\u201cWe need to have a really hard look at the air connectivity we think New Zealand should have, or believe New Zealand needs, and ask ourselves whether that is possible to deliver in the settings we have now.\u201d<\/p>\n
She said regional carriers were often important vectors for the delivery of health and social services.<\/p>\n
\u201cIt\u2019s about the places New Zealanders live and the services we ask be provided.\u201d<\/p>\n
She said that was a \u201cmuch bigger and more complex policy question\u201d than discussing the economics of every single regional route in isolation.<\/p>\n
\u201cWe will never get anywhere if we keep on looking to fix one air route or one rail line or one road,\u201d O\u2019Brien said.<\/p>\n
\u201cAny service that [Air] Chathams is using, it is funding. That\u2019s not the same for all transport modes in New Zealand,\u201d she added.<\/p>\n
\u201cIt\u2019s not the responsibility of Air Chathams to maintain regional connectivity. They have to take these really hard decisions.\u201d<\/p>\n
Simon Wallace, Aviation Industry Association (AIANZ) chief executive, said the news was not unexpected, but still disappointing.<\/p>\n
He said the service allowed people to fly direct to Auckland without having to first drive the roughly 75km to Wellington Airport.<\/p>\n
Wallace said the Aviation Council<\/a> was scheduled to assess all aviation charges.<\/p>\n Those included charges or fees from Airways NZ air traffic control, airports, and the Civil Aviation Authority.<\/p>\n \u201cThe fuel prices have added to the problem for the likes of Air Chathams, which was already running a marginal operation.\u201d<\/p>\n But Wallace said the operation had been marginal because of the fees airlines were charged.<\/p>\n In April, the Government announced $21.952 million in loans to three airlines.<\/p>\n That included $17.2m for Air Chathams to refinance debt.<\/p>\n But as of last week, the money had not been dispensed<\/a>.<\/p>\n Fund administrator K\u0101noa, the Regional Economic Development & Investment Unit, cited legal complexities and the need to first ensure Crown funding was used appropriately.<\/p>\n \u201cI don\u2019t know whether having that money now for Air Chathams would have saved the services to Paraparaumu, but the money should have been dispensed more quickly,\u201d Wallace said today.<\/p>\n Air Chathams said the final Auckland-Paraparaumu scheduled services would operate on July 31.<\/p>\n \u201cThis has been a very difficult decision for my team and I to make,\u201d said Duane Emeny, Air Chathams\u2019 chief executive.<\/p>\n \u201cBut it is the only responsible path for the family-owned airline to take without affecting the viability of its other routes, including its lifeline service to the Chatham Islands.\u201d<\/p>\n In an email to customers, he said Air Chathams had experienced significant cost increases across all areas of its business.<\/p>\n He said that included aircraft maintenance, labour, airport charges, air traffic services, compliance, and most recently, fuel.<\/p>\n \u201cThe result is that this route is no longer commercially sustainable, and it is costing us money every time we fly.\u201d<\/p>\n He said the service had been operating since 2018.<\/p>\n \u201cWe understand this news will be disappointing, and we sincerely apologise for the impact this may have on your travel plans.\u201d<\/p>\n The airline would have a reduced schedule on the route until July 31.<\/p>\n The aircraft serving K\u0101piti would be redeployed to serve regional communities including the Chatham Islands, Whakat\u0101ne and Whanganui.<\/p>\n \u201cWe would welcome the opportunity to return to the K\u0101piti Coast in the future if conditions allow,\u201d Emeny added.<\/p>\n