Jones’ clash with airline intensifies

Air New Zealand has hit back at Regional Economic Development Minister Shane Jones’ criticisms of the company, saying it would ‘‘always act independently of the Crown’’.

The strongly-worded statement from Air NZ chairman Tony Carter is in response to Jones warning the company it needed to stop cutting regional flights.

Prime Minister Jacinda Ardern defended Jones’ comments and said ‘‘ministers, particularly with a regional focus, will have an opinion’’.

‘‘That doesn’t mean that we have any ability or intent to take away the independent decisionmaking of a business like Air New Zealand,’’ she said.

Her comments came after Jones delivered a blunt warning to Air NZ’s regional affairs manager, Ian Collier, at the Bay of Islands Airport near Kerikeri on Friday.

Jones told Collier: ‘‘don’t keep closing down regional air links. And take that message to your supervisors’’.

Jones is furious about the announcement earlier this month that the airline is ending flights to the Ka¯piti Coast, which comes after flights to Kaitaia were axed in 2015. Jones’ comments to Collier were made at an event where the Government announced $1.75 million towards the $4.75m cost of

"Any appearance of a lack of commercial independence is viewed seriously by the Air New Zealand Board." Air NZ chairman Tony Carter

building a new terminal near Jones’ Kerikeri home.

Carter has written to Minister of Finance, Grant Robertson, reinforcing that the airline will always act independently of the Crown, regardless of the fact it had 51 per cent shares in the airline.

‘‘Any appearance of a lack of commercial independence is viewed seriously by the Air New Zealand board and is ultimately potentially damaging to the interests of all shareholders, including the Crown,’’ Carter said.

Robertson said Air NZ will make decisions about regional airlines and he didn’t think ‘‘anybody will be surprised Shane Jones is advocating strongly for the regions’’.

He said the concerns about the reduction of regional flights are not new and the Government will continue to work on helping the regions ‘‘thrive’’.

Jones is encouraging mayoral leaders to approach the Government with ‘‘solutions’’ and he wants to see a policy that ensures flight connectivity in the regions continues.

Air NZ should ‘‘put their money where their mouth is’’ when it comes to supporting provincial providers, Jones said.

‘‘I mean the sad thing is whilst they’re a brand promoting New Zealand to the rest of the world, in respect of servicing ... it’s not good enough.’’

Jones said regional New Zealand got better treatment from second-hand car dealers than Air NZ.

Deputy Prime Minister Winston Peters said there wasn’t the same ‘‘political oversight’’ for Air NZ as other state-owned enterprises because it’s 49 per cent privately owned.

‘‘The people on the board were put there by the previous Government and you’d think they’d be looking at New Zealand’s total interests across the country, including the regions.’’

National’s regional economic development spokesman Paul Goldsmith was reluctant to weigh in on Air NZ’s decision despite the National Party having a petition to keep the Ka¯ piti flights going.

‘‘Obviously you’d expect the local member to be advocating vigorously for his local community. I’m just saying that every commercial industry needs to operate on commercial lines,’’ Goldsmith said.