Saturday, April 23, 2016

Published HBT 23 April 2016

After a decade of near stagnation passenger numbers through Hawke’s Bay Airport for the 6 months to December 31 increased by 13.5%, (HBT 5/04/2015) possibly the most significant performance improvement in the entire history of the airport. 

Whilst this included just one month of Jetstar operations their pending arrival in provincial New Zealand had been announced way back in June, so Air New Zealand had plenty of time to take action to preempt the increased competition. 

It seems certain passenger numbers will exceed half a million by the end of this financial year, (June 30) and as most of the 135 000 additional Jetstar seats between Napier and Auckland will only become available in the second half of the financial year, it seems likely passenger numbers could reach 600 000 by Christmas this year, at least 3 years ahead of the airports own projections.  

Whilst it’s great the airport is financially viable thereby lessoning the risk of needing council and crown support, the primary purpose of the airport is not to make money but to facilitate essential air links with the rest of New Zealand and the rest of the world. Without these links our businesses would be seriously disadvantaged, our visitor industry much reduced, and Hawke’s Bay would be a much less desirable place in which to live, as has been the case for far too long. 

Airport management tells us business travellers make up an astonishing half of all passengers, proof if any is needed that we have been subject to some very unreasonable treatment from the national carrier. Antidotal evidence suggests there has now been a significant correction since Jetstar arrived on the scene.  For far too long those visiting friends and family and tourists have been deterred from coming here by excessive airfares. Suddenly these people can afford to fly, often for the first time in their lives.  Businesses are also able to visit their clients and suppliers more often and more affordably.  

Yes Hawke’s Bay is on a roll and the increase in passenger numbers through the airport is evidence we may have turned a corner. However the reality is we could have been in this situation many years ago had our MP’s, Mayors, Councillors and the Airport Board committed to getting competition and better air services rather than just paying lip service. It needs to be said our leaders did nothing to get Jetstar here, despite their endless efforts to gain a share of the glory. Perhaps if they had declined a few Air New Zealand lunches and had instead tackled the airline’s management over their service levels things might have been different. 

For years these naysayers claimed it would require over $10 million of runway and terminal  improvements to get another airline. Strangely the Napier council was quite happy to spend $18 million on the museum upgrade catering for fewer than 40 000 paying visitors plus $2 million for a couple of reconditioned buses that managed just one passenger per trip. Hastings also had a $15 million spend up on the Opera House that attracted just 60 000 customers, and now needs a further $10 million for earthquake strengthening.  At the same time the the airport board spent $5 million developing a business park which attracted just one tenant and has already taken a near million dollar impairment charge.

Now Napier plans to spend a further $15 million on a velodrome whilst Hastings intends spending untold millions on Civic Square, a hotel and other projects, none of which will provide any significant economic benefit, or provide for more than a tiny fraction of the 600 000 people expected to pass through the airport this year. Additionally these dreams all require substantial ongoing ratepayer support, unlike the airport which actually makes money and plays the council owners a dividend.    

Good times never last forever and we need to be proactive in seeking ways to sustain the growth we are now experiencing.  We have finally got competition and look at the difference it is making. We now need Jetstar to start flying south to Wellington and/or Christchurch. We need larger more traveller attractive A320 pure jets linking us with Auckland, and we need to get direct flights to Australia. All of which we might have achieved years ago if those charged with making a difference had actually made a difference. 


Our so called leaders have been too willing to accept Air New Zealand claims they were meeting our needs. The 135 000 additional seats now being provided by Jetstar, (plus another 29 500 from Air New Zealand) in the space of just one year is clear proof of  how seriously wrong they have been all along. It is time to replace the negative thinkers who seem control so much of Hawke’s Bay with people of vision, appropriate expertise and proven performance. 

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