Smaller airlines are in the wings ready to swoop if Air New Zealand ditches more regional routes, and the national carrier is getting the hard word to help third tier operators that step up when it bows out. Chathams Air has already expressed an interest in taking over the Kapiti to Auckland service from Air New Zealand which ended on Tuesday. Sounds Air and Barrier Air both are eager to expand further but were tight lipped about the destinations they were eyeing up. Sounds Air's Pilatus PC12 service from Westport has been a hit with local mayor Garry Howard, but he wants Air NZ to sign an interline agreement to ease the way for passengers. Having already taken on services between Wellington, Westport and Taupo, and between Blenheim and Christchurch, Sounds Air chief executive Andrew Crawford said they were looking at what other routes Air New Zealand could pull out of. "We're not looking to compete head to head with Air New Zealand or Jet Star, we just haven't got the ability." After a bumpy start Barrier Air cut back from three return flights a day between Kaitaia and Auckland to just one, but chief executive Nick Pearson said business was building and the airline wanted to expand into other regional areas. "We've learned some lessons from Kaitaia and we're very excited if the right thing comes up". Aviation consultant Irene King believes Air New Zealand may reconsider its Auckland Whangarei service during the day, and said it could opt to pull out altogether. The service has been the focus of complaints about flight cancellations, particularly on Friday nights, and King said the larger airline also faced constraints on loadings during certain weather conditions. "It's about the economics of smaller airlines carrying less overheads, they have older aircraft which are not as fuel efficient, but on the other hand, they don't have the high capital costs associated with them." Third tier operators were also eager to get an interline agreement with Air New Zealand so passengers could check their bags all the way through if they were catching connecting flights. An earlier Sounds Air request for an interline deal was turned down but Crawford said they had not given up on the idea. "Two or three years ago, yes the technology wasn't there, whereas we've certainly got it now." Buller District mayor Garry Howard said he was very happy with Sounds Air's service between Westport and Wellington. It ran at much more convenient times compared with the previous Air New Zealand timetable which meant passengers had to spend two nights away to get a full day in the capital. "It turned a one day event into a three day episode. Now I can leave at 6.15am and I'm in Wellington at 7am … I can attend anything I like and be back for tea that night." However, he said the lack of an interline agreement was inconvenient and Air NZ would gain a competitive advantage by making it easier for passengers to check their bags through, "Air New Zealand has lost its status as our national carrier because it's not a provincial service provider, it has decided to it's a volume provider out of the cities and I personally believe they will regret this." Sounds Air's service between Wellington and Taupo, which it took over from Air New Zealand, is so popular Taupo mayor David Trewavas said they might need to look at increasing the service or using a larger aircraft than the 9 seat Pilatus PC12. "It goes higher and faster than Air New Zealand. It's just like a corporate jet, 40 minutes and we're in Wellington." But he agreed with Howard that the inability to use Koru lounges or to check luggage through was an inconvenience customers could do without. Air New Zealand said it did not have any interline agreements in place with domestic carriers. Such agreements tended to be between large international long haul carriers that were able to easily meet the significant requirements including, for example, having compatible booking systems, said the airline.
I wish they would get the name right... Air Chathams... NOT Chathams Air
Air New Zealand does codeshare with Air Rarotonga for flights between Rarotonga and Aitutaki. Air Rarotonga operate a Saab 340 (the same as Air Chathams use) on this route
I can't see interline agreements with Sounds Air. As I understand it Air NZ will only deal with Multi Turbine.
ReplyDeleteYes, you are correct. Its one one many criterias. The only possible candidate would be Air Chathams with the Saabs. I don't see that happening anytime soon, despite Air Chathams having a good relationship with Air NZ.
DeleteHow is this correct? Sounds more like speculation
DeleteWhy should Air NZ interline with domestic competitors.
ReplyDeleteAir NZ competes with Barrier Air at KKE for KAT pax.
Air NZ competes with Air Chathams at TRG for WHK pax.
Air NZ competes with Air Chathams at PMR for WAG pax,
Air NZ competes with Sounds Air at ROT for TUO pax.
Air NZ competes with Sounds Air across Cook Strait.
Air NZ would compete with Air Chathams at WLG for PPQ pax.
Correct, route consolidation; brought about by customer pressure to deliver, aircraft of size, frequency and price.
DeleteSurely the Star Alliance would have kittens with pax transferring onto a Cessna Caravan
DeleteBingo! And that's where it lies. I read somewhere SA requires stand up cabins on members aircrafts. Hence why the Metroliners were disposed of and the 1900Ds and their stand up cabins were introduced.... I am not sure where I read this, but it makes sense.
DeleteYip Star Alliance has some very strict criteria, there has to be a toilet on board too. That’s why the B1900D that Eagle purchased where the only 16 delivered with toilets. Saab is the only aircraft that meets the criteria at the moment.
DeleteWith regards to the subject of interlining, Air NZ is correct, that interline agreements are really designed for large international carriers and becomes difficult for small second level regional carriers due to the complex rules around seat reservations, baggage handing, passport/immigration scanning and reporting, multiple global reservation systems connectivity, airport check in, etc. This is why Air NZ owns two independent airlines - Air Nelson and Mt Cook Airlines to handle its regional services.
ReplyDeleteWhilst Air Chathams and Soundsair uses the same flight operations and passenger reservation management system, this system is not compatible with Air NZ system - CARINA. The cost to integrate the 2 systems would be very expensive due to low passenger numbers involved. Secondly the system that Air Chathams and Soundsair use is designed for small independent 2nd and 3rd level carriers.
With regards to co-share agreements between Air NZ and Barrier Air, Soundsair and Air Chathams this could be done with Air Chathams only, as they operate the 34 seater Saab aircraft but not with Soundsair and Barrier Air, as they operate aircraft that have 12 seats or less which would be uneconomical for both the smaller carriers and Air NZ. It Air NZ did a co-share, like using a Air NZ flight number, it most likely be with Air Chathams, as Air NZ would take all 34 seats to make it economical for Air NZ. In essence it would an Air NZ flight, operated by Air Chathams in Air NZ livery.
By the way, you can not book Rarotonga to Aitutaki via Air NZ reservation system only Auckland to Aitutaki. This means, Air Rarotonga has blocked probably 8-10 seats on the Saab for Air NZ use and these seats have been loaded into Air NZ's reservation system.
There are simple cost effective ways around it, if airnz chose to to it.
DeleteBest example of this was the QF/Origin extensive codeshare agreements.
It can be done but one party does not what to entertain the idea of a code share.
ReplyDelete