Long haul for flight demand to take off
Demand for air travel in New Zealand may take as long as two years to return to even 60 per cent of the pre-pandemic level, according to the chief executive of the Airways Corporation of New Zealand.
Graeme Sumner made the gloomy forecast as he backed proposals by Airways, which runs the country’s air traffic control services, to reduce services across seven regional airports in New Zealand, including Rotorua, Hawke’s Bay, Gisborne, New Plymouth and Invercargill.
‘‘The recovery of demand for air travel nationally is expected to be slow and may take up to two years to return to just 60 per cent of pre-pandemic levels with border controls expected to be in place for some time,’’ Sumner said.
‘‘Airways charges the airlines for using our services in New Zealand airspace, including at the airports. The dramatic reduction in airline flights due to Covid-19 now makes delivering our services at the seven regional aerodromes unviable as there are so few flights from which we can recover our fees.’’
Queenstown Mayor Jim Boult said that while the tourism hotspot would be unaffected by the air traffic proposals, he was taking a more ‘‘cautiously optimistic’’ stance than Sumner, and that his prediction was overly pessimistic.
He cited the possibility of a trans-Tasman ‘bubble’, the opening of ski fields and said accommodation providers he had spoken to in the tourist town had been taking bookings for July already.
‘‘I’m sure tourism operators will be putting together some very attractive packages working with the airlines to get people here.’’
Boult also said he believed domestic tourism could capture some of the cash traditionally spent on overseas travel.
Rotorua Mayor Steve Chadwick, however, has hit back at the proposals saying the move to cut air services would jeopardise efforts to revive the city’s tourism sector and economy post Covid19. She was seeking support from Government to prevent the loss of air traffic control services, including lobbying Prime Minister Jacinda Ardern.
Chadwick’s stance has been backed by Tim Barrow, director and chief pilot at Volcanic Air and one of the last pilots to take off from Whakaari with injured tourists in the wake of the December eruption.
Asked whether he believed reduced air traffic control services could impede economic recovery, Barrow simply said ‘‘I think it will’’. He also said, however, that the aviation industry faced something of a ‘‘chicken and egg’’ situation – do services need to resume for tourists to eventually return, or does tourism demand need to happen to force operators to boost routes.
In a statement released to Stuff, Air New Zealand said it was operating a limited domestic service under level 3 restrictions, with most regional services suspended.
The company said it backed Airways review of its services, and was ‘‘well versed in safe flying procedures to uncontrolled aerodromes with operations to five of our regional ports, Taupo¯ , Timaru, Kerikeri, Hokitika and Whangarei, already managed without control tower support.’’
Sumner said consultations were ongoing and ‘‘no final decision has yet been made’’, but it had to reduce its costs to meet the ‘‘emerging reality of the aviation sector’’.
‘‘As a first step, the outcome of our consultation with staff is expected in May and will determine the next steps we take with the airports.’’
Sumner also said its focus was backing the recovery of the country’s aviation industry ‘‘by ensuring our services are safe, affordable and appropriately matched to the reality of the aviation sector now and in the future.’’
He said removing cost barriers for airlines in the proposals would help ‘‘preserve connectivity and support economic growth’’. He also noted the seven regional airports under review had seen air traffic levels ‘‘consistently low before the Covid-19 pandemic’’.