Coronavirus: Two years at least for partial Covid-19 domestic flight recovery, says air boss

Wednesday, 29 April 2020

Demand for air travel in New Zealand may take as long as two years to return to even 60 per cent of the pre-pandemic level, according to the chief executive of the Airways Corporation of New Zealand.

Graeme Sumner made the gloomy forecast as he backed proposals by Airways, which runs the country's air traffic control services, to reduce services across seven regional airports in New Zealand, including Rotorua, Hawke's Bay, Gisborne, New Plymouth and Invercargill.

'The recovery of demand for air travel nationally is expected to be slow and may take up to two years to return to just 60 per cent of pre-pandemic levels with border controls expected to be in place for some time,' Sumner said.

'Airways charges the airlines for using our services in New Zealand airspace, including at the airports. The dramatic reduction in airline flights due to Covid-19 now makes delivering our services at the seven regional aerodromes unviable as there are so few flights from which we can recover our fees.'

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Airways, which runs the country's air traffic control services, to reduce services across seven regional airports in New Zealand, including Rotorua.

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Airways NZ chief executive Graeme Sumner said demand for domestic flights would take up to two years to even return to 60 per cent of post-pandemic levels.

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Queenstown Mayor Jim Boult said that while the tourism hotspot would be unaffected by the air traffic proposals, he was taking a more 'cautiously optimistic' stance than Sumner, and that his prediction was overly pessimistic.

He cited the possibility of a trans-Tasman 'bubble', the opening of ski fields and said accommodation providers he had spoken to in the tourist town had been taking bookings for July already.

'I'm sure tourism operators will be putting together some very attractive packages working with the airlines to get people here.'

Queenstown Lakes District Mayor Jim Boult said he thought the domestic flight forecast too pessimistic, especially as Kiwi's were likely to holiday at home.

Boult also said he believed domestic tourism could capture some of the cash traditionally spent on overseas travel.

Rotorua Mayor Steve Chadwick, however, has hit back at the proposals saying the move to cut air services would jeopardise efforts to revive the city's tourism sector and economy post Covid-19.

She was seeking support from Government to prevent the loss of air traffic control services, including lobbying Prime Minister Jacinda Ardern.

Chadwick's stance has been backed by Tim Barrow, director and chief pilot at Volcanic Air and one of the last pilots to take off from Whakaari with injured tourists in the wake of the December eruption.

Asked whether he believed reduced air traffic control services could impede economic recovery, Barrow simply said 'I think it will'.

'The sooner we can get people here [Rotorua], the sooner tourism will increase.'

Barrow said Airways had 'provided a wonderful service over the years' but that any reduction in service was 'not going to help'.

'I think the mayor is correct.'

Volcanic Air director and chief pilot Tim Barrow, who helped fly Whaakari eruption survivors off the island, said he believed reduced air traffic control services could impact recovery plans for Rotorua.

He also said, however, that the aviation industry faced something of a 'chicken and egg' situation - do services need to resume for tourists to eventually return, or does tourism demand need to happen to force operators to boost routes.

'That's a question for Air New Zealand, and any other airline that aspires to fly to Rotorua.'

In a statement released to Stuff, Air New Zealand said it was operating a limited domestic service under level 3 restrictions, with most regional services suspended.

Rotorua Mayor Steve Chadwick said plans to reduce air traffic control would hamper plans to revive the tourism sector and wider economy.

The company said it backed Airways review of its services, and was 'well versed in safe flying procedures to uncontrolled aerodromes with operations to five of our regional ports, Taupō, Timaru, Kerikeri, Hokitika and Whangarei, already managed without control tower support.'

Chadwick, however, said she believed the airport was 'crucial' for economic recovery, and that lessening of air traffic control services would jeopardise that recovery.

'Our economy is already on life support and if this goes ahead it will have a direct and significant impact on local tourism businesses that will further undermine confidence at a really critical time,' she said,

'Recovery across New Zealand will require us all working together. This move by Airways is premature and will hamper Rotorua's recovery by removing air connectivity.

Rotorua Airport will be 'crucial' to the city's recovery, Mayor Steve Chadwick said.

'We have a huge job ahead of us to position Rotorua for an effective economic recovery and our airport has a crucial role in that. However, it can only do that if it can continue to operate as a safe, effective airport – that requires air traffic control.'

Sumner said consultations were ongoing over the proposals and 'no final decision has yet been made', but they had to reduce their costs by 30 per cent to meet the 'emerging reality of the aviation sector'.

'As a first step, the outcome of our consultation with staff is expected in May and will determine the next steps we take with the airports.'

Sumner also said their focus was backing the recovery of the country's aviation industry 'by ensuring our services are safe, affordable and appropriately matched to the reality of the aviation sector now and in the future.'

He said removing cost barriers for airlines the proposals would help 'preserve connectivity and support economic growth'.

He also noted the seven regional airports under review had seen air traffic levels 'consistently low before the Covid-19 pandemic'.

'Prior to Covid-19, there were an average of just 12 passenger or commercial flights into and out of Rotorua Airport each day.'

Barrow, however, said he remained optimistic despite the 'unsettling times'.

'We believe there will be a recovery and we intend to be here and here in the future too.'