest Napier-Auckland return being $158.

Labour Party Napier candidate Stuart Nash agreed with the airport decision, saying "enormous" costs were involved in setting up for international flights, but adding: "The lack of competition (in NZ's airline market) is the real killer for all of us in Hawke's Bay."