Marjorie Cook
08 May 2020, 6:45 AM
Invercargill Airport general manager Nigel Finnerty is eager to see the return of passenger flights once the nation steps down to level 2 of the COVID-19 pandemic response.
Air New Zealand chief executive Greg Foran said today that flights between Christchurch and Invercargill would resume at Level 2, as the airline resumed around 20% of its usual domestic capacity (compared to pre-COVID-19 levels) during Alert Level 2. This would also include return flights between Queenstown and Auckland and Queenstown and Christchurch.
“We’ve been keen to start domestic air services as soon as practicably possible to support New Zealand’s economic recovery and connect family, friends and businesses. But the ramp up to higher frequencies will be a slow journey and even when we come out of Alert Level 1, all of our domestic destinations will see fewer flights and reduced frequencies. This is the harsh reality of closed international borders and a depressed domestic economy, with more Kiwis in unemployment and people watching what they spend,” he said.
He also cautioned that the airline would not be able to offer its normal cheapest lead-in fares.
“One-metre social distancing means we can only sell just under 50% of seats on a turboprop aircraft and just 65% on an A320. On that basis, to ensure we cover our operating costs, we won’t be able to offer our lowest lead-in fares until social distancing measures are removed.”
Additional routes and frequencies will be reintroduced back into the schedule as demand permits and once it is clear exactly when the country will be moving to Alert Level 2.
The return of scheduled flights is welcome news to Invercargill Airport general manager Nigel Finnerty.
Before COVID-19 restrictions began in March, the airport was operating an average of nine passenger or commercial flights in and out every day, including scheduled services to and from Christchurch, Wellington and Auckland.
“We really want flights to all these destinations but are realistic that it might take a bit of time for travel to get going again. We are expecting flights to resume in Level 2 and we’re working with Air New Zealand to understand the demand and schedule.
“We’re also setting up the terminal to ensure passengers can safely and confidently move through the airport in level 2. Physical distancing, washing hands and cleaning will be very important as we get back towards normal,’’ Mr Finnerty said.
Mr Finnerty said Invercargill Airport was “definitely feeling the impacts of no flights coming into the airport’’.
The Invercargill City Council-owned airport company had been in a healthy financial position at the end of the June 2019 financial year, reporting increased revenue to $5.38 million and after tax profit of $805,000.
Invercargill Airport Ltd’s annual report to June 30, 2019 showed the Invercargill City Council-owned utility was in a strong financial position and had been meeting its financial performance measures.
Passenger movements had increased by 4.6% to 321,000, and revenue had grown to $5.38 million (up from just over $5 million in 2018).
At year’s end the airport had delivered an after tax profit of $805,000 (up from $302,000 from 2018).
Operationally, 2018-2019 had been a busy year for the airport. Two A320 jet planes brought 340 passengers from Auckland to Invercargill for the Oyster Festival, the CAA renewed the Aerodrome Operators Certificate and work had continued on preparation of facilities for regular A320 jet flights from Auckland. The jet flights began as planned in August 2019.
The airport had a total wages bill of $698,000 in the year ending June 30, 2019, with total employment expenses reaching $718,000.
“Invercargill Airport, like most other travel and tourism businesses, has been hit hard by the restrictions we’ve had over the last month,” Mr Finnerty said.
“Our last Air New Zealand plane was in late March and since then we’ve only had medical and freight flights.”
“Stewart Island Flights have been operating taking supplies and freight to the Island six days a week. We did have a RNZAF Hercules come in halfway through the lockdown which was very exciting,’’ Mr Finnerty said.
The airport has been maintained during COVID-19 level 3 and level 4 so it is compliant and ready to go.
“Naturally this has impacted our revenue and we’ve put a hold on our capital projects and some of our non-essential major maintenance tasks. Getting scheduled flights going would limit the impact on the airport and allow partner businesses, such as the rental car companies and the café, to get back to work, Mr Finnerty said.
Meanwhile, Air New Zealand is asking customers with existing bookings who don’t intend to travel to please cancel their bookings and opt in to receive a credit via this link on its website or their booking agent to free up seats to allow others to fly.
Before making a booking, customers are also reminded to check the latest information on the travel and transportation section of the Government COVID-19 website and the COVID-19 hub on the Air New Zealand website.
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