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Home / Whanganui Chronicle

Russell Bell: Hollow tactic by Air NZ

By Russell Bell
Whanganui Chronicle·
1 Jun, 2016 10:23 PM3 mins to read

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NOW YOU SEE THEM ... An Air New Zealand Bombardier Q300 arrives at Whanganui Airport in February - these planes finally replaced the smaller Beech 1900Ds. Now the airline has withdrawn from the city.PHOTO/FILE

NOW YOU SEE THEM ... An Air New Zealand Bombardier Q300 arrives at Whanganui Airport in February - these planes finally replaced the smaller Beech 1900Ds. Now the airline has withdrawn from the city.PHOTO/FILE

JUST over three weeks ago I wrote an article encouraging locals to use the Air New Zealand service out of our airport.

The article followed Air NZ's decision to reduce the number of flights to Auckland - inexplicably, 21 days later we find ourselves on the receiving end of a "commercial decision", with the national carrier ending its Whanganui service in July.

While it is a bitter pill to swallow, it would be slightly easier if Air NZ was a 100 per cent privately owned company or if all of its shares were in the hands of investors.

The thing is, this is not the case. At the time of writing, 51.91 per cent of its shares are owned by the Crown.

Why? Well, wander around the company's head office and say "Ansett Australia", and you will probably still see executives go white with terror.

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Without the New Zealand taxpayer - you and me - there would be no Air NZ. And yet the company pulls the trigger on retrenchments of service without what appears to be much consideration for the impact on the communities it leaves behind.

Now it's our turn and I'm unhappy.

I learned about the decision to withdraw at lunch on Tuesday as a leader in our community was going in to bat to try to change their minds.

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Subsequently, I have learned that our MP Chester Borrows and our mayor Annette Main were also working hard to achieve a result for Whanganui. That result comes in the form of Air Chathams Ltd - welcome, and the very best of luck to you.

However, for Air NZ (a company that declared a $327 million after-tax profit last year) the spin that "this wasn't a commercially viable route" rings pretty hollow.

And the hollowness resonates deeper when you hear the multiple comments that flights in and out of Whanganui were always full (which was also my experience).

I suggested to one of their managers this week that the consultation with our community had been non-existent - especially given that we have moved from reduced flights to "see ya later" in less than four weeks.

Maybe had there been more of a dialogue and a collaborative approach from them (or a stay of execution) we could have rallied the community to fill the planes.

It would have been a tough ask because the variety of flights available from Palmerston North would have been tempting for locals.

But I believe that with the assistance of Whanganui & Partners, the Chamber of Commerce and the business community alone we could have presented a compelling case for retention of the service. Alas, it appears this was not even on the airline's radar.

And I think the reason for that is that in Jetstar (ref: Qantas) you have a formidable competitor with a much bigger fleet and capacity to discount significantly, so the movement of the fleet from here is a tactical decision in the "war" for bums on seats. Air NZ will deny this, of course.

So, Air NZ, can I suggest that you change your name to "Air Main Centres of New Zealand".

I really loved your service and was proud to be associated with your brand - but you really didn't give us a chance to save the Whanganui service.

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** __ Russell Bell is a local business consultant and a board member of the Whanganui Chamber of Commerce.

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