Last month I wrote to New Zealand's regional airlines asking them seven questions about their airline as they offer air services to our regional centres. I have tried to make the questions generic and not commercially sensitive but at the same time offer a glimpse of our regional airlines and some of the challenges they have and how they rise above them. The first five questions are specific to each airline... the last two I'm asking all the airlines.
This time are to to the top of the North Island talking to Grant Bacon, CEO of Barrier Air...
Since it’s rebranding as Barrier Air the airline has made some big changes. What’s been the thing you’ve been most proud of in the Barrier Air transformation?
There are many things I am proud of regarding the performance of Barrier Air. There are three things which immediately come to mind which make me proud of what we have achieved so far. The first is that we have developed a team of passionate people who are engaged and focused on making our operation a success. It has never sat well with me that some airline operators would have a mentality to treat their staff with a lack of dignity and respect. I operate our business with the philosophy that you CAN NOT put a price on your staff’s ‘goodwill’ towards the operation. If people are engaged and feel that senior management actually care about them and respect them then it immediately can be seen in the overall financial performance of the business. At Barrier Air we have recently increased our staff pays to a level which is more similar to that of a larger airline. We try to give our staff a more balanced lifestyle. We are also rewarding staff who give long service with yearly pay increases and also additional pay for taking on roles with extra responsibility.
The second thing I am proud of is the continued performance of the Cessna Grand Caravan. These aircraft are exceptional. The reliability, marketability and economy of this aircraft over the course of its life is second to none. We are in the final process of securing a fourth Grand Caravan and will also look to lease another one for the summer period bringing out total fleet number to 5. The Cessna Grand Caravan is a magnet for attracting passengers. With its overall size and the jet turbine up the front, once people experience it they struggle to get back on a piston twin.
Lastly I am really pleased with our recent CAA AOC renewal
audit. We received very good feedback from CAA. This is a testament to the
passion, professionalism and dedication of all our staff and Management.
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| Barrier Air's first Cessna 208 Grand Caravan ZK-SDB at Auckland en route to Great Barrier Island on 4 October 2020. It's a Sunday afternoon... full flights coming back, not so many going out... Another of the challenges Barrier Air faces every Friday and Sunday. |
In the last couple of weeks Fly My Sky has ended operations. They were the competitor on the Great Barrier route since 1998 when Mountain Air went into competition against Barrier Air's predecessor Great Barrier Airlines on a route that is very busy during the summer and lean during the winter. What are challenges for Barrier Air being the only operator?
With the move to five Caravans and the demise of our competitor I think we will cope with the load without too much issue. The seasonal nature of the business means that ultimately when you consider maintaining a fleet to a proper standard and allowing for a long term replacement plan of the fleet it has never been viable to have two airlines operate the route. The financial numbers in a Part 125 operation can be mind boggling. Everything is 6 figures per month. Fuel, maintenance, staff - they all equate to a massive number just to cover the basics. The seasonal nature of it all just made it even harder but ultimately I am pleased with how we have made our business viable over the last couple of years.
Air New Zealand’s withdrawal from Kaitaia was the catalyst of Barrier Air expanding beyond Great Barrier Island. How has Kaitaia accepted and adapted to the change to Barrier Air?
When I first started at Barrier Air my focus was to develop the Kaitaia route. We went from doing just 12 flights per week up to 26 with the addition of the daytime flight. Like I have said before the airline wasn’t in great financial shape back in those days and it potentially meant it would ‘make or break us’. The team and I pounded the pavement in Kaitaia and knocked on all the doors of the business community and promoted the service. Ultimately it worked. We are now getting similar passenger numbers to what Air New Zealand were carrying and the route is finally profitable. We have an amazing team in Kaitaia and the feedback in the community about Barrier Air is awesome. We now plan to take this model and use it for developing the Whitianga service.
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| Cessna 208 Grand Caravan ZK-SDD at Kaitaia 2 March 2020 |
The airline faces the challenge of flying into a major and very busy Auckland airport. How has the airline risen to the challenge?
We have adapted a model that nearly 90% of our flights are operated IFR. This is more expensive but it sets our standard way higher and actually reduces the margin of error. We don’t need to be in the ‘City Gulf MBZ’ for extended periods which negates the risk of collision massively. Airways have often commented on how they have seen how busy we have become and that they have seen the changes in the way we operate. Aircraft Parking has always been a major issue for us and Auckland Airport have found some decent solutions moving forward to allow more space for our aircraft to park. We are in the process of working with Auckland Airport finding more office space as we grow the business. The transport links are great for our passengers and most people want to fly into Auckland. The North Shore market is tough and one that we always tread with caution on due to peaks and troughs in the business. A twice daily only works for 3-4 months of the year.
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| Cessna 208 Grand Caravan ZK-SDC on approach to North Shore Airport on 17 December 2018 |
In December Barrier Air is starting a new service to Whitianga. What are the challenges the airline has had to and will have to overcome to fly to Whitianga?
At this stage the challenges have been minimal. Airways have been great with getting the approach up and running. The Mercury Bay Aero Club have been great also. The sales are coming in almost daily and it is still 6 months from the start date. I envisage the challenge will arise in winter when the loads reduce. We will react to this when the time comes. Whitianga is a great town which is booming. The team and I are really excited about commencing the new service. The plan is to get similar loads to our Kaitaia service.
The last two are the same I am asking all the airlines… Covid presented the New Zealand regional airlines with many challenges. What has your airline learnt and how is it stronger from these challenging times?
Covid has been a nightmare at times, there is no sugar coating that. You just get your confidence back and the next lockdown comes. The biggest talent we have learnt is how to reduce your costs immediately when a lockdown arrives and to work with our suppliers to ensure that we are getting relief from expenditure and whilst still providing a freight and essential personal service to the communities we serve.
In a sentence or two how would you describe your airline?
Barrier Air is a premium ‘third level’ airline, providing a friendly, professional and essential service to 3 thriving communities. We operate a fleet of late model, well presented Jet Turbine Cessna Grand Caravans, Single Engine IFR.
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| Barrier Air Cessna 208 Grand Caravan ZK-SDC taken at Great Barrier Island on 8 April 2019 |
Thanks Grant for taking the time to answer these questions. I have loved watching Barrier Air develop and it certainly sounds there are exciting times for Barrier Air under its great leadership team well supported by its enthusiastic team.
My history of Barrier Air can be found here : http://3rdlevelnz.blogspot.com/2015/08/barrier-air-new-name-to-barrier-and.html
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