It’s time for jets to come to Bay

It’s time for jets to come to Bay

Published HBT 24 April 2017 

Hawke’s Bay Airport is booming. For the six months to Dec 31 2016, profit after tax was nearly one million dollars on the back of a 21.4% lift in revenue combined with slightly reduced operating expenses. 

The outstanding feature of the past year has been a huge increase in passenger numbers which for the half year were 326 489 up 55 978 or 20% over the same six months the previous year. For the full 2016 calender year 622 409 people flew into or out of Hawkes Bay up by 113 644 or 20% from the 508 765 a year earlier. For the previous 2014/15 financial year the airport handled 456 672 passengers a figure scarcely changed from the 449 126 in 2008, seven years earlier. 

This increase is mostly due to Jetstar adding Hawke’s Bay to their network from December 2015. As part of the Qantas empire they had the financial resources to avoid being driven out of business by Air New Zealand as happened to both Origin Pacific and Trans Air. 

Apparently the 20% growth has continued since the end of last year and I noticed during two recent afternoon visits there were still 8 Air NZ and 2 Jetstar flights scheduled to operate each way between Napier and Auckland. Assuming there were a similar number of flights earlier in the day there could be around 20 return services or 1000 seats each way a day just to Auckland. We still need competition on flights to Wellington and Christchurch routes which have not benefited from increased competition and as a result airfares remain relatively high. 

The real pity is we might have been in this position many years ago had it not been for the apathy, resistance and lack of vision of local mayors, their councillors and the airport board. Rather than being proactive and tackling our over priced airfares these leaders chose to pour tens of millions of dollars into projects that have failed to have any meaningful impact on our economic well being such as the $18 million museum and $15 million Opera House. In comparison the recent improvement in air services has cost ratepayers nothing. 

To better illustrate this point, before Jetstar arrived the Mayor of Napier claimed we were not being over charged by Air New Zealand ( HBT 5/09/2014 ) then suggested Jetstar could damage Hawkes Bay by taking all the highest paying passengers away from Air New Zealand (RNZ nine to noon 19/06/15). 

In my six and a half years as a Hastings Councillor I cannot remember a single instance of the Airport Board recommending a course of action to create competition, improve air services or add new routes though I certainly remember the many occasions when they recommended doing nothing. Just as the council owners have wasted money the airport poured 5 million dollars into a business park which has only attracted one tenant and needed a nearly one million dollar write down in value. Currently the emphasis is on a major terminal upgrade even though it will actually contribute little to the Hawke’s Bay economy. Terminals don’t attract passengers. Only new routes plus better and cheaper air services do that. 

Population is the major driver of air travel. It doesn’t matter that Hawke’s Bay is growing at only 0.9% p.a. because both ends of each city pair contribute to demand by being both a source and a destinations for travellers. With Auckland expanding at 2.8% p.a, this will translate into a nearly 4% annual increase in passengers. 

Other factors that contribute to demand but not necessarily in order of importance include the passenger perception of quality. People prefer bigger aircraft which they consider safer, faster, quieter, less cramped, more comfortable and less prone to turbulence. The Jetprop type of aircraft flying in and out of Hawke’s Bay account for a miniscule proportion of world commercial aviation. The major aircraft manufactures Boeing and Airbus do not even bother to make such aircraft. 

Only routes connecting Auckland, Wellington and Christchurch to Hawke’s Bay justify any air service at all. Auckland should have the numbers for jets and if we are to establish Hawke’s Bay as a place of significance that is what we need. 

However there are destinations in Australia including Sydney and Brisbane/Gold Coast that would also provide the necessary passenger numbers for direct services and this is also what we need as well. 

The increase in passengers numbers over the past year is multiple times the total numbers that visit the Museum, the Opera House and most other council owned facilities which lose money. We seem not to know who all these new travellers are but they must be contributing significantly to our growing economy.  The airport contributes to our economy, makes money and pays a dividend to the Council owners.