New Zealand News

Instead Air New Zealand has reopened its campaign to gain a strategic share in Ansett and is now holding talks with TNT over a phased acquisition of the latter’s 50% holding in Ansett. One possibility is that Air New Zealand acquires an initial 5 to 10% of Ansett from TNT, giving it a seat on the Ansett board, and gradually increase its holding over four or five years.

Pac Deal Finalised

Aeromotive’s acquisition of ASTA’s 75.1% stake in PAC was finally formalised on October 3, after protracted negotiations. Aeromotive intends to keep PAC as a separate entity, but has announced plans for a new business plan, restructuring to return to profitability and a new general manager. Another change will be a new and more realistic pricing structure for new aircraft and spares.

Lockheed Martin owns the remaining 24.9% of PAC, a stake which it intends to retain. Lockheed Martin’s holding in the New Zealand manufacturer gives it a strong manufacturing base which allows it to bid competitively for NZ defence work, such as the Orion re-winging programme. PAC is well known for its manufacture of the Cresco and Fletcher ag aircraft and the CT-4 Airtrainer.

Mount Cook Atrs Arrive

Mount Cook Airline’s first ATR 72, ZK-MCC, arrived in Christchurch on October 5.

Peter Clark reports that at the controls was Mount Cook Airline Operations Manager, Captain John Jones, who flew the aircraft for its six day delivery flight from Toulouse in France. The aircraft left Toulouse on September 30 and travelled via Luxor, Colombo, Singapore, Darwin and Sydney. On board were several flight crew and engineers that had completed an intensive month long ATR training course in Toulouse.

This first aircraft flew a number of route proving and promotional flights on Mount Cook routes and to key tourist destinations throughout October and was due to enter service on November 27. The remaining ATR 72s on order will be delivered through to February next year.

Mount Cook has already begun the process of disposing of its HS.748s, with negotiations currently underway with Royal Tongan Airlines, covering one aircraft and spares.

The arrival of the ATRs heralds a new era for Mount Cook Airline. The airline will adopt Air New Zealand’s ‘NZ’ IATA flight code when ATR service begins, and all the aircraft are being delivered in Air New Zealand Link livery.

From the November 27 entry into service the ATRs will be used on five daily Christchurch/Invercargill return flights, seven flights from Auckland to Invercargill and five flights from Invercargill to Auckland. As the aircraft are progressively introduced they will be used to add other new routes to the Mount Cook network and to increase capacity on sectors now served by Air New Zealand 737s.

Airplan Develops New Wellington Terminal

Australian based airport planning and consultancy firm Airplan has been appointed as part of a design team to continue detail development for a new single level passenger terminal at Wellington International Airport.

The new concept of an elevated single level passenger terminal has been designed with Wellington’s space limitations in mind. The new ‘see through’ terminal will have views out to Cook Strait. The elevated terminal will have full undercover access from a transport interchange servicing buses, taxis, limousines and rental cars. Completion of the new terminal development is anticipated in early 1998.

Airways Announces Profits, Price Cuts

Airways Corporation has posted a net operating profit after tax of $NZ5.3m for the 12 months to June 30, and at the same time has announced price reductions to some of its services.

Rex Loach, Airways Corporation’s Chairman, noted “the Corporation has continued to perform well, and meet the shareholders’ targets.” The $NZ5.3m result compares with the previous year’s figure of $NZ6m.

Airways announced from October 1 it reduced the enroute IFR charge by 10%, due to increased airline demand for the service. The reduction brings the total price cut on enroute IFR charges to 23% since October 1993. Airways has also reduced charges for the approach services into Auckland, Christchurch and Wellington airports by 10% from October 1 (making the total price reductions for that service since March 1995 of 13%).

Airways applies Economic Value Added (EVA) principles to evaluate its financial performance to allow it to balance its conflicting needs to meet customer and shareholder needs in setting pricing structures. Said Mr Loach “the results of our EVA analysis demonstrate that the Corporation has achieved the financial objective agreed with our shareholders (the NZ Government), enabling EVA surpluses to be returned to our customers.”

Kiwi to the Cooks

Kiwi Travel International Airlines has announced plans to fly to Rarotonga, in the Cook Islands, from December 29.

The airline will fly Hamilton/Auckland/Rarotonga and return each Friday, with fares set considerably lower than those currently on offer from Air New Zealand, the only airline currently flying to the Cook Islands from New Zealand. Kiwi plans to offer return economy fares of $NZ999 for peak season travel between December and February, and $NZ799 for the rest of the year. The Cooks are a highly popular tourist destination for New Zealanders, while Auckland is home to a large Cook Islander ethnic population.

Kiwi meanwhile has been struggling to cope with continued heavy demand for bookings and has consistently recorded load factors in the mid 90s on its trans Tasman services. The airline recently ran into strife when in mid October its 727-200 blew two tyres while landing at Sydney, which put the aircraft out of action for several days.

Kiwi is now looking at leasing a 757. For more details please refer Stop Press.

Briefs

Northwest Airlines has become Air New Zealand’s latest frequent flyer programme partner.

Brian McDonald has returned from Hawker Pacific (where he was Divisional Manager South East Asia) to become the General Manager of Helicopters (New Zealand).

Auckland International Airport’s new international terminal check-in area, group tour facilities, public areas and rooms are due to become operational on December 1.