Air New Zealand chief executive Nikhil Ravishankar suggested government intervention during economic downturns to support smaller centres. Photo / NZME
Air New Zealand chief executive Nikhil Ravishankar suggested government intervention during economic downturns to support smaller centres. Photo / NZME
There is firm support from Whakatāne’s mayor for state subsidies of regional flights.
Air New Zealand’s new chief executive has signalled on RNZ’s Checkpoint the Government might have to step in to keep flight services to smaller centres going.
Nikhil Ravishankar said itwould be a “situational subsidy” when the economy was not doing well and demand was low.
Air New Zealand left Whakatāne about a decade ago when it shut down Eagle Airways.
Until a recent Government loan scheme, Air Chathams flights to and from Auckland were at risk as well.
Nándor Tánczos advocated for the Government to step in on the basis that airports were critical lifelines for communities such as Eastern Bay of Plenty. Photo / Diane McCarthy
Tánczos told Morning Report the council had to draw a line with its own support for Air Chathams, which included a loan and relief for landing fees.
But he said it was not the job of councils to subsidise businesses.
“These are really critical lifelines for communities like ours, but they have to make sure it doesn’t just go to Air New Zealand but it goes to small airlines like Air Chathams.”
Tánczos said Tauranga and Rotorua were about an hour away and Whakatāne Airport served people across Eastern Bay of Plenty and up the coast.
“It’s critical, it’s a critical connection for us,” he said.
The mayor said a Government subsidy did not have to be permanent and could be linked to a proper business case and treated as help during hard times.
“We haven’t had a business-friendly flight which allows our local business people to get up to Auckland or to other cities at a reasonable hour,” he said.
