Covid-19 plan clips company’swings

Palmerston North Airport, which early last month was expecting to clock more than 660,900 passengers through the terminal by the end of June, is virtually deserted.

All Air New Zealand flights have ceased, the car park is empty and planning for the next three years has become little more than a crystal ball-gazing exercise.

Airport company chief executive David Lanham said most efforts were focused on how to weather the downturn for the rest of this year and to the end of the next financial year.

The terminal building and control tower were closed, with just a skeleton staff on duty while managers worked from home.

The only regular flights in and out were the two evening Boeing freighter services on week nights.

The airport remains open for medical flights and on standby for charter or repatriation flights Air New Zealand operates for the Government.

Lanham said there was no firm information about when scheduled services might resume or at what levels. ‘‘We are busy planning for the ‘new normal’ in terms of passenger volumes and aircraft activity, although at this early stage it’s difficult to predict just what ... we can expect.’’

Lanham said the company’s diversification into activity apart from collecting landing fees, such as development of the Ruapehu business park, gave a ‘‘modest’’ source of revenue as a buffer against massive losses of income.

Forecast income of $11.78 million for the year had already been expected to drop by $2.52m as passenger numbers slumped last month. It could also slash the value of the company’s dividend to the city council, which last year was $685,000.

The company was assuming worst-case operating conditions until at least the end of the year.

However, the long-term outlook remained positive, Lanham said, with potential growth in domestic air services, freight and logistics once Kiwirail went ahead with its transport centre, and as the new Manawatu¯Hawke’s Bay highway was built.

The company’s planned $15m terminal upgrade would still be needed and the business park would continue to be developed.

The company had applied to the Government’s ‘‘shovel-ready’’ fund for help paying for the terminal building and for a range of improvements.