Whanganui District Council turns down Air Chathams’ fuel price aeronautical fee waiver request

Chief executive Duane Emeny says there is no risk of Air Chathams pulling out of Whanganui. Photo / NZME

Whanganui District Council has declined Air Chathams’ request to temporarily waive aeronautical fees as the airline battles rising fuel costs.

Air Chathams chief executive Duane Emeny said he was disappointed by the decision as a 100% waiver would have saved the company about $20,000 a month.

Last week, the airline announced that from April 20 it would reduce flights into Whanganui by 22%, after the Middle East conflict doubled its monthly fuel costs from $500,000 to $1 million.

It had already added a $20 base surcharge to each flight segment.

Emeny said Whakatāne District Council also declined to waive fees.

Air Chathams will cut its Whakatāne flights by 45% from April 20.

“In the grand scheme of things, [a waiver] is not going to solve the problem. It’s just helping the business at a time when it needs it,” he said.

“It’s really just a token of support. In my opinion, it’s the right thing to do.”

He said a waiver agreement would only have been in place “while the jet fuel price is at this escalated level”.

Airport chief executive Sarah O’Hagan said the council had carefully considered the request.

“At this stage, we are not in a position to provide that support,” she said.

“Whanganui Airport operates as a joint venture with the Ministry of Transport, and aeronautical fees are set by the Minister.

“Any changes to those fees would require central government approval and are not something that can be implemented quickly at a local level.”

If fees were waived, the airport would still be required to return the revenue to the joint venture, which would be unbudgeted expenditure, she said.

Duane Emeny says the waiver would only have been in place “while the jet fuel price is at this escalated level”.

“That means the cost would need to be covered by the council and, ultimately, by ratepayers.

“While we recognise the challenges Air Chathams are facing, the council is not in a position to subsidise individual businesses in response to these pressures.”

Last September, Regional Development Minister Shane Jones and Associate Transport Minister James Meager announced up to $30m in loans would be available to support at-risk regional routes through the Regional Infrastructure Fund.

But Whanganui MP Carl Bates said that funding was “more general, in terms of support”.

“There is a whole range of different industries, people and families who are being really challenged by the fuel crisis right now,” he said.

“We absolutely appreciate that as a Government.

“But the specific support that has been provided so far has been that really targeted, temporary and timely support provided for working families.”

The Government announced last month that about 140,000 families with children would receive an extra $50 a week through the In-Work Tax Credit.

Emeny said there was no risk of Air Chathams pulling out of Whanganui.

“It is super-critical to our business.

“Once this fuel crisis comes under control, we want to be able to scale up again.”

He said Whanganui losing eight flights a week would have an impact, but “business hour services” would still operate.

“Those are the flights that people really need, if you’re wanting to do a day’s work in Auckland or you want to connect to an international flight.

“We’ve been very careful to make [flight reductions] as light a touch as we can.”

O’Hagan said the council was committed to working constructively with Air Chathams and would continue to advocate for sustainable regional connectivity.

“This situation also highlights the importance of a consistent, national approach to regional aviation, rather than differing responses at a local level,” she said.

Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily Whanganui District Council.