Hawke's Bay Airport

The announcement suggesting the Hawke's Bay Airport upgrade was about to start, looked positive but was really more of a public relations exercise and photo opportunity.

Many people have been fooled into believing competition is arriving and they can expect lower airfares. In fact this is highly unlikely because those involved have decided to build a runway that is just 150 metres too short to be sure we get the services we really need.

Just why the runway is to be extended to 1750 metres instead of 1900 metres defies logic. Almost certainly it is guaranteed to fail.

Three of those claiming credit are the very individuals who have held the project up for the past 6 years. The Mayors of Hastings and Napier, and Airport Chairman John Palairet failed to act as they should have after being warned of serious shortcomings in the 2004 Pricewaterhouse report on the airport.

Instead they dithered inflicting tens of millions, perhaps even hundreds of millions of dollars of economic damage on the Hawkes Bay economy.

This is now showing up in depressed visitor statistics, subdued business activity and reduced spending power in our community as millions of dollars are unscrupulously syphoned out by excessively high air fares. The drop in visitor numbers is conservatively estimated to be costing the region at least $10 million a year.

We have lost many important employers over recent years and those remaining complain of both the high pricing and the inflexibility of Air New Zealand services.

Transport is essential to our economy. Air Transport essential for it to function efficiently. Some 400 000 people a year use air travel because of convenience, urgency, safety and practicability The fact numbers are down about 10% on 2 years ago delivers a clear measure on the true state of the Hawke's Bay economy.

No other airport in New Zealand attempts to operate jets from 1750 metres. While very limited services will be possible the slightly lengthened runway will impose restrictions that will make scheduled jet services less likely.

Those who loosely claim competition is just around the corner might like to explain just which aircraft will be able to operate commercially from the new runway.

One thing is clear the $5.5 million extension will not enable trans-Tasman services, ever.

While Airbus A320 jets as flown by Air New Zealand will have some capability to provide domestic flights, the airline has made clear their opposition to flying jets into Hawkes Bay. In the past they have gone so far as to threaten legal action to prevent development charges being imposed to finance a runway extension

Jetstar also operate Airbus A320 aircraft but look unlikely to fly here. So far they offer services only to the three main centres plus Queenstown. Since they have not opted to service smaller centres its hard to imagine why might they come to Hawke's Bay?

The third domestic carrier is Pacific Blue, who fly Boeing 737– 800 aircraft to the three main centres, Queenstown, Dunedin and Hamilton. They seem more likely to be interested in adding Hawke's Bay to their network. So, has Pacific Blue stated the runway will be of sufficient length for commercial operations?

At best we might see the occasional Air New Zealand charter or non scheduled flight in support of events such as the Rugby World Cup, but achieve little improvement in the outrageous pricing that is doing so much damage to Hawke's Bay.

It seems strange that both Mayors have been quite willing to sink more than 100 million dollars into conference venues, sports facilities and various attractions, all of which have been justified on the basis of attracting visitors, yet they have been so tardy in making Hawkes Bay more accessible.

The $7 million of ratepayers money poured into the Regional Tourism Organisation Venture Hawke's Bay might have been more usefully employed upgrading the runway.

We are the most inaccessible large population centre in the country, and the largest urban centre in the country not to have any sort of jet services.

We have allowed a barrier to be created that simply dissuades people from coming here, is a disincentive to new businesses being established, and allows monopoly pricing and services. We would not accept such an arrangement in telecommunications, energy, or for most other products and services, so why are we so apathetic when it comes to air services?

While the new runway will be inadequate it is better than nothing but on the basis of $5.5 million to build 450 metres another $1.8 million would build a 1900 metre runway.

Significantly this far less than the amount the board have always claimed.

Extending the runway is a one off cost. The worst that could happen is air services do not improve.

Compare this with the millions lost annually by other council operations such as the museum, Aquarium, Splash Planet, and the Opera House. Splash Planet alone has cost ratepayers $10 million in accumulated losses.

Higher patronage would help all these ventures and getting more visitors here will go along way towards increasing numbers.

A 1900 metre runway would allow both B737 and A320 aircraft to operate both domestically and to Australian East Coast capitals without restricting passengers. Airport profitability and cash reserves, mean the work can be done at no cost to ratepayers.

To most people it's a no brainer.