Nelson Airport stakeholders put forward case to keep aircraft engineering facility

Monday, 11 May 2020

Local politicians say moving the Air New Zealand maintenance facility out of Nelson would be a huge economic blow to the region.

The ball is in Air New Zealand's court following discussions with Nelson Airport stakeholders over the future of the airline's heavy maintenance facility.

Nelson Airport stakeholders have met with Air New Zealand management to discuss the possibility of retaining the company's heavy maintenance facility in Nelson.

Nelson Airport chairman Paul Steere said while options were put on the table to allow the facility to stay in Nelson, it would still be 'quite a challenge' for Air New Zealand to do.

'They still have work to do with their consultation process, but I did get the impression the savings they could make (by moving the facility) were of some magnitude.

* Coronavirus: Air New Zealand proposal to close Nelson heavy maintenance facility 'devastating'

* TDC asks if region needs to become squeaky wheel to get Government funding

Planes at Nelson Airport going nowhere during the Covid-19 lockdown.

'What we were offering was quite small by comparison of what they were talking about.'

The mayors of Nelson and Tasman, along with the chairman and chief executive of Nelson Airport, talked with Air New Zealand representatives in Nelson on Thursday about the airline's proposal to move its heavy maintenance facility from Nelson Airport to Christchurch.

If the Nelson facility is closed down, it has been estimated about 100 jobs would be lost along with $10 million a year in regional income.

Nelson Mayor Rachel Reese said it had been a constructive meeting, and felt the concerns of airport stakeholders were well listened-to.

An Air New Zealand Q300 aircraft lands at Nelson Airport (first published in May 2020).

She said while alternative options had been explored, the details could not be discussed while the airline was in consultation with its employees.

Reese said she encouraged Air New Zealand not to make any hasty decisions regarding the facility, and reiterated that airport stakeholders were open to negotiation to keep engineering services in the region.

'There is considerable change in the aviation sector, but also a degree of uncertainty about how that will play out over the next six, 12 and 18 months.

'Given the long-term investment into the engineering hub in Nelson, it deserves consideration and time to plan for its future.'

Reese said the broader issue to consider was the impact on the wider regional economy and importance of similar facilities to provincial New Zealand.

As of Monday, 16,000 people had signed Willie Snowden's petition, appealing to Regional Economic Development Minister Shane Jones to intervene.

Reese said while there were constitutional issues around the ability of ministers to participate in Air New Zealand's consultation process – making direct Government intervention unlikely - discussions with the Transport and Regional Economic Development Ministers were ongoing to help them understand the implications of the change for Nelson.

'There is that bigger question about what we want the regions of New Zealand to look like. These are key jobs that provide apprenticeships and career paths for young people,' Reese said.

'With our region's interest in research development and innovation, we see these skilled jobs as critical for our future.'

Nelson Airport chief executive Rob Evans said airport stakeholders had 'got a good hearing' at the meeting.

'[Air New Zealand] have been getting a lot of really good feedback and ideas from their own organisation and staff as well, so hopefully they will take them on board.'

Tasman mayor Tim King said while the discussions had been productive, it was too early to tell what way the decision would go.

King said the meeting made clear how hugely important the facility was for the region, but also the massive challenges being faced by the aviation industry due to Covid-19.

'The ball is in their court now.'