Regional airline leaders met in Wellington during the AIANZ conference to discuss solutions to the industry’s most pressing challenges, including high fuel prices and the future viability of regional air services.
Air Chathams Chief Executive Duane Emeny proposed that New Zealand consider adopting a public service obligation (PSO) model used in other countries, under which the Government would define essential airline services and run a tender process. Emeny said a PSO would not mean the Government funding an airline year-round, but would provide communities with greater certainty. He noted that successful PSO models internationally have clear expectations of airlines and operate on an open book basis.
Sunair flight operations manager Dan Power said regional carriers were under significant financial pressure due to high and uncontrollable operating costs, describing current Government support as helpful but insufficient to address the underlying problem. He said some regional carriers were now in survival mode, with high fuel prices increasingly becoming the norm.
Pilot Mahanga Maru of Air Ruatoria highlighted the vulnerability of East Coast communities, noting that roads are frequently washed away during severe weather. He said the local community had launched a Givealittle page seeking to raise $1 million to seal the Ruatoria airstrip’s grass runway, improving resilience for the region.
The AIANZ conference concluded on the day of these discussions, with fuel prices, CAA reforms and skills shortages among the key issues addressed throughout the event.