Prices up $50 each way
Sounds Air says Taupō-Wellington route marginal
Flights from Taupō to Wellington are to become more expensive, with the only airline servicing the route saying it is marginal without a price increase.
Sounds Air announced this week it would be putting up prices by $50 each way between Taupō and Wellington and to and from Westport from the capital. Prices for the Taupō route were already sitting at between $250 and $400 each way.
Sounds Air chief executive Andrew Crawford said they used a dynamic pricing model, but the combination of increased fuel prices, maintenance costs and supply chain issues had been a “triple-whammy” for the aviation industry and had put particular strain on those routes with tight margins.
“While we continue to experience strong demand for our services, the escalating costs have meant that, as a company, we have been subsidising the Wellington to Taupō and Wellington to Westport sectors since Covid-19 hit.”
He said fuel prices alone have added over $2.5 million in costs for the company in the last three years.
He said discussions had been held with local authorities and business leaders to ensure the ongoing viability of the routes.
“We recognise the importance of air connectivity for these regions, so we continue to constructively and pro-actively engage with key stakeholders.”
“All options are being considered and include potential coinvestment into regional infrastructure. Sounds Air is confident that, with the vital support of both public and private sector partners, it will achieve the long-term sustainability that both the company and these communities need.”
Taupō Mayor David Trewavas said the flight to Wellington was popular with businesspeople and a vital connection.
When Air New Zealand pulled out of the route in 2015, Taupō District Council struck a deal with Sounds Air to secure the route by offering to guarantee the first three seats on any flight for the first six years. Trewavas said they had never had to pay for a seat in those six years.
“Sounds Air’s flights are vital for connecting our business community and our visitors to Wellington.
I’ve flown with them plenty of times over the years when council business takes me to Wellington and can’t speak highly enough of how efficient, friendly and reliable their service is.”
He said with events like the Repco Supercars ITM Taupō 400 coming up, there would be plenty of demand for air travel in and out of Taupō.
Air NZ provides two return flights a day from Taupō to Auckland, with fares ranging from about $100 to $400 each way.
Taupō Airport manager Wayne Wootton said Air NZ was doing quite well with its regional services and prices had been competitive lately.
He said the airport had been hosting an increasing number of private aircraft and they were already booked out for the Supercars event on April 19-24.
The airport terminal can accommodate two commercial aircraft and two private planes at the same time but Wootton said they were looking to free up space to park aircraft.
A new $9.72 million Taupō Airport Terminal building was opened last year and the industrial zone around the airport was expanding.