03 May 2016

Kiwi Regional Reduces Schedule





Kiwi Regional Airlines is ditching plans to fly into Christchurch from later this month, in a bid to hunker down during winter months and expand in summer. Chief executive Ewan Wilson says the company had difficulty getting slot times they preferred and terminal and ramp space, meaning they would have to change their schedule. The airline planned to do flights between Nelson and Christchurch and Dunedin and Nelson twice a week, and Tauranga, Nelson and Christchurch, but now will be sticking to a "skeleton schedule network for the four months over winter", beginning from June 1. The Wednesday service will stop operating, and from June 13 the Monday service will stop. "We're a leisure airline. We don't compete for the corporate routes which are year round," Mr Wilson told Newshub. "We rely on family visiting family and going direct region to region, and that is clearly seasonal." He says the company are just reacting to what the market wants --  a reduction in winter and ramped-up service over summer. Mr Wilson says the decision is not a sign of any trouble for the carrier, just a seasonal adjustment to the schedule. "Kiwi is operating and will continue to operate, and will adjust the schedule due to seasonal peaks and troughs." The decision comes as Air New Zealand announces increasing direct flights between Tauranga and Christchurch. Kiwi Regional Airlines runs flights to Hamilton, Nelson, Tauranga and Dunedin. It has been operating for six months with one plane, but Mr Wilson says the airline will grow when it's appropriate. A decision on crowd funding has not yet been made. "In our schedule post October our intention is to operate 7 days a week," he says. "We have had a very good first summer and know we'll have an even better second summer." 

Source: http://www.newshub.co.nz/nznews/kiwi-regional-airlines-ditches-chch-flight-plans-2016050311#axzz47Y5oV7iL

14 comments:

  1. Wow that was lucky, was just about to book NSN - CHC - NSN on kiwi in June for somthing different. Was really looking forward to the Saab.
    Oh well back to the good old faithful Koru.

    ReplyDelete
  2. I'm confused. KRA was on record a few months ago saying the operation was not yet covering its costs but increased utilisation was the key to offsetting those fixed costs and would result in at least reaching a breakeven point. So two months down the line they reduce the schedule even more to "hunker down" for winter which actually equals fewer flights to spread those fixed costs across. It to me seems like they throw darts at a board when they put their schedule together with very little market research and then change tact when seemingly things aren't panning out as the thought they would.

    ReplyDelete
  3. Look...we all know that running a small airline is tough.
    KRA is still a fledgling and needs to get through its second summer. A second SAAB needs to find funding as KRA did well with charter flights. This will be the savior over winter as a handful of lucrative hires will occur. KRA have a good little route service already. Personally I would've like to have seen NSN linked direct to ZQN before entering CHC.
    Hunker down and wait for spring.

    ReplyDelete
  4. Bit short notice only 11 days before they were due to start. This will just undermine public confidence and people will more likely avoid them if they ever plan to come back to CHC again. Their plan was to increase their schedules to make the business profitable now they plan to shrink it. Plus the times they wanted to fly here 3pm there is plenty of gates free in the regional terminal. Landing slots should never be a problem to obtain its not as if Christchurch is like Hong Kong!
    Just making up excuses & avoiding the real issues lack of demand maybe the reason.

    ReplyDelete
    Replies
    1. CHC jobs were advertised some time ago, now the employed staff will be down the road before it even began.

      Delete
  5. Hunker down for winter? Why not fly into ZQN (their past issues aside) from the likes of ROT and NSN? Flights into Queenstown are ridiculously expensive all throughout winter (I looked the other day for a weekend trip WLG-ZQN and couldn't find anything for less than $300 return until late October).

    Similarly ROT and TUO are good winter destinations for hot pools etc.

    People don't completely stop leisure travel over winter, they just change destination.

    ReplyDelete
    Replies
    1. Because its a mission to fly to Queenstown and their saab is not suitable for the job

      Delete
    2. Surely you joke? Through the winter sports period you seriously expect to get from Wellington to Queenstown at the weekend for less than $300 return?

      Delete
    3. Not at all. My point is essentially the same as you make: that flights to ZQN throughout winter are more expensive than other destinations.

      Which potentially lends itself well to potential services there rather than having a plane with high fixed costs sitting on the tarmac.

      Delete
  6. I think KRA is expanding to quickly. Anyway, Air NZ is operating Q300's on the CHC/NSN/NSN and Ewan Wilson had said last year that he did not want to compete with Air NZ.

    Adding then deleting new destinations in short space of time, undermines their credibility in the eyes of the travelling public.

    I think KRA should consolidate there current route network,considering KRA only started September 2016, before looking at expansion.

    KRA should wait until the get their second Saab before adding new destinations.

    ReplyDelete
    Replies
    1. Also they run ATR's on the route too.

      Delete
    2. 2015 not 2016. September 2016 hasn't even happened yet

      Delete
  7. In April the key shareholders (Dometts and Kings) took up another 350,000 shares and Guy Domett joined Wilson as a second director. Perhaps there is a more commercial view being taken now of how to develop KRA?

    ReplyDelete
  8. After phoning in to clarify the situation. By June they will release their summer schedule and plan to start flights to Christchurch in October.

    ReplyDelete