Published HBT 20 Sept 2016
I spotted a piece of great news recently embedded in an advertisement by Hawke’s Bay Airport Limited for two new management positions. These new jobs may or may not be good news in themselves and for the moment it doesn’t matter because in the general background about the airport was the revelation that passenger numbers were up 90 000 or 19% year on year.
It’s unlikely the airport has ever experienced this sort of growth before and of course there is essentially just one reason for it happening, and that is Jetstar. Jetstar started flying to Hawke’s Bay on December 1st last year and have added 135 000 extra seats a year all of them between Napier and Auckland. Whilst Air New Zealand’s media announcements are always vague they seem to be claiming to have added another 35 000 seats. Whether this increase is spread across all three of their Hawke’s Bay routes or just flights to Auckland is unknown.
We can assume the year on year period referred to is the 12 months to 30 June 2016 the airport balance date. So effectively we have five more months of the Jetstar effect and therefore could end up with perhaps 130 000 extra passengers by the end of this year.
This is fantastic but unfortunately there is no research on exactly who all these extra passengers are. Some will be on business, others on holiday or visiting friends and family and there may even be a few genuine tourists with no connections here. My cousin used to drive down every couple of years but now she can afford to visit every couple of months and I am sure many other people are similarly able to travel by air now that the price barrier of our previously outrageous fares has been removed.
This is great news for Hawke’s Bay because at last we are starting to move into the 21st century. However had our Mayors not been so obstructive and their councillors so apathetic we might have been in this position ten years ago. The airport board also lacked vision and commitment, preferring the easy option of building more car parks. Chairman Stuart McKinley was the only exception but was not reappointed by the Mayors possibly because he looked like being successful. For the record I have opposed the appointment of all the other council directors because I think they lack the stuff we need to move our great region forward.
In fact the airport story is a graphic example of how Hawke’s Bay has ended up at the bottom of economic rankings for much of the last decade. We have far to many elected representatives and their various appointees willing to sit on their rumps rather than dong the hard yards. Back in 2004 when I first became involved in the airport issue both Qantas/Jetstar and Pacific Blue were providing domestic services. To attract them to Hawke’s Bay required a runway extension because these companies then employed jet only fleets. Estimated cost was around $5 million and this was said to be too risky. Yet around the same time the Mayor of Napier had no trouble blowing $18 million on the museum extensions whilst the Mayor of Hastings spent $15 million refurbishing the Opera House which is now requires a further $11 million plus, for earthquake strengthening. The $5 million for the runway extension was a pittance and was eventually funded by the airport at absolutely no cost to ratepayers. The Museum and the Opera House together have yet to attract a fraction the number of additional patrons the airport has gained in just one year. The Museum and the Opera House have cost ratepayers well north of $40 million and need millions more each year to keep operating. Remember also the Mayor of Hastings wanted to spend $24 million on a velodrome and still hopes to use $5 million of ratepayers money for a new CBD hotel. Instead of gobbling up ratepayers money the airport now pays the council owners an annual dividend.
For the record the two Mayors surrendered governance control of the airport to government, contrary to the original 1963 agreement and entered into a lease agreement on the airport land that effectively transferred millions in potential rental from the Councils to Government, whilst preventing public scrutiny of the proposed arrangements.
Clearly the people we chose as leaders and their airport appointees got this issue seriously wrong choosing to listen to opinion from wingeing pseudo experts, advisers who were seriously comprimised by their association with Air New Zealand and a disingenuous monopoly claiming they were not over charging when clearly they have been doing so for years. We should now question every piece of advise Air New Zealand has ever given starting with their claims there is insufficient traffic between Hawke’s Bay and Australia to justify direct flights. If the arrival of competition can flush out more than 100 000 extra passengers on domestic services to just one destination in a single year, just imagine what direct trans-Tasman flights would do to Hawke’s Bays well being. We must also encourage Jetstar to start offering direct flights to Wellington with connections to Christchurch.
We can continue doing nothing for another decade and remain at the bottom of regional rankings or we can start doing something about catching up. Local Government voting has already started. If instead of simply putting a tick beside the names of candidates that are recognisable because they are standing for the umpteenth time voters could do themselves a favour and seek those candidates with the knowledge, experience and track record to actually make a meaningful difference.
Remember also politicians promises are being made with your money.
