Plan to bring Air Chathams HQ to Whanganui still being worked on by district council

 

A plan for Air Chathams’ potential move to Whanganui has stalled, but the district council says it “remains very much on our radar”.

The Chronicle reported in May last year that the airline had signed a memorandum of understanding with Whanganui District Council to work on a business case for a headquarters relocation.

At the time, then-council chief executive David Langford said it would take about three months and cost “as close to zero dollars as you can get” because the work would be done by himself and one council staff member.

Langford left in October to become director of highways, transportation and waste management at Nottinghamshire County Council in Britain.

Air Chathams chief executive Duane Emeny told the Chronicle this week that the Middle East conflict had “put the brakes on everything”.

He had not heard from the council since mid-February, he said.

“I haven’t tried speaking to them either, but I haven’t had a bunch of missed calls about a hanger build or a southbound service,” he said.

“But I think council knows enough, in terms of what we’ve said would make it more interesting for us - what they can do to help get us in there.

“It’s with them, to be honest.”

Air Chathams chief executive Duane Emeny says the Middle East conflict has "put the brakes on everything". 

Air Chathams chief executive Duane Emeny says the Middle East conflict has "put the brakes on everything".

A potential Whanganui to Christchurch route has also been discussed between the airline and the council, and Emeny said last October it was “still very much on the table”.

He said this week that a Christchurch service required another aircraft.

“You would have to repurpose, purchase or lease, there’s that conversation.

“And with two aircraft there, you would have to think about basing your flight crew in the region.”

There would also be regulatory issues to work through, including the need for a permanent rescue/fire vehicle and staff on site, required if there were more than 700 aircraft movements a year, he said.

“It’s a real concern for us and I wouldn’t want to put that on the other airport users.

“I think it’s been modelled out at about $35 per passenger just to cover that cost. That’s significant.”

In a written statement, airport chief executive Sarah O’Hagan said work on the business case was “well advanced”, with “most key components now drafted”.

“Progress has slowed in recent months due to uncertainty in the aviation sector following the fuel situation,” she said.

“However, this remains very much on our radar, and we are preparing to resume the next stage of work.”

O’Hagan said no final findings or costings had been confirmed, and an independent aviation sector review was planned before the business case was presented to councillors.

“No funding has been allocated in the Annual Plan 2026-27 for this work.”

Council chief executive Doug Tate said in a written statement that the key components of the business case, still in draft, included concept plans, an economic assessment and leasing options.

Meanwhile, Air Chathams will suspend its Auckland to Kāpiti Coast route from July 31 due to commercial unsustainability.

Emeny said Whanganui was “definitely not next on the chopping block”.

“It’s the only North Island route that’s washing its face.

“We’ve had to pull the [Whanganui] schedule back, which we don’t like, but that’s because of the fuel cost.

“It’s still 50 cents a litre more than it was in February. That might not sound like a lot, but it is when you’re burning a lot of gas.”

Air Chathams announced in April it would run eight fewer flights a week between Whanganui and Auckland.

Emeny said he hoped to restore some of the flights in the next few weeks.

Whanganui Airport is a joint venture between the council and the Ministry of Transport.

The joint venture’s statement of intent for 2026-27 was adopted at the council-controlled organisations and economic growth committee meeting on June 9.

It included several “forecast performance targets” for the next three years, including “delivery of a business case exploring the initiative to relocate Air Chathams HQ from Auckland to Whanganui”.

Whanganui Mayor Andrew Tripe told the Chronicle that rising fuel costs meant Air Chathams had shifted priorities to ensure it could continue operating efficiently.

But the business case was “very active” with the council, he said.

“The trifecta for me is the interline agreement, the route to Christchurch, and head office relocation to Whanganui.”

An interline agreement between Air Chathams and Air NZ, allowing passengers to book Air Chathams connecting flights through Air NZ, began in December with a trial of flights between Whakatāne and Auckland.

Source: Whanganui Chronicle