Rotorua loses direct flights to Sydney

Rotorua to Sydney direct flights have been dropped because they were uneconomical. They were widely hailed as the savior of the Rotorua tourism industry when launched in 2009.

Rotorua will lose its transtasman international air service from the end of April next year.

Rotorua Regional Airport, the Rotorua District Council and Air New Zealand announced the termination of the Rotorua to Sydney direct flights today.

The last flight will be on April 25.

The council has contributed to transtasman operations since 2009, but based on the returns, believes the budget is best invested elsewhere - a decision supported by the airport company and Air New Zealand.

Ratepayers' net contribution to the Rotorua to Sydney service in the last financial year was $1 million, but has been more than $5 million since the start of the service.

Rotorua mayor Steve Chadwick said the council's decision to stop funding transtasman flights was the prudent thing to do.

"This council is committed to prudent financial management and our decision to stop funding the flights is part of the process we have been going through to ensure greater financial clarity, transparency and efficiency.

"The anticipated boost from transtasman flights hasn't happened and council considers the funding that has been going to that service can be better used in other areas," she said.

Rotorua Airport chief executive Alastair Rhodes said the decision was supported by the airport board and the airport would focus on future opportunities, including commercial land development, strategic relationships with other airports and North to South Island tourism flows, including a potential direct flight to Queenstown.

Mr Rhodes said the aviation market had changed significantly since the transtasman flights were launched in 2009, resulting in airlines moving such flights away from regional hubs to major airports.

"Due to these changes, the airport and the council firmly believe that the airport's commercial network efforts are best focused on where we have our competitive advantage - looking to grow our North to South Island tourism links, providing better domestic access for locals and greater support for the local tourism sector."

Mr Rhodes said the airport remained focused on ensuring efficient and effective air connectivity to support the region's growth development, and hopes to start discussions in the next month on a regional integrated air strategy in order to achieve this.

"We agree with the tourism sector and regional industries that air connectivity is a key element in the future development of our region, but it needs to be sustainable for everyone involved," he said.

- For the full story read tomorrow's Rotorua Daily Post.