Regions struggling to maintain aviation links amid soaring costs

Some regional airlines say they’re just months away from selling more aircraft and cutting flight routes.

Both Sounds Air and Air Chathams claim calls for support continue to be ignored despite six years of conversations with ministers.

Sounds Air Chief Executive Andrew Crawford told 1News even though passenger demand was up, the cost to run regional airlines had never been higher.

“One of the biggest hurts is parts, maintenance parts have skyrocketed.” He said. “A part we used to pay $26,000 for is now $72,000.”

Air Chathams chief operating officer Duane Emeny said several service providers that didn’t want to put their prices up during the pandemic had now done so.

With more than 100 years of combined experience, both airlines picked up routes Air New Zealand had abandoned.

“When Air New Zealand pulled out of Wellington to Taupō, and Blenheim to Christchurch, we stepped into these routes.” Crawford said.

But, because of increased financial pressure, Sounds Air had now cut Taupō and Westport flights.

Crawford feared essential services such as the one between Blenheim and Christchurch could be next.

“I think about 42% of that market is healthcare so it’s people flying up and down to Christchurch for treatment, day surgery, radiotherapy and chemotherapy.”

Marlborough Mayor Nadine Taylor said it was a critical transport route for the region.

“It’s not practical to set out in the middle of winter on a four-hour drive if you’re needing hospital treatment” she said.

Air Chathams and Sounds Air wanted the government to step in and called for a concessionary loan scheme.

“These are debts that will be paid back. So, it’s access to capital to maintain the service level you have now and to enable that further growth” Emeny said.

Crawford said discussions had been going on for six years but claimed calls for help had fallen on deaf ears.

“We’ve discussed it with many ministers. They’ve all agreed at what point does someone start listening.”

In a statement to 1News, Associate Minister for Transport James Meager said, “the Government is currently considering a range of options to address regional connectivity concerns and improve competition in our aviation sector – but are yet to make any decisions.

"This includes whether access to government concessionary loans would be the right thing to do."

But Crawford feared, if nothing changed in the next few months, the airline would have to cut essential services and sell further aircraft to survive.

By 1News reporter James Fleury