17 June 2016

Air Chathams buys Kiwi Regional


This just through in an email from Kiwi Regional...

Kiwi Regional Airlines is using this newsletter to give all our subscribers advance warning of a major change to our services. After 30th July, we will no longer be operating our existing scheduled services between Nelson, Dunedin, Hamilton and Tauranga - except for a group of flights at the end of August/start of September (which include a number of school sports teams) which we will let you know about soon. Air Chathams, an existing airline with 5 aircraft, has purchased our aircraft and will be using it on the Whanganui-Auckland route from 1st August that Air NZ is stopping. All of our flights before 30th July will still be operating as planned, and we urge you to make the most of the remaining time to book your Kiwi tickets. If you have Kiwi tickets for travel after 30th July, you will be given a full refund, OR - if you want to bring that trip forward - we ask you to call our reservations centre to make a rebooking.

And here is the full press release...

One of New Zealand's most established airlines has announced that it has purchased Kiwi Regional Airlines' Saab 340A aircraft and will absorb the aircraft and offer employment to the majority of Kiwi Regional Airlines full time staff and absorb them into its operations from the start of August this year. Air Chathams has been in existence for over 30 years, and runs a 5-aircraft operation with scheduled services between the Chathams Islands and Auckland, Wellington and Christchurch as well as a regular scheduled service between Whakatane and Auckland. It has previously announced it would fill the gap left by Air New Zealand's withdrawal of services between Whanganui and Auckland, starting on 1st August 2016. It had planned to use an 18-seat Metroliner, but will now use Kiwi Regional's 34-seat Saab 340 on this route. Kiwi Regional Airlines will continue to run its scheduled services until 30th July, and will then run the Whanganui to Auckland service for Air Chathams using Kiwi Regional's Air Operating Certificate until Air Chathams can move the aircraft onto its own AOC. Kiwi Regional Airlines passengers booked on flights after midday on the 30th of July will receive full refunds, or be offered alternative travel on flights before that date. All of Kiwi Regional Airlines' charters flights with school groups in August and September will still operate. Air Chathams CEO Craig Emeny said, "We are delighted to have bought Kiwi Regional Airlines' Saab 340." "The aircraft is a respected aircraft type in New Zealand and has been very well maintained. Kiwi's pilots and engineers will make a welcome addition to the Air Chathams family." Kiwi Regional Airlines CEO Ewan Wilson said Kiwi had "a choice to either expand by adding a second aircraft to our own fleet, guaranteeing reliability of service, and splitting the very high compliance costs; or be absorbed into a larger player." "From my point of view I am pleased our aircraft and flight staff will become part of the Air Chathams operation. We have had a formal maintenance agreement with Air Chathams since the start, and this will be an extension of that relationship.





32 comments:

  1. Thats a shame.

    It looks like the 2nd level carriers is going be to Air Chathams, Barrier Air and Soundsair.

    It will be interesting to see who these 3 carrriers are going to define New Zealand's regional aircraft scene in association with the 3rd level main carriers like Sunair and Air2there.

    I wonder how long Originair is going to last?

    ReplyDelete
  2. Kris, can you please explain your logic behind calling Barrier Air and Sounds Air 2nd level and Air2there and Sunair 3rd level?

    ReplyDelete
    Replies
    1. I base it on how proactive the carrier is in route development, the numbers of seats on the aircraft type used by the carrier for its destinations which is a minimum of 6 and how the carrier does it marketing.

      The seats on the aircraft type used by Sunair ranges from 5 to 7 seats and yes, Sunair does serves 8 destinations in the Auckland, Waikato, Bay of Plenty and Hawkes Bay regions. If Sunair introduces at 9-12 seater twin engine aircraft, giving 5 to 12 seats across the fleet, then I would consider Sunair a 2 level carrier. Barrier Air has a seat range of 4 to 14 across it fleet servicing 6 destinations, it sit towards the lower end of my criteria for a 2nd level carrier.

      Soundair has now 7 destinations with the introduction of the BHE/CHC service from 1 Aug 16 and has a seat range of 4 to 14 across its fleet. Like with Barrier Air, I put it to the lower end of of my 2nd level carrier criteria.

      What is your definition of a 2nd level carrier?

      Delete
    2. Don't know who Anonymous is but if anything Air Chats would be 2nd Level due to their long and proven route structure and large aircraft.

      Delete
    3. Yeah totally Kris like I mentioned below, definitely feel that Barrier is a half half 2nd/3rd leveler and if it weren't for the Caravan and the Kaitaia service, it would definitely be a 3rd leveler. The only true service is the one to Claris so that would make it just a 3rd level airline offering a niche service like Stewart air etc. Sunair... biggest fleet outside of Air nz but with a fleet of Cessna and pipers and a service very much a bus service where if no one is at the bus stop it won't be stopping...
      You could go as far as saying... if you have a comprehensive and complex destination map and a fleet of pressurized aircraft then you become a 2nd leveler...

      Delete
    4. QUESTION FOR YOU KRIS...

      What is the exact cut off for 2nd leveler to become a 1st level airline..? Air Chats would have to be so so close of achieving that..? A huge "time crossing flight" across a huge expanse of ocean to a place that.. basically is it's own country... "the wekas!!!" as they call themselves...

      Delete
    5. To Kris... Actually Sounds Air serves 8 destinations now and Christchurch will be their 9th from 1st August. Also their seat range is 9 to 12 seaters. See https://en.wikipedia.org/wiki/Sounds_Air

      Delete
    6. Kris SunAir no longer operates to Hawkes Bay and haven't done so in a very long time

      Delete
    7. For fras444 - In regards to the NZ Domestic market, I consider a 1st level carrier to be Air NZ Regional (that includes MT Cook Airlines and Air Nelson) and Jetstar Regional as they are full service carriers, where all flights have flight attendant and operating on a comprehensive network that contains connecting services/flights.

      This what the travelling public wants.

      A 2nd level carrier is like Air Chathams and formally Kiwi Regional Airlines, thats has either pressurised aircraft or a mixture of pressurised/pressurised aircraft, offering semi full service flights meaning that some flights might not have a flight attendant and operating a reasonable network that not necessary having interconnecting flights/services unlike a 1st level carrier.

      As far as I am concerned, Air Chathams is a 2nd level carrier, as it meets my criteria, more so now, that they are going to own the Saab340. If Air Chathams gets a second Saab340, back up with the Convairs and the Metroliner then they can build a reasonable regional domestic routes from AKL-WHK, AKL/WAG/WLG/NSN/CHC, possibility reintroducing HLZ/NSN/DUD and TRG/NSN/DUD, as this would link into their CHT/CHC/WLG/AKL services.

      For Jarden - You are correct. Soundsair has now 9 destinations. Forgot about PPQ and NPE.

      For MG Aviation NZ - According to Sunair reaservation system, I can booking GIS/HLZ on 17 Nov 16. There are 2 flights that day. Sunair is opening flights on 17 Nov 16 from GIS/TRG and GIS/WHK.



      Delete
  3. Indeed. Don't Sunair have a far bigger network than Barrier Air?

    ReplyDelete
  4. I wonder if air chats will get anouther saab to fly to whakatane

    ReplyDelete
    Replies
    1. Probably slip it in on "heavy" load days.
      A really good aircraft.

      Delete
  5. What he is meaning is that, jetstar and Air nz are considered 1st level being huge airliners along with having direct or indirect international feed. Airlines of Sounds air, Air Chats and the like are 2nd level being the size they are with a relatively comprehensive network possibly the pressurized aircraft puts them ahead of others. And yeah the rest like air2there and sun air are what you could call true 3rd levelers. Limited/one route or location destinations or using small older aircraft

    ReplyDelete
  6. Luckily only two staff lost their jobs. I wonder how much did they pay for Kiwi only asset was their Saab really. Air Chathams could have kept the KRA routes open but use the smaller Metro on the DUD-NSN-HLZ runs. There must be some market between the regional cities.

    ReplyDelete
    Replies
    1. Good points, could be something for OriginAir to pick up on...Used the old Origin on the Hlz-Nsn route, did well.

      Delete
  7. Sunair on paper fleet wise... you could say has the largest fleet outside of Air nz but... with it made up of Cessna and pipers... also from reading between the lines through all of Steves posts... they operate a considerable schedule, but more in the way of a bus and not stopping if no one is at the bus stop kind of thing. Barrier Air you could say is more between a 2nd and 3rd level airline. Outside of the Caravan and Kaitaia route it is a very limited but comprehensive service... Auckland/North Shore Airport to the Barrier.

    ReplyDelete
    Replies
    1. Looking at this question from the past in the New Zealand context I would have said Mount Cook Airlines was 2nd level rather than 3rd level... a secondary airline that had an extensive network with medium size aircraft. Today, with its expansion I would probably moving Air Chathams to that category, with the others third level. In the past Sunair's operation would have almost been considered an air taxi service

      Delete
    2. Totally agree with you Steve. You used far better words to describe Sunair. A taxi service.
      1st level airline Steve.... what is the minimum cut off..? With a "time zone crossing" ocean flight, massive pressurized fleet and a comprehensive destination schedule.. could Air Chats become the next 1st leveler

      Delete
  8. Can a Saab operate out of Whanganui..?? Just remember when I was a little kid and asking the guy if those big aircraft (remember when air Nelson had the lovely blown up photo of the Saab and the Metro) and he said that the Saabs operating into Whanganui airport were load limited.. That's why only the Metros only land there..? Anyway I know that they now have the Q 300's operating there but also have read on various forums that the Saab is like the Merto in that performance wise can't operate out of certain airports in certain conditions...

    ReplyDelete
    Replies
    1. I would assume the Saab would be, especially as it's an A model

      Delete
  9. If the Q300 is anything to go by, with a shorter runway they will be limited to about 18.5t (vs 19.5t MTOW). Which, for a short sector (less than one hour) doesn't actually affect loading, but they will just carry less fuel. It will be the same for the SAAB I imagine. 'Load limited' is generally a term used when they cannot take off at MTOW every time.

    ReplyDelete
  10. From stuff today:
    A brief history of Kiwi Regional

    December 2014 - Ewan Wilson announces plans to launch Kiwi Regional

    July 2015 - Kiwi Regional buys a Saab 340A, backed by investor 2 Cheap Cars

    August 2015 - Airfares to Dunedin, Queenstown, Nelson and Hamilton go on sale

    October 2015 - Regulatory approval issued by the Civil Aviation Authority

    October 2015 - First flights take off, Dunedin to Queenstown service cut back

    November 2015 - Queenstown-Dunedin route axed

    February 2016 - Tauranga-Nelson route added

    March 2016 - Kiwi Regional plans to raise up to $2 million via crowdfunding to buy second aircraft

    June 2016 - Kiwi Regional folds, sells aircraft to Air Chathams

    Regional failures

    Origin Pacific – Operated from 1997 until 2006.

    City Jet – Operated between May and November 1999

    Pacific Blue – Stopped domestic flights in 2010, after three years

    Ansett NZ – Served New Zealand's domestic market between 1987 and 2000.

    Vincent Aviation - Founded in 1992 and went into receivership in 2014.

    Tasman Pacific - When Ansett New Zealand was sold, it became Tasman Pacific. But it became a franchise of Qantas shortly afterwards and went into liquidation in 2000.

    ReplyDelete
  11. Lots of fluffy talk in articles that engineers and all staff with exception to two will be moving to Air Chathams.

    I find that hard to believe. With the Saab flying from AKL to WAG and presumably also WHK when demand allows.. Crew, engineers, administration and ground staff would relocate form DUD, NSN and HLZ to AKL bar two... Highly doubt it, wool pulling right to the end.

    What is interesting now is whether chats discover the Saab as a type to add additional examples for scheduled and chatter.
    AKL-WAG, AKL, WHK ... Perhaps AKL-MRO and WHK-WLG are next on the list...

    ReplyDelete
    Replies
    1. Let's not forget that not to long ago... Air Chats were vying for that Masterton route along with Vincent for Vincent to win as the runway wasn't long enough for the metro while the runway was sufficient enough for the Saab... Guess who has a Saab NOW!!!!

      Delete
    2. Let's not forget that not to long ago... Air Chats were vying for that Masterton route along with Vincent for Vincent to win as the runway wasn't long enough for the metro while the runway was sufficient enough for the Saab... Guess who has a Saab NOW!!!!

      Delete
    3. The Saab flight/cabin crew are based in Hamilton. I am not sure where the spares are based or where the Saab maintenance is done. If its spares are based and the maintenance is done in Hamilton, I don't see Air Chathams shifting everything to Auckland or Christchurch. It would be expensive, especially if they move to Auckland and the flight/cabin crew have to find accommodation in Auckland.

      Since CV is doing AKL/WAG/AKL with the Saab, it would mean that the Saab will need to fly HLZ/AKL as a dead run or could use HLZ/AKL and WHK/HLZ as freight/revenue service.

      Delete
    4. KRA's Engineering was Air Chats from the start

      Delete
    5. Wasn't the engineering work conducted using at the MainlandAir hangar at Dunedin Intl
      That's where the aircraft spends most of its time

      Delete
  12. Chats are the 145 provider. Line maint done in dud, all checks done in Auckland.

    I'd be surprised if chats to anything more than perhaps whk-wlg, unless airnz the pull out of something else.

    I suspect rather than trying to expand/grow they are just taking opportunities that come there way

    ReplyDelete
    Replies
    1. Agree with your comments on Air Chats taking opportunities that come their way. They strike me as a cautious operator that works well with the communities they serve. My thoughts are that they will focus on WHK and WAG and build those. But then of course if other ports or planes come available...

      Delete
  13. POB/POE/POF all up for grabs ......watch the CAA register for changes!

    ReplyDelete
  14. I was in Auckland on Saturday and was wondering the same thing... Have been watching just in case... again, a case of opportunity

    ReplyDelete