Editorial: Air NZ snub a huge blow

Air New Zealand is charged with finding the balance between providing a service to New Zealanders and returning a profit.

It's not surprising Whakatane mayor Tony Bonne is angry and disappointed at Air New Zealand's decision to pull its service from the town.

The company announced it would close services from three towns - Whakatane, Kaitaia and Westport - and shut down subsidiary Eagle Airways as part of a revamp of regional services.

As our national carrier and a large company, Air New Zealand is charged with finding the balance between providing a service to New Zealanders and returning a profit.

Whatever the rationale behind the decision, and I'm sure it makes good business sense, you simply can't be happy as the mayor of a town which has jointly invested $180,000 upgrading its airport, to find out it's become something of a white elephant.

Though, I imagine there are plenty of other reasons for Mr Bonne to be upset. The decision to pull out is a huge blow to locals, as well as those right across the Eastern Bay of Plenty. Whakatane is the gateway to much of the region, including popular holiday spots like Ohope, and having direct Auckland flights is a huge incentive for those looking to invest locally.

Of course, we can't ignore the benefits to Rotorua. Many passengers who would have otherwise used Whakatane's airport will now fly to or from Rotorua.

And Air New Zealand's plans to increase capacity to Rotorua and reduce fares will be a huge bonus for locals and visitors.

There could also be downstream benefits for bus services picking up the cancelled routes or getting people to and from bigger airports.

But all of that's little comfort to a town that's effectively been told it's not big enough.