Regional airline Sounds Air will sell five aircraft and cut two routes from September, blaming rising costs and a “deadlock” over provincial air services.
The carrier confirmed it would axe its Blenheim to Christchurch and Christchurch to Wānaka services from September 28, reverting to what it calls a “back to the future” model squarely focused on Cook Strait crossings.
The airline will expand its Cessna Caravan fleet for shorter sectors while seeking buyers for five larger Pilatus aircraft, in order to help “rebuild the viability of the business”.
Sounds Air managing director Andrew Crawford said the airline’s hand had been forced.
“We are truly devastated that we have been forced into this position after five years of fighting for a solution,” he said in a statement.
“It will mean the loss of a number our dedicated and skilled staff, but we are also hugely disappointed for our incredibly loyal customer base who rely on us to get around New Zealand – not only for tourism and leisure purposes but also for regional access to critical healthcare, higher education, and to do business that contributes to regional economies.”
Marlborough Mayor Nadine Taylor said it was “disappointing and sad for Marlborough to lose the Blenheim to Christchurch route”.
“This service was particularly important as it provided a vital air link for Marlborough people to get to specialist treatment in Christchurch.
“There is no other option to fly direct from Blenheim to Christchurch – this is now a four-hour drive. That is going to put additional pressure and stress on those who are already at their most vulnerable.”
Associate Minister of Transport James Meager said he has met with several regional airlines and airports to consider opportunities to support them.
“I have also spoken with Andrew at Sounds Air as recently as Thursday; to give him assurances we continue to give this high priority.
“The Government’s already taken action in a variety of ways – including providing investment in regional airport infrastructure, commencing the release of regional on-time flight performance data – and will soon release an aviation action plan.
“I understand conditions are tough in the aviation industry and airlines are under pressure. The Government is actively considering several options to address regional connectivity concerns and improve competition in the sector.”
The Government is hoping to boost tourism with more money for international marketing. (Source: Breakfast)
Sounds Air and other carriers, including Air Chathams, wanted the Government to step in and called for a concessionary loan scheme, 1News reported last month. The firm had already withdrawn Wellington to Taupō and Wellington to Westport routes in December.
Crawford said the company had been fighting rising costs that threatened regional aviation, and that it faced a “deadlock” between government and private capital markets.
“We are not alone in this, Air New Zealand and other regional carriers in New Zealand, and worldwide, have been hit by the same cost increases, and the irony is that our passenger demand has never been stronger,” he said in a statement.
“[The] Government appears to believe that private capital markets will step in to sort this out, while on the other hand, private capital markets believe that government should step in to level the playing field like they do in other parts of the world, in order to maintain essential regional air services.”
Sounds Air would continue operating its core Cook Strait routes including Wellington to Blenheim, Wellington to Nelson, Wellington to Picton, Blenheim to Paraparaumu and Nelson to Paraparaumu.
Taylor said the continuation of these routes was good news, as “capacity and choice was important for travellers” and the airline provided an important freight service as well.
