Air Chathams makes ‘confident’ move despite economic head winds

Monday, 25 March 2024

The ATR, which will start flying between the centres from April 7, is one of two in the airline’s fleet.

Air Chathams to fly its flagship ATR-72 aircraft on the Auckland and Whanganui route.
The bigger plane has 68 seats, double the capacity of the Saab 340 which currently flies between the centres.
The airline has been impacted by the cost of living downturn.

Passengers who fly between Auckland and Whanganui will soon enjoy a bit of a plane glow-up as Air Chathams readies to introduce its ATR-72 on the route.

Its flagship aircraft has 68 seats, double the capacity of the Saab 340 which currently flies between the centres, and chief operating officer Duane Emeny said the airline has a lot of confidence in the route.

Chatham Islander Val Croon talks to Stuff writer Bess Manson about fossilised shark's teeth found on the shores of Te Whanga Lagoon.

“We have actually added in the larger capacity aircraft (50-seat Convair 580) in the past on the weekend peak i.e. Friday afternoons, Sunday afternoon/evening, and Monday morning,” Emeny told Stuff Travel.

“It was very popular then and we are confident the demand still exists today – even in a period of lower business confidence and consumer discretionary spend.”

Like many companies, Air Chathams hasn’t been immune from the cost of living issues, with bookings taking a hit.

“Last year was very soft across the board especially for our passenger services to Chatham and Norfolk Islands, however both did improve somewhat in the New Year.

“Our mainland North Island routes connecting into Auckland from Kāpiti, Whanganui, Whakātane are on average 20% down from last summer 22/23, we think that is impacted by general cost of living affecting consumer discretionary spend.”

Another factor which is weighing on Emeny is the ongoing stoush between Auckland Airport and airlines.

The cost for the upgrades at the airport will mean increased passenger charges, and Emeny said it would cause a huge impact for the small service.

“We are concerned that the increasing costs of airport use in Auckland and other centres will stall … demand recovery as airlines are forced to flow cost escalations onto consumers.”

Behind the scenes, it’s been a busy couple of years for the family-owned airline.

There’s been a lot of rebuilding including “significant heavy maintenance activity on our ATR and Saab fleet”.

“We want to operate reliable, quality services over the next 12 months to ride out the tougher economic environment and be well placed to grow again when demand returns, hopefully around mid-2025.”

But for now the immediate focus is on the aircraft upgrade between Auckland and Whanganui. The ATR, which will start flying between the centres from April 7, is one of two in the airline’s fleet.

It normally flies the Chatham Islands routes, as well as some private charters countrywide. Emeny said the airline has reshuffled the Chathams schedule to free the ATR up for the Whanganui schedule between Friday and Monday each week.