LEAD STORY: Bay step closer to Australia

LAWRENCE GULLERY
The reality of transtasman aircraft servicing the Bay came a step closer when the Government announced today it had approved corporatisation of Hawke's Bay Airport (pictured).
The agreement was signed by Transport Minister Annette King, Finance Minister Michael Cullen and the mayors of Hastings and Napier, Lawrence Yule and Barbara Arnott.
It means ownership of the airport business will be transferred to a new airport company which the councils and the Crown will be shareholders of.
Plans can move ahead to extend the airport's runway to 1900m, allowing Boeing 737 and Airbus A320 jets to operate in Hawke's Bay, opening up the region to the lucrative east coast Australian tourism market. It was hoped the runway would be completed before the 2011 Rugby World Cup in New Zealand.
Hastings Mayor Lawrence Yule said a board would be appointed in the next few months and work on luring a transtasman carrier would come next.
He was aware of the problems faced by Invercargill's international airport - which had taken a $4 million loan to extend its runway to 2210m - but had so far failed to attract international flights.
Palmerston North shut its doors to transtasman services more than a year ago, propelling Hawke's Bay's case to be the East Coast's main provider for international connections.
``It's about long-term planning,' Mr Yule said. ``There are new jets being built all the time, 100-seat jets that can use 1900m runways.'
The Hawke's Bay runway extension could cost $9.2 million which would be funded by a $5 passenger levy.
Mr Yule said targeting flight services to Australia's regional areas may be the go rather than trying to link into the busier centres of Brisbane, Sydney and Melbourne.
Pacific Blue and Polynesian Blue Airlines marketing and communications manager Phil Boeyen said the company would consider Hawke's Bay if the runway extension could accommodate Virgin's new 787-800 aircraft.
``However, the economic business case is the key factor in making a decision on where to fly and this would have to stack up,' he said.
Air New Zealand had a monopoly on services to Hawke's Bay Airport at the moment but said it neither supported or opposed a runway extension.
The national carrier company said domestic and transtasman markets are ``of insufficient size to sustain the cost of jet services to Hawke's Bay'.