Palmerston North Airport's rapid growth in travellers

Palmerston North Airport chief executive David Lanham

Passenger traffic sky high

Palmerston North Airport has experienced rapid growth in leisure and business travels within the past two years.

Passenger volumes have grown 38 per cent since January 2016, equivalent to an additional 175,000 passengers a year.

Palmerston North Airport chief executive David Lanham says passengers using the airport for the 12 months to June 2018 hit an all-time record of 652,000.

"Palmerston North Airport never used to have the capacity or airfares to attract families or couples going on holiday, with people opting to drive to Wellington or even Auckland to fly overseas," said David.

"The increase in locals and regional residents using Palmerston North Airport as a gateway to Auckland for international holidays is really noticeable, and because the cost of living is so affordable in Palmerston North, family trips overseas are common."

He said upgraded airport facilities including the opening of a world-class Air New Zealand regional lounge, valet parking, a new express café on the ground floor, and the lowest car parking prices at any airport in the lower North Island have further increased the popularity of Palmerston North Airport among leisure and business travellers.

He also identified strong competition on the Palmerston North-Auckland route as another factor which has driven growth.

The increase in visitors through the airport is also a highlight in a broader data recently published by the Central Economic Development Agency (CEDA).

In the report, transport industry proves to be an important contributor to the Manawatū economy, accounting for $186 million of overall GDP, a 3.5 per cent rise in the year to March 2018.

CEDA chief executive Linda Stewart also spoke highly of this development.

"The increase at the airport is great to see and Palmerston North is a transport hub and gateway to seven other districts.

"It's imperative that CEDA continues to work closely with industry leaders across the transport sector, including the airport and airlines to support Manawatū growth and value proposition of what the city and region have to offer," said Linda.

On the other hand, by way of diversification, David noted that Palmerston North Airport is now focusing on the development of Ruapehū Business Park located on Airport Drive.

"The business park will ultimately include a motel, a suburban retail centre, light industrial and aviation related activities.

"To date the largest investment by the airport company has been in the state-of-the-art Massey School of Aviation facility."

With stage one due for completion in August, stage two involves the relocation of the aviation school's academic staff from Massey University's Turitea campus to the site on Airport Drive.

"As the third major airfreight hub in New Zealand the airport company will also be focusing on facilitating further growth in airfreight activities based at the airport," said David.