Air NZ cars go electric

  Air New Zealand is buying 76 electric light vehicles, including 36 $80,000-plus BMW i3 cars for its sales force.

The airline says the switch to electric will save around 65,000 litres of fuel per year and it's creating what's believed to be the leading corporate electric vehicle fleet in New Zealand.

The BMW i3 was named New Zealand Car of the Year for 2015 and as well as being electric, it features a sustainable design with much of its interior and body made from the same carbon fibre as the fuselage of Air New Zealand's Boeing 787-9 Dreamliner fleet. They have a sticker price of $84,000 although the airline is likely to have got a fleet discount.

The airline is also purchasing 12 Mitsubishi Outlander plug-in hybrids for longer range trips and 28 Renault Kangoo Maxi ZE 100 per cent electric vans for use at airports. The Kangoo is not currently available in New Zealand making Air New Zealand the first local customer for this vehicle.

Air New Zealand chief executive officer Christopher Luxon says the fleet transition forms part of the airline's commitment to sustainability and carbon reduction across the business.

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Air NZ moves to electric car fleet

BMW i-cars production line

"Taking a leadership position in carbon management and reducing our emissions is a significant goal for us under our Sustainability Framework. We recognise the opportunity electric vehicles present both for New Zealand and our airline and we are making the most of the country's renewable electricity supply by transitioning our ground fleet off fossil fuels where we're able to."

The Air New Zealand fleet purchase is a signifcant boost for the electric vehicle sector here. Just over 1000 plug-ins have been sold here.

Transport Minister Simon Bridges said he was "incredibly excited" about the opportunities they provide for New Zealand.

"It's clear that EVs are the future and it's great companies like Air New Zealand recognise this. The benefits of increasing uptake of EVs are far-reaching. They reduce our reliance on imported fossil fuels, reduce fuel cost and enhance the efficiency of our renewable electricity networks."

The airline will get the first of its new electric vehicles later this month and aims to complete the fleet transition by the end of the year.

In addition to the introduction of electric vehicles, the airline has begun installing charging points at its key car parking sites to support the new vehicles. This is in addition to the charge points already installed at a number of the airline's customer parking facilities.

The airline is also changing over its airport ground service equipment to electric including golf carts and tractors. Where electric options don't currently exist the airline is working with Z Energy to purchase bio-diesel from its site under development in Wiri.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Wednesday, 16 March 2016

Airline competition 'hotter than ever'

Cathay Pacific has a strategic agreement with Air New Zealand for flights between Auckland and Hong Kong.

While capacity is surging among existing and new airlines which is keeping a lid on fares or pushing them down, New Zealand is on course to seek agreements to allow links to more countries and through different routes.

This country has about 70 Air Services Agreements in place and has been signing them at the rate of about 10 a year.

Transport Minister Simon Bridges said he was likely later this month to seek cabinet approval for a tranche of new deals.

It's added competition that we've got to face and we'll do that against other carriers from China and the US that we didn't have a few years ago.

Cathay Pacific country manager Mark Pirihi

"The new Qatar flight is a great example of the necessity of getting these agreements in place. As soon as we learned that Qatar was interested we moved heaven and earth to get an ASA in place."

Auckland Airport estimates Qatar's new daily service will deliver 189,070 seats to the route and contribute $198 million to the New Zealand economy.

Bridges said his government was "on a mission" to increase the number of air services argreements to help boost the economy and provide more options for New Zealand travellers.

A veteran of the New Zealand long-haul airline market says he's never seen it so competitive and it is set to heat up as the government seeks new deals that could lead to more services.

Cathay Pacific country manager Mark Pirihi said there had never been so many options for travelers amid fierce competition.

"It's just getting stronger and that's reflected in the amount of capacity coming into New Zealand."

His own airline is introducing the world's newest widebody plane to this market later this year but now faces competition from another Middle Eastern carrier, Qatar Airways, which will begin direct services from Doha to Auckland in December.

Already this year Emirates has started daily direct flights between Dubai and Auckland, Malaysia's AirAsia X is weeks away from flying from Malaysia via the Gold Coast to this country, US carriers United and American Airlines will resume flying across the Pacific to this country in the middle of the year and Singapore Airlines will fly from Wellington to its home port via Canberra late this year.

Pirihi has worked for Cathay for 25 years and said inbound traffic was driving capacity in the first instance but Kiwis' ingrained and growing love of overseas travel habits were also driving demand.

``It's added competition that we've got to face and we'll do that against other carriers from China and the US that we didn't have a few years ago."

Cathay, whose strong passenger yields from New Zealand operations have contributed to the airline's best annual results in five years, increased capacity between Hong Kong and Auckland over summer. supplementing year round daily services with a Boeing 777 aircraft.

Pirihi said the airline was now working on its plans for next summer when it would use the Airbus A350XWB on the Auckland route. It is on track to be the first airline flying to this country to use the revolutionary new plane - which has several of the same features as the Boeing 787 Dreamliner.

Cathay Pacific has a strategic agreement with Air New Zealand for flights between Auckland and Hong Kong.

While capacity is surging among existing and new airlines which is keeping a lid on fares or pushing them down, New Zealand is on course to seek agreements to allow links to more countries and through different routes.

This country has about 70 Air Services Agreements in place and has been signing them at the rate of about 10 a year.

Transport Minister Simon Bridges said he was likely later this month to seek cabinet approval for a tranche of new deals.

It's added competition that we've got to face and we'll do that against other carriers from China and the US that we didn't have a few years ago.

Cathay Pacific country manager Mark Pirihi

"The new Qatar flight is a great example of the necessity of getting these agreements in place. As soon as we learned that Qatar was interested we moved heaven and earth to get an ASA in place."

Auckland Airport estimates Qatar's new daily service will deliver 189,070 seats to the route and contribute $198 million to the New Zealand economy.

Bridges said his government was "on a mission" to increase the number of air services argreements to help boost the economy and provide more options for New Zealand travellers.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Monday, 14 March 2016

NMIT aviation programme receives world class certification

Nelson Marlborough Institute of Technology's (NMIT) aviation engineering course has become the first in New Zealand to receive a new, internationally-recognised certification.

The aviation industry has lobbied the government for over five years to adopt the 'Part 147' licence, an amalgam of the Civil Aviation Authority's (CAA) current operating requirements and European Aviation Safety Agency training which aligns New Zealand with international aircraft maintenance standards.

NMIT's manager of aviation Raewyn Heta said the new certification would impact the majority of the course's 200 students.

"Any aviation engineering training organisation in New Zealand delivering a curriculum leading to the award of an aircraft engineering licence must now hold a 147 certificate, so for our students it is another positive outcome for their qualification.

"New Zealand has been behind the aviation world by not providing a regulatory environment for aircraft maintenance training that aligns with international best practice."

Many businesses, some of them major international airlines, previously avoided New Zealand aircraft engineering graduates because of its different aviation standards, Heta said.

She said it was also likely to make the polytechnic's course more attractive to international students.

An Air New Zealand spokesperson congratulated NMIT on its Part 147 certification and said it was good news for the company's regional maintenance base in Nelson.

Stuff

ADELE REDMOND

Last updated 08:24, March 18 2016

Qatar Airways coming to NZ - confirmed

Qatar Airways has confirmed it will begin a non-stop, more than 18 hour service between Doha and Auckland - set to become the world's longest flight - on December 3.

The airline will operate the daily flights with a Boeing 777, the same aircraft rival Middle Eastern carrier Emirates uses for its new direct service to New Zealand, which launched last week and is currently the longest commercial flight available.

New Zealand travellers will be able to use the service to reach European destinations such as London via Doha, Qatar's capital.

At 14,534 km, the Doha to Auckland route is slightly longer than the roughly 14,200 km Dubai-Auckland journey.

The Qatar Airways service is expected to take up to 18 hours and 30 minutes, compared with up to 17 hours and 15 minutes for the non-stop Emirates flight.

Qantas operates a Sydney to Dallas/Fort Worth service which covers 13,800 km and takes almost 17 hours.

The longest flight operated by Air New Zealand is Auckland to Houston, which covers 11,933 km and takes 14 hours and 30 minutes.

Emirates was expected to launch a service to Panama City later this month, which would have been slightly longer than the non-stop Auckland-Dubai flight in terms of duration.

The Dubai-based airline, however, has reportedly put that service on ice so it looks like the Auckland route will remain the world's longest duration flight until Qatar Airways starts flying to New Zealand at the end of the year.

Qatar Airways announced another 13 new destinations at a major travel fair in Berlin today, including services to the Italian city of Pisa, Sarajevo in Bosnia, Finland's Helsinki and Marrakesh in Morocco.

"These new destinations are where our customers want to go, and where we see the most opportunity to provide a best-in-class experience at great value," said Qatar Airways chief executive Akbar Al Baker.

Christopher Adams

The Business Herald’s markets and banking reporter

Thursday, 10 March 2016

Air NZ does revenue deal with United

Air New Zealand and United Airlines have entered into a revenue sharing agreement.

Under the deal the airlines will work together to promote and sell both airlines' services between New Zealand and the mainland United States, including domestic feeder services in both New Zealand and the United State.

The revenue sharing deal is similar to that Air New Zealand has with Virgin Australia, Cathay Pacific, Singapore Airlines and Air China.

United Airlines will begin services from San Francisco to Auckland service on July 1.

Air New Zealand and United have worked together since 2001 coordinating closely on codesharing, frequent flyer programmes and distribution.

The revenue share agreement will deepen this cooperation, the airlines say.

Subject to United Airlines obtaining government approval, it will begin operating a three-times-weekly Boeing 787-8 Dreamliner service between San Francisco and Auckland in July, moving to daily services operated by a larger 787-9 aircraft in November.

Air New Zealand chief executive Christopher Luxon said both the airline and New Zealand's economy stand to benefit significantly from the alliance.

"The United States is New Zealand's third largest tourism source market, contributing almost a billion dollars to our economy in the past financial year," he said.

"We know this is just the tip of the iceberg though, with around 30 million Americans actively considering New Zealand as a holiday destination."

United Airlines vice chairman and chief revenue officer Jim Compton said United was very excited about its agreement.

"Together, United and Air New Zealand will offer customers more seamless connections between New Zealand and cities across the U.S. than any of our competitors."

Air New Zealand currently operates direct to five North American cities with daily services from Auckland to San Francisco, double daily services to Los Angeles, four services per week to Vancouver and Honolulu, and five services per week from Auckland to Houston, increasing to daily flights during the December/January peak period.

Once United begins operating its Auckland-San Francisco flights the airlines will operate complementary services on the route, with United's flights arriving into San Francisco in the early morning and Air New Zealand's flights arriving around midday.

United Airlines and United Express operate an average of nearly 5000 flights a day to 342 airports across six continents.

In 2015, United and United Express operated nearly two million flights carrying 140 million customers.

Rival carrier American Airlines will start services in competition from Los Angeles to Auckland in June.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Friday, 11 March 2016

Kiwi Regional Airlines plans to crowdfund $2 million for new plane

 

Kiwi Regional Airlines plans to raise up to $2 million through crowdfunding to buy a second aircraft.

The new aircraft would be a Saab 340 QC used for passenger and freight charters and as a backup for maintenance of its existing aircraft Saab 340A.

Last month the Hamilton airline cancelled flights after grounding the 34-seater aircraft for unscheduled maintenance.

While the Saab was out of action Kiwi Regional called in Air Chathams to run the service using its 50-seat Convair 580.

READ MORE: * Kiwi Regional Airlines plane grounded for repairs, Air Chathams steps in * Kiwi Air to test Taupo interest * Kiwi Regional Airlines announces alliance with Barrier Air * Kiwi Regional Air axes Queenstown to Dunedin flights * Kiwi Regional Airlines cancels flight, eyes second plane * Kiwi Regional Airlines not worried about having one plane, CEO Ewan Wilson says

The planned new aircraft would not be used to add capacity or new destinations.

Kiwi Regional launched in November and flies Hamilton, Nelson, Dunedin, Christchurch and Tauranga routes.

It cancelled a Dunedin-Queenstown service less than a month after launching.

Crowdfunding requires members of the public to donate money towards a project or business.

Some platforms allow pledgers to claim a stake in the project or company if the campaign successfully reaches its funding target.

Kiwi Regional chief executive Ewan Wilson said the fundraiser would be an equity crowdfunding campaign, meaning if the campaign reaches its target, pledgers would become shareholders.

No crowdfunding platform had been chosen.

"I find the idea of a community of New Zealand shareholders being a part of Kiwi Regional Airlines quite exciting," Wilson said.

There are eight crowdfunding platforms in New Zealand licensed by the Financial Markets Authority to let businesses sell shares to the public through their website

Wilson said having only one aircraft meant maintenance could be costly.

"When the aircraft breaks down we have to hire another one to be able to provide good customer service, that can be an expensive process to have only one airplane."

Vehicle importer and retailer 2 Cheap Cars originally owned almost a quarter of the airline but that was diluted as Kiwi Regional issued more shares.

2 Cheap Cars sold its remaining 10.4 per cent share in the airline to Andrew and Anne King of Hamilton.

King's investments include Kings Finance and Kings Cars. He is not a Kiwi Regional director or part of the airline's management.

More to come.

 - Stuff

JOHN ANTHONY AND KELSEY WILKIE

Last updated 10:47, March 7 2016

More Nelson jobs as Air Caledonie moves into Air NZ maintenance hub

The maintenance of New Caledonian aeroplanes in Nelson will mean 25 new jobs over the coming year has local bodies excited about opportunities for growth.

Air Calédonie became the first international customer of Air New Zealand's regional maintenance base on Sunday when its ATR42 aircraft arrived at the Nelson hangar, where Air New Zealand currently services its own Bombardier Q300 and ATR fleets.

Air New Zealand's chief operating officer Bruce Parton said the regional maintenance hub provides 187 engineering jobs, with 40 to 50 more jobs anticipated "as the third-party work comes on".

Air Calédonie will now undertake ten-year heavy maintenance for four of its aircraft in Nelson.

Air New Zealand spokesperson Anna Cross said the Nelson base was established with "a vision to make Nelson the preferred turboprob maintenance and overhaul facility in Australasia".

READ MORE: * Air New Zealand's flight attendant recruitment drive  * Air NZ has high hopes for Nelson hub * Air New Zealand Holidays stores closing * Air New Zealand flight diverted to Nelson Airport

About 50 local jobs were created when the maintenance hub opened in August last year, expanding on the 135 Air Nelson Engineering jobs already established.

The salaries for those jobs ranged between $80,000 and $120,000 and Cross said 25 upcoming engineering jobs would attract similar pay.

Nelson mayor Rachel Reese said she was thrilled at the news of more "well-paid, skilled jobs in the region".

"It's a big thing for Nelson. This is the type of employment we're really trying to attract so the regional maintenance base is a very important part of our community.

"Not only do we attract skilled employees to our region we also create exciting career pathways for our local young talent.  Alongside the new jobs is a focus on developing educational opportunities in aviation engineering."

Nelson Marlborough Institute of Technology [NMIT] director of marketing and international development Virginia Watson said NMIT offers the country's highest certification in aviation engineering outside of the Air Force.

"The whole industry is quite collaborative and it's a pretty exciting career for someone who is engineering minded. One thing we would like to see more of is school leavers going into that aviation engineering programme."

Watson said the fast-paced growth of Nelson Airport and skilled workers made the region an attractive area for aircraft maintenance, a sentiment echoed by Air Calédonie CEO Samuel Hnepeune.

"The close proximity of New Caledonia to New Zealand, together with the world-class facilities offered in Nelson and experienced turboprop engineers is a good proposition for our airline," he said.

 - Stuff

ADELE REDMOND

Last updated 17:49, March 8 2016

Nelson-Tasman tourism continuing to grow

" Recent summer statistics released by Nelson Tasman Tourism show strong growth in the region.

In December the total guests overnight increased by 7.7 per cent from the previous year, exceeding the national average of 4.7 per cent.

International overnight guests staying went up by 7.4 per cent, surpassing the national average growth by 6.2 per cent, while domestic guests increased by 7.9 per cent compared to national domestic growth of 3.8 per cent.

Nelson Tasman Tourism chief executive Lynda Keene said the statistics were encouraging.

"The fact we are exceeding national levels of growth at year-end December and the month of December is a good indicator of some of the region's successful marketing activities," she said.

The increase in airline competition at Nelson airport was also attributed to the boost in tourists to the region.

"Without a doubt, a key factor that has contributed to visitor growth has been Air New Zealand's increased marketing activities and the launch of new airline services; Originair, Kiwi Regional Airlines (KRA) and Jetstar." Keene said.

Originair began flying in August, KRA in October and Jetstar in December of last year.

"The region has received significant additional exposure by airlines with promoting Nelson as a new destination and we'll continue to work with them (airlines) to ensure the early growth trends with increased passengers will continue over the next twelve months," she said.

Official guest statistics for January and February won't be available for a few weeks but Keene said "on-the-ground indicators" from over the region seem to portray a successful couple of months.

The overall result is that yes, it is busier than last year," she said.

 - Stuff

TASHA LEOV

Last updated 12:01, March 4 2016

Demand could see bigger jet

Emirates is already eyeing the possibility of operating its new non-stop service into Auckland with an Airbus A380 super-jumbo, rather than the smaller Boeing 777-200LR that will be used at first.

Emirates is already eyeing the possibility of operating its new non-stop service into Auckland with an Airbus A380 super-jumbo, rather than the smaller Boeing 777-200LR that will be used at first.

By Christopher Adams

Emirates is already eyeing the possibility of operating its new non-stop service into Auckland with an Airbus A380 super-jumbo, rather than the smaller Boeing 777-200LR that will be used at first.

The Middle Eastern carrier's maiden non-stop flight from Dubai to New Zealand touched down at 10.33am yesterday.

In a last minute switch, Emirates decided to operate the inaugural flight with an A380 as a "special acknowledgement of the support" the airline has received from New Zealand. Subsequent services will be operated with a 777-200LR.

But Emirates president group services, Gary Chapman, said there was potential for the A380 to be used regularly on the non-stop route.

"As demand builds, and it's building very strongly, I can see a time when we have the A380 on it," said Chapman, who flew into Auckland on the inaugural service.

Emirates already operates three daily A380 services from Dubai into Auckland via Australia, as well as a daily Christchurch 777-ER service via Bangkok and Sydney.

Yesterday's special service means four Emirates A380s will be on the ground in Auckland for the first time.

Bigger jet on cards as demand on route builds, says airline.

The forward bookings have vindicated this decision. Gary Chapman, Emirates president group services (pictured)

Yesterday's inbound non-stop flight landed early, taking less than 16 hours to cover the 14,000km route.

But the return flight to Dubai - which left Auckland yesterday evening at 9.30pm - will take around 17 hours and 15 minutes, making it the world's longest duration flight until Emirates' first service from Dubai to Panama City later this month.

Chapman said Emirates was having discussions with Ohakea air force base, near Palmerston North, about the potential for its runway to be used as an "alternate" if A380 flights cannot land at Auckland. The current alternative is Christchurch, as Wellington doesn't have a long enough runway for the super-jumbos.

He said Christchurch was about 644km extra distance from Auckland, compared with 322km extra to Ohakea. "That means you have to carry extra fuel, and that has implications," said Chapman, a New Zealander who has been with the airline since 1989. "So if you bring that alternate closer then it makes the operation more viable [for non-stop A380 services]."

He said Emirates was already seeing strong demand for the non-stop flights to Auckland.

"The forward bookings have vindicated this decision," Chapman said. "By taking out Australia, you reduce the travel time by three hours and it enables people coming from Europe and the Middle East and Africa to have one stop into Auckland and vice-versa."

Emirates - the world's biggest long-haul carrier - has flown here for 13 years and its three daily A380 services have built its brand in New Zealand.

Christopher Adams

Herald

Thursday, 03 March 2016

Kiwi Regional Airlines plane grounded for repairs, Air Chathams steps in

 

Kiwi Regional Airlines Saab aircraft was replaced by Air Chathams older Convair 580 for a short time last week.

 Passengers have praised Kiwi Regional Airlines for the way it handled a grounded aircraft last week.

On Friday the Hamilton airline operator's only aircraft - a 34-seat twin turbo-prop Saab 340A - was grounded for unscheduled maintenance.

Kiwi Regional Airlines chief executive Ewan Wilson said there was a problem with a caution light used in pre-start procedures.

Kiwi Regional Airlines' Dunedin-Nelson and Nelson-Hamilton services were cancelled on Friday morning due to the grounding.

While the Saab was out of action Kiwi Regional Airlines called in Air Chathams to run the service using its 50-seat Convair 580.

"It's a stressful couple of hours at the office as you rejig things," Wilson said.

"Never seen an airline go out of their way to help, after a cancelled flight, like this before. Sorted us a new flight asap," Prinsloo said.

He said the service even beat that of Dubai airline Emirates.

Murray Horn congratulated the airline for finding "a mighty workhorse" replacement to keep passengers happy.

Wilson said Air Chathams ran most of Kiwi Regional Airlines' scheduled services on Friday and Saturday using its own pilots, cabin crew, engineers, fuel and catering.

"We just pay a sum and they run the service.

Passengers were offered a full refund, a next day flight or to be booked on alternative services.

Kiwi Regional Airlines would announce a new route network and schedule on Tuesday which would begin on May 14, Wilson said.

An announcement regarding a second aircraft would be made a few days later.

A second aircraft would join the fleet to provide back up to the existing aircraft and for charter services, he said.

It would not be used for extra capacity on regular passenger services.

 - Stuff

JOHN ANTHONY

Last updated 16:00, February 29 2016

Kiwi Regional Airlines announces new flights for Nelson

 

Increasing demand has seen Kiwi Regional Airlines put on extra flights from Nelson, including a new service to Christchurch and daily flights to Dunedin.

An extra flight will also be added to its Nelson to Tauranga route, which currently has two flights a week.

The new Nelson-Christchurch service will see Kiwi Regional Airlines (KRA) fly to the southern city twice a week.

Ewan Wilson was "keeping his cards close to his chest" about whether he had plans to get another plane.

KRA chief executive Ewan Wilson said it was an exciting time for the region.

"This is great news for Nelson. We can offer Christchurch for the first time. Nelson asked for a Christchurch service, the Nelson people asked and we delivered," he said.

Among the other changes KRA announced was a daily return flight between Nelson and Dunedin.

It will also  fly four times a week between Hamilton and three times a week between Tauranga and Nelson. It started flying the Tauranga to Nelson route twice a week last month.

The new services will start on May 14.

The changes are being made due to high demand in regional centres, especially flights from Tauranga to Nelson.

"In the last six months, we have sold well over 10,000 seats, and we will continue to look at how we can best meet regional New Zealand's needs," Wilson said.

The airline has one 34-seat twin turbo-prop Saab 340A.

Wilson said he was "keeping his cards close to his chest" about whether he had plans to get another plane, and said further announcements about the fleet would be made in the next week.

Nelson's central location meant the airline considered the region an important location.

"Nelson is very much our hub ... We are providing regional air services that the travelling public is demanding," Wilson said.

"We are pleased that residents in many regional centres have responded so well to our airline."

KRA started operating in October flying routes between Nelson, Dunedin and Hamilton. It cancelled a route from Dunedin to Queenstown early on.

KRA  also announced this year that it had partnered with Barrier Air which flies routes to Auckland, Kaitaia, North Shore and Great Barrier Island.

Increasing regional flights into Nelson will also help to boost and improve tourism for the district.

Nelson Tasman Tourism chief executive Lynda Keene said the expansion of the airline's regional air services was good news for Nelson.

"The fact that in the first six months of operation they have been able to evaluate which routes are working best and increase the frequency is really encouraging," Keene said.

"The Hamilton and Bay of Plenty catchment area is quite huge, it is really underrated, I think doing the direct links to and from Nelson is really going to grow for them."

Other airlines including Jetstar and Originair started flying to the regions last year.

 - Stuff

TASHA LEOV

Last updated 11:31, March 1 2016

Airport’s best ever month

Nelson Airport has recorded its busiest month ever, with a whopping 22 per cent increase on passenger numbers from the same time last year. That saw 78,509 people either fly in or out of the airport during January and follows on from a record December the month before. But it wasn’t the only good news the airport announced this week, 2015 was also a record year, with 778,384 passengers passing through the airport.

It beat 2014 by more than 10,000 passengers.

Three new airlines to the region is the major reason for the huge jump in passenger numbers, but it is putting pressure on the airport’s infrastructure.

Plans for a new airport terminal are progressing well for a 2018 opening, but Nelson Airport manager Rob Evans says they couldn’t wait that long for a car park upgrade due to the terminal’s heavy use.

“The front of the terminal is really quite dangerous at the moment. There’s a lot of mixed traffic going on, with people trying to jostle around. There’s a high volume of people trying to cross the crossing to the short term car parking and it’s actually becoming a real health and safety issue.”

So the current short term parking will become more space for rental cars, where demand has dramatically jumped. The short term parking will move to a section of the current long term parking section.

A dedicated zone for public drop offs – separate to where taxis and shuttles pick up – will be created.

Rob says the other major factor for the change was the “outdated” ticket system.

“It’s constantly breaking down and it’s become untenable for us. It already well past its useful life, it’s a constant source of frustration and complaints by customers.”

He says the new ticketing system is “top of the range” and will be recycled when the new terminal is built.

Plans for that new terminal are progressing well, says Rob, with the expecting opening date still set at September 2018.

The new terminal will be a complete rebuild and see the car parks jump from the current 650 to 1200. Rob says the huge increase in passengers this summer highlights the need for a new terminal.

“Even before this summer the new terminal was certainly on the radar and it is a project that certainly needs to be done. The growth we’ve had this summer has accentuated that need.”

The change in car parking will also see a change in the prices. For those parking for a week or more the rates will drop but one hour parking rates will jump from $1 to $1.50.

Nelson Weekly

Andrew Board

February 24th, 2016 10:47 am

How they'll shave time off longest flight

It'll be a long time in the air - but Emirates says its new Auckland - Dubai non-stop flight will use new technology and variable routes to make the trip as quick as possible.

By Grant Bradley

Emirates Airline's ultra-long flight from Auckland to Dubai will use smart planning and technology to shave as much time as possible off the 14,000km flight.

While the service will be one of the longest air routes in the world by distance, Emirates will be using flexible routes, which can vary by day, taking advantage of tail winds and avoiding head winds to reduce the time in the air.

The technology, combined with the elimination of an en-route stop in Australia, could shorten the time to Auckland by up to three hours.

It will also result in increased fuel economies - an environmental focus for Emirates.

The airline starts its first non-stop service from Dubai to Auckland on March 1, with the longer duration return leg departing the next day.

The new non-stop service will be operated by a Boeing 777-200LR and should typically take just under 16 hours from Dubai to New Zealand and 17 hours, 15 minutes in the other direction.

"Emirates continues to invest in innovative technologies, and we utilise best practices in optimising our flight planning systems, finding the best routes that take into consideration weather and current conditions to ensure we save time, fuel and emissions, while never compromising on the safety and comfort of our passengers and crew," said Geoff Hounsell, Emirates' vice president flight operations support services and air traffic management.

The non-stop flight will have a complement of 13 cabin crew and four pilots, allowing for rest periods.

Emirates has eyed the non-stop flight to New Zealand for about two years.

Two hours prior to flight departure, the most optimal route is chosen, but can still be updated during the flight. At all times there is a contingency flight plan, so if an unexpected event arises during the flight, there is an alternative routing available.

The non-stop flight will have a complement of 13 cabin crew and four pilots, allowing for rest periods.

New flexible route options have been a focus for the airline and Airservices Australia and Airways New Zealand have been key partners.

An aerial view shows Dubai international airport, home to the national carrier Emirates Airways. Photo / Getty Images

The majority of the Boeing 777-200LR flight will be in Australian-managed airspace, where Emirates has worked with Airservices Australia for the past decade to optimise routes, utilising the technology which will be applied on the direct Auckland route.

"The organised track system - AUSOTS - is well-proven and extending that programme so that it is specific to the Auckland-Dubai route will have significant benefits, without impacting the operations of other aircraft going to Australia," said Geoff Hounsell. Airservices Australia controls 11 per cent of the world's airspace.

"A number of our air traffic control and environmental specialists have worked with Emirates' flight planning team to help find them the most optimal east and west-bound routes which will link the flight into our existing Flex Tracks and user preferred route (UPR) zones." said executive general manager, air traffic control, Greg Hood.

Emirates' Boeing 777-200LR can fly up to a range of 15,555km with full passenger load of 266 - eight in First Class, 42 in Business Class, and 216 in Economy Class.

Airways New Zealand will guide the Boeing 777-200LR through the first and last hours of these ultra-long range flights.

Chief operating officer Pauline Lamb said Airways would offer new fuel-efficient arrival routes into Auckland and a high degree of flexibility using very efficient 'user-preferred routing', including the ability to review and change flight paths during the flight.

Airways manages more than 1.2 million air traffic movements per year within 30 million square kilometres of airspace across New Zealand, the Pacific Ocean and Tasman Sea.

Emirates' Boeing 777-200LR can fly up to a range of 15,555km with full passenger load of 266 - eight in First Class, 42 in Business Class, and 216 in Economy Class.

Emirates is the world's biggest long haul airline and has a fleet of 249 aircraft, including 74 double-decker Airbus A380s and 155 Boeing 777s, among them 10 Boeing 777-200LRs.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Wednesday, 24 February 2016

Airport boss confident NZ can sustain tourism growth

Auckland Airport's financial fortunes are closely aligned with that of the overall tourism industry and it spends around $10 million to $15 million annually supporting tourism marketing for the country.

Auckland International Airport chief executive Adrian Littlewood said New Zealand still has plenty of capacity to grow tourism from its record levels achieved last year.

Visitor arrivals to New Zealand rose 10 percent to a record 3.13 million last year, and tourism has become the country's number one export earner, overtaking dairy which is in the doldrums. The sector has an aspirational goal of hitting $41 billion in total revenue by 2025, up from the $29.8 billion achieved in 2015.

Littlewood said while the goal is "quite a significant step up", it is achievable providing the industry works cohesively on growing the infrastructure to support that sort of rise in both volume and quality of international visitor who will stay longer and spend more. "We need to get it right."

Key opportunities identified in the 2025 tourism strategy are high value Chinese, international students, business events, cruise visits, emerging markets, and promoting Christchurch as a gateway and destination.

Auckland Airport's financial fortunes are closely aligned with that of the overall tourism industry and it spends around $10 million to $15 million annually supporting tourism marketing for the country while also lifting capital expenditure to deal with anticipated growth at the airport, the country's national gateway.

It signed a new memorandum of understanding in November with Tourism New Zealand to maximise the value of New Zealand's overseas visitor market, building on previous partnerships between the two. They'll focus on jointly identifying what's needed to boost visitor numbers from new and emerging markets and how best to invest resources.

Traditionally Auckland has been described as being at the bottom of the world but the world is round and Auckland is actually in the middle of a direct line between Tokyo and Buenos Aires.

Littlewood is critical the industry was too slow to respond to fast growth out of China and initially spent money in the wrong areas. In order to reach its target, New Zealand has to spread more visitors throughout the year rather than just in the peak summer months to ensure higher quality visitors enjoy the experience, he said.

Auckland Airport's own aspiration is to become a southern Asia-Pacific hub and Littlewood said it has taken a further step on that path with a stronger than expected period of expansion in air services. Six new airlines have commenced or announced services to Auckland in the past 12 months.

Achieving that desired hub status relies on a partnership with another international airline carrying a large population through Auckland onto South America or another destination, Littlewood said.

"Traditionally Auckland has been described as being at the bottom of the world but the world is round and Auckland is actually in the middle of a direct line between Tokyo and Buenos Aires."

Ireland, which is also a small country with 4.5 million people, has 8.6 million visitors a year and I don't think the people of Ireland feel those visitors are taking over the country.

A simple comparison against peer group countries suggests New Zealand still has capacity to grow, though it will require ongoing and close coordination between government and industry, he said. New Zealand is ranked number 67 in the world by visitation per capita and 107th by visitation per square kilometre.

"There are plenty of opportunities for this country but we will have to be receptive," Littlewood said. "Ireland, which is also a small country with 4.5 million people, has 8.6 million visitors a year and I don't think the people of Ireland feel those visitors are taking over the country."

Cheap fuel prices, more efficient modern aircraft, and a lower kiwi dollar are making long-haul flights to New Zealand more attractive to those people who have always wanted to visit here but thought it too expensive, he said.

In one example of where change is needed, Littlewood said there is no nationwide group view on hotel development. Providing detailed information on visitor forecasts to hotel developers would give them "a real handle before they put their money at risk," he said.

Improved visitor numbers have already led to commitments for a 20 percent increase or around 2,000 new hotel rooms in Auckland alone while the number of Airbnb properties in Auckland grew 260 percent, or 1,000 rooms, in the past year.

Auckland Airport has a 20 percent stake in the Novotel Hotel at the airport and 100 percent of the Ibis hotel. It's also just chosen a preferred partner, which it's yet to name, for a premium third hotel it will own with construction due to start later this year and will start planning next year for a fourth budget hotel.

Herald Monday, 22 February 2016

Air New Zealand to 3D print its own aircraft interior parts

Air New Zealand is embracing the future of aircraft interiors by successfully producing 3D printed components for its Business Premier cabins.

The airline has been working with Auckland University of Technology to manufacture the fold down cocktail trays that form part of its award winning Business Premier seat using innovative 3D printing - also known as additive layer manufacturing technology.

Air New Zealand Chief Operations Officer Bruce Parton says the move into 3D printing is one of many innovative moves the airline currently has underway.

"Aircraft interiors are made up of tens of thousands of parts. Not only can't we hold stock of every replacement part we might need, we often only require a small number of units which can be really expensive to produce using traditional manufacturing methods and can involve frustrating delays while a replacement part is delivered," Mr Parton says.

"A big advantage of 3D printing is that it allows us to make cost-effective lightweight parts ourselves, and to do so quickly without compromising on safety, strength or durability."

Air New Zealand hopes to start installing the 3D printed cocktail trays on aircraft in the coming weeks, pending final regulatory approval.

Mr Parton says Air New Zealand is exploring opportunities to introduce further 3D printed components. "It seems the possibilities are limited only by our imagination."

24 February 2016

Issued by Air New Zealand Public Affairs ph +64 21 747 320

Qantas announces up to $500m share buyback on record $921m half-year profit

Qantas will return $500 million to shareholders after lower fuel prices, strong demand for international flights and ongoing cost cutting placed the airline on course to report a record full-year profit.

The carrier on Tuesday recorded its best first-half underlying profit before tax of $921 million, at the upper end of its guidance range, and unveiled a $500 million on-market share buyback program.

The airline also unveiled plans to roll out free high-speed Wi-Fi on Qantas domestic flights, with trials starting by the end of 2016, and said it would build a new lounge at London Heathrow to open in the first quarter of 2017.

The airline's bumper results were assisted by $448 million of savings from the lower fuel price, as well as $261 million in cost savings as part of its three-year, $2 billion transformation plan.

"If it was [only] due to fuel, every airline in the world would be benefiting as much as Qantas," Qantas chief executive Alan Joyce said of the results, noting his airline was about three times the size of Virgin Australia but 11 times more profitable in the first half.

"There is something more going on than just fuel. And that is transformation."

Mr Joyce said transformative initiatives during the first half included consolidating call centres, reconfiguring Boeing 737s to add more seats and updating the airline's revenue management system.

New routes

Alongside its results, Qantas also said it would keep two of its Boeing 747-400s slated for retirement in 2016 flying longer than expected because of strong international demand and lower fuel prices.

"The international business has performed the best since the global financial crisis and probably close, if not the best, in its history," Mr Joyce said.

"We are seeing the new routes we've been adding across the board exceeding expectations."

Sondal Bensan, an investment analyst at Qantas shareholder BT Investment Management, said the international capacity growth would be positive because it was in response to demand.

"Judging by the [high] load factors of Singapore Airlines and Cathay Pacific to this region, there has to be demand spillage," he said, referring to the high percentage of seats filled by those airlines in recent months. "Qantas can fill that void."

The airline will recruit new pilots for the first time since 2009, as a result of new positions that will open when it receives its new Boeing 787-9 aircraft from 2017.

Qantas will boost international capacity 9 per cent in the second half, with domestic capacity poised to increase a more muted 2 per cent, amid the ongoing downturn in the resources sector. A $50 million fall in revenue from the resources sector is forecast in the second half.

The airline said its full-year fuel bill was expected to be no more than $3.4 billion and would be $3.3 billion at current forward Australian dollar prices. That compares with its last update in October, when it said its fuel bill was expected to be $3.61 billion, with a worst case of $3.85 billion.

Merrill Lynch analyst Matthew Spence said he believed consensus expectations for a $1.69 billion underlying profit before tax could be upgraded by 5 to 10 per cent as a result of the lower fuel bill.

Best way to return capital

Chief financial officer Tino La Spina said Qantas expected to complete its $500 million share buyback during the current half and would then take another look at capital management alongside the full-year results in August.

He said the airline had only $200 million of franking credits and just less than $2 billion of tax losses remaining from when it was in financial strife two years ago, so it would be "a while" before it resumed paying taxes.

Mr Joyce said the decision to buy back shares was taken because it was the most effective way of returning capital to shareholders, rather than a sign of the company's view on the future share price.

Qantas shares closed 20¢, or 5 per cent, lower at $3.79 on Tuesday.

"It is hard to say why there would be such a negative reaction, given there will likely be further profit upgrades to consensus and further capital management at the [full-year results]," Mr Bensan said. "The only new information that could be perceived by some as negative is the company calling out some profit headwinds into the second half in the form of revenue pressure from cycling the World Cup Cricket [which boosted demand in 2015] and the continuing drag from weak resources demand."

The airline's shares have risen 29 per cent over the past 12 months, compared with a 15.7 per cent fall in the benchmark S&P/ASX 200 index over the same period and a 6.3 per cent fall in the share price of rival Virgin Australia, which is a relatively illiquid stock.

Citi analyst Anthony Moulder said the announcement of the $500 million buyback underpinned his view that the stock remained undervalued given the growth profile and high returns.

"We continue to see upside to our $4.90 target price," he said.

February 23, 2016

Business Day

Jamie Freed

Air NZ profit more than doubles to a record $338m in six months

Air New Zealand has seen profit more than double thanks to a rise in the number of passengers, lower jet fuel prices and changes to its fleet.

The airline posted a record net profit of $338 million for the first six months of the year, up 154 per cent. Operating cash flow was up 43 per cent at $541m.

"We are delighted to start off 2016 with such a stellar performance," chairman Tony Carter said.

"Air New Zealand's profitability, healthy free cash flow and solid balance sheet reflect the successful execution of the strategic plan by CEO Christopher Luxon and the executive team, which is focused on sustainable and profitable growth."

READ MORE: * Air New Zealand 'investigating options' for inflight wi-fi * Air New Zealand uses 3D printers to make seat parts  * Air NZ signals big drops in domestic and international airfares

The airline expected to post a full year profit before tax of at least $800m.

Last year, Air NZ's pre-tax earnings were $474m.

Air NZ's result comes days after a bullish Qantas reported a record six-month profit and plans to expand.

Luxon said the airline aimed to provide more routes and competitive prices in New Zealand and the wider region, "combined with modern aircraft offering better operating economics",

Domestic demand was up 10 per cent, and the Tasman and Pacific Island markets continued to perform strongly for the airline, Luxon said.

"New Zealand continues to be not only a destination that is in big demand for Australians but it is also a gateway to North America, South America and the Pacific Islands for travellers from Australia.

"This traffic is adding to the strength of Air New Zealand's services to these markets.

"In recognition of the opportunity, we will continue to build our presence in Australia," he said.

Air NZ's 25.9 per cent stake in Virgin Australia and its share of Christchurch Engine Centre's earnings contributed $15m and $10m respectively for the six months.

The airline will pay shareholders an interim dividend of 10c per share on March 18.

 - Stuff

JOHN ANTHONY

Last updated 09:43, February 25 2016

Praise for airline's first flight to Bay

 

Tauranga's newest airline partner, Kiwi Air, marked its first flight out of the city bound for Nelson yesterday with a plane full of passengers.

Arriving half an hour earlier from Nelson at 11.35am, the 34-seater SAAB340A aircraft taxied down the runway without fanfare.

The first passengers off the plane were Nelson resident Sheree Seyb, and her 19-month old daughter Edan, who were met by her sister Aleisha Turner, and son Cruz, 4, from Whakatane.

Ms Seyb, who was visiting her sister for two weeks, said the journey and service had been "absolutely brilliant" .

"It's Edan's first flight ever and she was so excited. I will definitely be flying with this airline again for sure. Not only was it a cheaper trip but it also cut the usual travel time by quite a bit."

Departing passengers Eddie, 95, and Ethel Smith, 91, from Brookfield said they were off to visit their daughter who lived in Motuoeka and also to spend time with a sick relative.

"At our age taking this direct flight is ideal, otherwise we would have to fly to Auckland, or alternatively to Wellington, and wait around for our connecting flight. It's also a lot cheaper and far more convenient," Mr Smith said.

Also heading to Nelson were Mount Maunganui couple Tenielle and Brendon McHugh, their 12-week-old daughter Lily and 4-year-old son Jackson.

Mr McHugh, who was employed as a project manager at Comvita, said he was "Nelson born and bred" and they were heading back to his hometown to visit family.

Frequent flyers to Nelson, the couple said they snapped up the special flight deal and were taking the chance to also show off the newest member of their family.

Read more: Close vote sees pilot project for village given go-ahead

"We wanted to go down anyway and the timing couldn't have been better for us. We will probably fly back to Nelson more often now. It's great," Mrs McHugh said.

Mr McHugh said the direct flight made it far easier with a young family and also reduced the travel time and costs considerably.

"Previously it cost us the price of two flights. This flight is perfect for us."

Kiwi Regional Airlines chief executive Ewan Wilson, who was at Tauranga Airport to greet departing and arriving passengers, said it was "an incredibly huge day not just for Kiwi Air but also for Tauranga".

People are telling me they're loving it, which is what we hoped for. For us, very clearly, Tauranga deserved more capacity.

Ewan Wilson

Mr Wilson said he was thrilled to have added Tauranga to the airline's network, as it was part of the golden triangle when it came to economic hubs.

Sales of seats on the twice-weekly flights to Nelson and on to Dunedin had been "excellent".

"Tauranga is performing very well for us against all our other routes, which is fantastic," he said.

Mr Wilson said the feedback from passengers could not have been better.

"People are telling me they're loving it, which is what we hoped for. For us, very clearly, Tauranga deserved more capacity.

"Our experience highlights the need for affordable, direct, inter-regional air services in New Zealand, and today vindicates our decision to add the Bay of Plenty as one of our key regions."

Mr Wilson said Kiwi Air could never compete with Air New Zealand flying the Tauranga to Auckland, Wellington or Christchurch routes.

"But it's fair to say we are looking at how to add another 400 flying hours a year capacity to our existing network, which may include adding capacity to our Tauranga flights."

Mr Wilson said that could mean a second midweek flight from Tauranga to Nelson.

"Ultimately it's a board decision, but I'd like to see an announcement by May 1."

Tauranga Airport is set to receive a $4.5 million upgrade later this year to make space for the increasing number of passsengers flying in and out of the airport.

Kiwi Regional Air Tauranga flights:

* Flights to Nelson depart at 12.05pm every Tuesday and Saturday, flying on to Dunedin on Tuesday after a 25-minute stopover.

* On Saturdays, Kiwi Air operates a Nelson-Tauranga-Nelson return service also around the middle of the day.

* Airfares: Tauranga-Nelson direct start from $99 one-way

* Tauranga-Dunedin tickets start at $169 one way.

Conditions apply to fares

For more information visit flykiwiair.co.nz

Bay of Plenty Times

Sandra Conchie

Wednesday, 17 February 2016

St George Illawarra Dragons touch down in Nelson ahead of Warriors trial match

The St George Illawarra Dragons have arrived into Nelson early ahead of Saturday's preseason match against the New Zealand Warriors, hoping the five-day "bonding" camp in the top of the south will help build better team cohesion ahead of the NRL.

The extended 26-man squad, featuring stars like Benji Marshall and Josh Dugan, and some who won't even take to Trafalgar Park on Saturday, arrived at Nelson Airport to little fanfare on Monday afternoon.

While Saturday's match is just a trial and one final hit-out before the season proper, Dragons coach Paul McGregor said the team will benefit from the five-day camp that is highlighted by a match-up against a Warriors side he believes will make the top four.

"This will be a our last week away for the players to really enjoy each other's company and bond together before we go into round one," McGregor said.

READ MORE * McGregor: Warriors have bought well * Luke fires Warriors over Titans * Star halves to collide in Nelson

"A week is a long time away from your family so this will provide that opportunity for the players to become closer and start to learn about each other's habits that little bit more.

"I believe the players will come away from this with a very tight-knit bond."

Dragons winger Jason Nightingale, who spoke highly of the Warriors' offseason recruitment, said the team was looking forward to bringing the NRL buzz to a region that has never experienced first grade rugby league before.

"It's always great to come to these new places. Part of preseason and our game is to be able to share it in new areas and I know there's a few of the Kiwi boys who have been to Nelson before and there's a lot that haven't so we're looking forward to the experience," he said.

7000 tickets have been sold already for Saturday's game, which kicks off at 5pm.

The Warriors are expected to arrive in Nelson later in the week and have a range of school visits planned.

 - Stuff

PHILLIP ROLLO

Last updated 20:04, February 15 2016

Nelson Airport car park set for $400,000 revamp

Nelson Airport's parking system is getting a spruce up after its "terrible" dated technology frustrated many customers.

The airport will invest $400,000 in its car parking facilities by improving its payment system and moving all short term and drop off parking to the the current main car park.

"We've got a lot of people who get frustrated with the machines," Nelson Airport chief executive Rob Evans said.

Ticketless parking will be available by allowing people to insert their credit cards into a machine as they enter the car park and then use the same credit card as they exit the car park.

New machines will include technology for cash, eftpos, credit card and paywave payments.

Nelson man Murray King said the current machines were "terrible" and time-consuming.

"After travelling all day you finally get here and then have to spend time in a queue," he said. He expected the new machines to make a big difference.

The new facilities will result in a price increase in short term parking to $1.50 per hour. The carpark's daily maximum is $10.

Evans said the increase was to compensate for $250,000 worth of new equipment for the new technology.

The long term car park's daily maximum would remain at $8 per day and the weekly maximum for long term car parking will reduce from $56 per week to $50.

Other changes to the road in front of the terminal would also "alleviate congestion" and improve safety as work on the new terminal commences, Evans said.

The road will have an island in the middle with a stopping lane either side - one for taxis and one for public drop-off's.

"That takes away all these people hanging around in front of the terminal," he said.

Nelson City Taxis driver Julia Young said it was currently very difficult to pick people up in front of the terminal when the airport was busy.

"Sometimes you can't even park - it's just really hard at the moment," she said. She hoped the changes would make it easier for taxis to pick up customers.

The current pay and display carparking located in the middle of the terminal car park will be converted to rental carparking.

The carparking improvements would be for the interim and the new terminal design, set to be complete in 2018, would include more car parking space.

The airport has had a big year with three new airlines and an all time high of 80,200 passengers through its doors in December 2015 alone.

"As demand continues to increase, there's a need to improve customer safety and provide modern technology to enhance the customer experience," Evans said.

Economic Development Agency chief executive Bill Findlater said he was encouraged by the airport's decision to upgrade the parking facilities now instead of waiting two years for the completion of the new terminal.

"It's important that our airport infrastructure can service the increased number of visitors, so it is great news that Nelson Airport is responding quickly to improve its car park," he said.

Work on the car park will begin Monday February 15 and is expected to be completed in the first week of March.

- Stuff

Press play to view the Nelson Mail video below.

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