Alliance Airlines - Flying Fokkers in New Zealand

Alliance Airlines was established in 2002 when Brisbane based Queensland Airline Holdings acquired the Air Operator's Certificate and assets of the dormant Flight West Airlines, which had ceased scheduled services in 2001. 

In late 2014 Tauck Tours, a US tour operator that specialises in group tours, signed a three year contract with Alliance Airlines who were to operate their Fokker 50, VH-FKO on charter air tours flights in New Zealand. Previously the Tauck charters had been operated by using their Convair 580s, Air National and Vincent Aviation using BAe 146 Whisper Jet ZK-ECO and Air Chathams using Convair 580s. 

Alliance Airline's Fokker 50 arrived into Auckland on the 9th of January 2015 having flown from Brisbane via Norfolk Island. 

Alliance Airline's Fokker 50 VH-FKO arriving into Auckland on 9 January 2015

On the 11th of January 2015 it commenced operations in New Zealand by running a series of training flights for ground staff flying from Auckland to Wellington with the callsign UNITY 541. On the 12th it flew to Blenheim (UTY543) and onto Manapouri (UTY545). 

The Fiordland Advocate reported on its arrival at Manapouri. A private Australian charter company had its inaugural touchdown at Te Anau Airport Manapouri last week. An Alliance Airlines Fokker 50 made its first trip to Fiordland on Tuesday, a training run for staff before tours commence. Alliance Airlines chief operating officer Lee Schofield said they would be conducting the tour twice a week. "Primarily the aircraft is over there for a series of charters for Tauck, a fairly prestigious inbound U.S. tour company." he said. "It is exciting, certainly for us and I daresay for a few of the communities on the route as well." There was potential for New Zealand staff to be recruited once the airline found its feet. and the Fokker 50 would also be available for private charters on its off-days. Mr Schofield said. "There will be some down times and the aircraft will remain in New Zealand for the next four years," he said. "Initially we're crewing from our Australian employees for pilots and flight attendants, but all other services we've contracted New Zealand companies to handle that. Ground handling at Te Anau is all locals." Te Anau Airport Manapouri manager Evan Pearce said, They call it the little Fokker," he said. Alliance had remarked at how professional the service on the ground at Manapouri had been. and the potential for further New Zealand staffing as well as private charters was exciting, Mr Pearce said. At this stage they come into Manapouri at about half past five, then they fly directly to Auckland. If we can get the aeroplane to stay overnight that would give more options to locals." 

From Manapouri the aircraft flew to Queenstown on the 12th (UTY540), on the 13th to Rotorua (UTY546) and back to Auckland on the 14th (UTY548). 

Alliance Airliners operated its first Tauck Tour flights on the 17th of January 2015 with the Fokker 50 VH-FKO positioning from Auckland to Wellington (UTY541), before flying to Blenheim (UTY543) and on to Manapouri (UTY545) before positioning back to Auckland (UTY540). 

The standard Tauck Tour started in Wellington with passengers flying to Blenheim and later to Manapouri. They next picked their plane up at Queenstown and flew to Rotorua. After their stay in Rotorua they flew on to Auckland. 

Two other flight patterns were flown. One was positioning from Auckland to Queenstown (UTY541) before flying to Rotorua (UTY546) and then positioning back to Auckland (UTY548). 

The other was positioning from Auckland to Wellington (UTY541) before flying to Blenheim (UTY543) and Te Anau (UTY545) and positioning into Queenstown (UTY540). After overnighting at Queenstown it then flew to Rotorua and (UTY546) and back to Auckland (UTY548). Each of these three flight patterns were flown nine times before end of the March. 

The Tauck Tours flights 2015. (The map don't indicate the positioning flights).

Waiting for its next NZ Tauck Tour, Alliance Airlines' Fokker 50 at Auckland on 1 February 2015

Arrive Wellington

Your most comprehensive of New Zealand tours begins at 5:30 PM at the Copthorne Hotel Wellington, Oriental Bay. A transfer is included from Wellington International Airport to the Copthorne Hotel Wellington, Oriental Bay, overlooking Wellington’s harbour and convenient to the city center. Join us for a welcome reception followed by dinner at the hotel.

Wonders of Wellington

Discover Wellington on a tour that begins city center with a cable car ride up to the city’s Botanic Garden to see the award-winning rose garden and great views of the city, harbour, and Parliament Buildings. Next up is Te Papa Tongarewa, New Zealand’s national museum, where you’ll have a guided orientation to its five floors focusing on the country’s exceptional nature, art and history, the South Pacific region, and Maori culture. Touring its exhibits is like actually experiencing thousands of years of New Zealand's history in person, as motion simulators and interactive exhibits include you in the journey. Dinner tonight is a "dine-around" from a choice of Wellington restaurants.

Fly to the Marlborough Sounds & Te Anau

Tauck puts a charter plane at your service today, taking you first to Blenheim for a visit to the Marlborough Sounds on New Zealand's South Island. Besides producing great wine, this island boasts delectable freshly caught seafood, including green-lipped mussels; sample them, along with local wines, on a luncheon cruise that celebrates New Zealand's bounty. Then fly off aboard Tauck's exclusive charter to Manapouri (Te Anau) in the magnificent Fiordlands region, for two nights at an ideally located hotel, where you'll attend a "Taste of Fiordland" dinner at your leisure this evening.

Fiordland National Park & Milford Sound

This most comprehensive of New Zealand tours continues as you take a dramatic drive through the unparalleled scenery of the South Island's Fiordland National Park for a luncheon cruise – aboard a private boat and accompanied by a naturalist guide – among the sheer cliffs and glacier-hewn inlets of beautiful Milford Sound. The evening is at leisure back at your hotel in Te Anau, where an à la carte dinner is included.

To Queenstown and lunch at a winery

Make your way across more beautiful South Island landscapes to Queenstown, where you'll enjoy lunch at the Amisfield Winery, set in an iconic stone building with gorgeous mountain views and known for its Pinot Noir. Your hotel for the next three nights, the Sofitel Queenstown Hotel and Spa, exudes French-inspired sophistication in the heart of the city.

Adventures by jet boat & 'copter in Queenstown

Even if you're not all that adventurous, today's thrilling high-speed jet boat ride* through the rapids and narrow gorges of Skippers Canyon on the Shotover River – followed by a helicopter ride* to the summit of Bob's Peak – will both be memorable highlights of Tauck's New Zealand tour! Afterwards, head back down the mountain via Skyline gondola to spend the rest of the day as you wish in Queenstown.

Lake Wakatipu cruise & South Island country life

From Queenstown, cruise across Lake Wakatipu aboard the historic steamer TSS Earnslaw today, continuing to the Walter Peak High Country Farm. Here, in the heart of New Zealand's South Island countryside, you'll watch farm dogs rounding up sheep, learn how shearing has been done through the ages in a private demonstration for Tauck guests only, and enjoy a wonderful barbecue dinner before returning to Queenstown for the night.

Charter flight to Auckland & Maori culture

Travel via Tauck's private charter flight from Queenstown to Auckland today for a two-night stay, arriving in time for lunch at a local restaurant. Enjoy an afternoon visit to the Auckland Museum with a Maori cultural presentation and music concert. Have dinner at your hotel tonight.

Wine tasting & lunch on Waiheke Island

Depart from Auckland’s Ferry Terminal and head to nearby Waiheke Island, a mecca of farmland, forest and beaches – and vineyards; enjoy a unique wine tasting and lunch at Mudbrick Vineyard. Ferry back to Auckland for some leisure time. Then join us this evening for a farewell cocktail reception and dinner at your hotel in the heart of Viaduct Harbour, a fitting finale to the most amazing of New Zealand tours!

Homeward bound

Tauck's 10-day New Zealand tours end in Auckland. Fly home anytime. A transfer is included from Sofitel Auckland Viaduct Harbour to Auckland Airport. You should allow three hours for check-in at the airport.

Alliance Airlines' Fokker 50, VH-FKO, bowed out of New Zealand skies on the 9th of January 2019 departing Auckland for Norfolk Island, Brisbane and Adelaide. The MRC Aviation blogspot reported that its final charter was to have been two days earlier with it positioning from Auckland to Queenstown to then fly passengers back to Auckland, but poor weather at destination saw it divert to Christchurch then position back to Auckland. 

On the 14th of January Alliance Airlines' Fokker 70 VH-NKU arrived into Wellington to operate Wellington-Woodbourne-Manapouri-Wellington on the 15th of January. The Fokker 70 subsequently became unserviceable soon and was replaced by VH-QQX which flew Woodbourne-Manapouri- Queenstown-Auckland-Wellington on the 20th.

Alliance Airlines' Fokker 70 VH-QQX jettting into Auckland on 20 January 2019

 

After this the Tauck Tours flights were operated by Air Chathams' ATR 72s.

While this was the end of regular flying in in New Zealand skies Alliance Airlines crossed the Tasman on charter flights a couple more times. The airline's Facebook page reported on two aerial tours of New Zealand in early December 2019, both flown by Fokker 70 VH-JFB. The first, which was posted on the 4th of December 2019 reported that Alliance had been flying the Chairman, Board Members and some of the senior management of Japan's air conditioning manufacturer Daikin from Sydney to Queenstown. VIP catering was delivered on board by the crew, with flower arrangements placed on the carts in Daikin’s corporate colours. Alliance's GM Flight Operations and Chief Pilot, Gerard Byrne, said "Recently I captained a charter from Sydney to Queenstown for executive client Daikin. Queenstown is a very demanding airport to fly into, but the scenery is breathtaking. It is one of those 'bucket list' airports for most pilots.” 

A second post on the Facebook page on the 19th of December 2019 reported on an Australian and New Zealand Multi-Sector Tour. Alliance Airlines welcomed almost one hundred tourists from the Netherlands recently who travelled around Australia and New Zealand on their business-class Fokker 70 VH-JFB jet aircraft. They visited Sydney, Hobart, Hamilton Island, Ayers Rock and Queenstown (pictured). Alliance’s VH-JFB has been popular with tourist and VIP groups from around the world. Alliance’s Dutch client Air Cruise Collection stated, “Alliance’s service, perfect catering and hospitality was outstanding.” “You can bring people to beautiful places, but the aircraft and crew is so important - that's half the success.” A benefit of Alliance’s customised charter flights is the opportunity to include aerial sightseeing as part of any flight. Alliance Airlines operates aircraft charters throughout Australia, New Zealand, the Pacific Islands, and South East Asia. 

Alliance Airlines' Fokker 70 VH-JFB in Queenstown in December 2019. Photo : Alliance Airlines Facebook Page

Alliance Airlines, and the other operators of the Tauck Tours, aerial tours of New Zealand are perhaps a reminder of Mount Cook Airline's 748 days when customised aerial tours of New Zealand was an important part of their operation. Alliance also bought two interesting types to New Zealand that had not previously seen service here and so the airline's operations add another interesting snippet to tourist flying in New Zealand.  

North Shore Monday

Barrier Air Cessna 208B Grand Caravan EX ZK-SDA with a full load departing North Shore for Great Barrier Island on 7 July 2025

My first sighting of Sling Aircraft Sling 4 TSi ZK-DBV at North Shore on 7 July 2025

Beech A36 Bonanza DPT at North Shore on 7 July 2025

Bell Jetranger ZK-HGD at North Shore on 7 July 2025

Robinson R44 Raven ZK-ITS at North Shore on 7 July 2025 

 

Vans RV-12 ZK-SCM at North Shore on 7 July 2025

Another Ouch for Westport

 

It looks like Originair continues to struggle on the Wellington-Westport route. 

Originair started serving Westport on the 3rd of January 2025 and initially offered 6 flights a week. The schedules offered were not tailored for business customers and the reduction indicates the leisure market isn't enough to sustain the schedule offered.

From the 15th of May the airline cut its Tuesdays and Thursdays flights to Westport with the last of these being operated on the Tuesday the 13th of May 2025. 

From the 1st of August 2025, according to the airline's website, no Sunday services will operated between Wellington and Westport.

As much as I admire Originair's tenacity in taking on Westport their timetabling hasn't helped. It is the business traffic that will pay the bills and the current schedule does not suit business people travelling to or from Westport. 

One wonders what will happen to these regional services operated by the independents and Air New Zealand. Will the Government act? 

Sunair Kaitaia Schedule Started

 

Sunair have officially launched their new weekday air service between Kaitaia and Whangārei today, the 7th July 2025. 

The first flights, SAV 11, from Kaitaia to Whangārei and SAV 12 from Whangārei to Kaitaia were operated in Piper Aztec, ZK-DGS. 

A statement on Sunair's Facebook page said, After supporting the region by flying medical staff between Kaitaia and Whangārei, we’re now thrilled to open this service to the public. Whether you're heading to an appointment, connecting with whānau, or travelling for work—this is a fast, convenient option for Northlanders.

Still Flying Despite Receivership

Long-established air freight company Airwork Group has been placed into receivership. Airwork, whose New Zealand roots trace back to 1936, has a fleet of Boeing 737 freighters and operates an air freight, maintenance, and aircraft leasing business. The company was briefly listed on the stock exchange in 2013 before a Chinese company, Zhejiang Rifa Holdings, took it private in 2017. Brendon Gibson, Daniel Stoneman and Neale Jackson of Calibre Partners were appointed as receivers. They said the move was made after a shareholder breached the company's banking facilities during the sale of the business. "This step has been taken to facilitate a structured process to identify a new owner for the business," Gibson said. "The trading performance of the business underpins the strategy to continue to trade with the support of the financiers, customers, and key suppliers with a view of immediately commencing a going-concern sale process for the New Zealand and Australian businesses and assets." In recent years, Airwork racked up hundreds of millions of dollars of losses after five of its six Boeing 757 freighter aircraft were trapped and illegally seized in Russia after the country invaded Ukraine. That forced the company to write off its value, and it became trapped in litigation with its insurers. The company sold its helicopter operations in 2022 and has since sold several surplus aircraft and engines to try and stay afloat. More recently, Airwork defaulted on a USD$83.5 million bank loan. The company employs around 180 people in New Zealand and Australia.

Source : https://www.stuff.co.nz/nz-news/360744516/airwork-group-grounded-russian-seizures-and-growing-debt-sink-nz-aviation-firm

NZX I ASX ANNOUNCEMENT 2 July 2025 UPDATE ON PARCELAIR JV PARTNER 

Freightways and Airwork Holdings Limited (Airwork), each through a subsidiary, are 50/50 joint venture partners in Parcelair Limited (Parcelair), that provides services to the Freightways network. Freightways is aware of the appointment of receivers to Airwork and certain Airwork subsidiaries. The receivers have announced an intention for Airwork to continue to trade as a going concern. Freightways will continue to closely monitor the situation with Airwork and, if necessary, has a contingency plan which can be implemented on short notice and with minimal operational impact. 

For further information please contact: Stephan Deschamps Chief Financial Officer Freightways Group Limited 

My profile on Airwork (NZ) can be found here : 

https://3rdlevelnz.blogspot.com/2024/04/airwork-nz-pioneer-company-still-flying.html

Sunair Adds Kaitaia to its Schedule

Sunair's latest timetable, which becomes effective on the 7th of July 2025, lists Kaitaia as a destination for the first time. Sunair has been a regular visitor to Kaitaia since August 2016 when it took over providing over the medical staff flight between Whangarei and Kaitaia from Barrier Air who retired its Piper Chieftains from its fleet. Sunair operates one to two flights per day, normally about four days a week. 

In Sunair's new schedule, Monday to Friday Kaitaia to Whangarei flights are being offered departing Kaitaia at 9.00am, after the arrival of the medical flight, and the return flight Kaitaia is being offered departing Whangarei at 5.00pm. This enables a full day of business in Whangarei for Kaitaia residents.

Fua'amotu this Week

It was pretty miserable weather in Tonga the last few days but did manage to catch the locals in action

Lulutai Airlines' Viking DHC-6-400 Twin Otter A3-KLT arriving from Ha'apai on 23 June 2025 

Lulutai Airlines' Harbin Y-12 A3-SPV departing for and returning from 'Eua on 24 June 2025 

Air Chathams Saab 340 ZK-CIZ returning from Vava'u after at a missed approach on 24 June 2025

My ride home - Air New Zealand Airbus 321 Neo ZK-NNG arriving from Auckland on 25 June 2025

 

Second Southern Lease

 

Yesterday, the 23rd of June 2025, Barrier Air's Cessna 208B Grand Caravan ZK-SDG flew from Auckland to Wanaka. After a local flight yesterday it has flown on to Queenstown on lease to Milford Sound Flights for these quieter months for Barrier Air. It joins sister Caravan ZK-SDB which is on lease to True South for the winter.

Dunedin Regains International Flights

Dunedin regains international flights today as Jetstar launches international flights from connecting the southern city with the Gold Coast. The Dunedin Gold Coast flights are being offered three days a week. Dunedin lost international flights when Virgin Australia pulled out in March 2020 as the Covid pandemic caused the cessation of services.

Jetstar is operating its first Gold Coast-Dunedin-Gold Coast flights today, the 24th of June 2025, with Airbus 320 JQ190 doing the honours flying from Coolangatta to Dunedin as JQ189 and the return as VH-YXS.

The Dunedin Gold Coast flights are being offered three days a week.

From 24 June 2025

Flight  Frequency          From  To          Depart  Arrive 

JQ190  Tues, Thurs, Sat  DUD  OOL  1545*  1725 

JQ189  Tues, Thurs, Sat  OOL  DUD  0925  1445*

Second International Destination for Hamilton

 

Jetstar is today launching its second new service into Hamilton within a week. The airline is operating its first Gold Coast-Hamilton-Gold Coast flights today, the 18th of June 2025, with Airbus 320 VH-VQF currently crossing the Tasman. The Airbus is flying Coolangatta to Hamilton as JQ163 and the return as JQ164. This is the first time that Jetstar has flown between the Gold Coast and Hamilton,

The Hamilton Gold Coast flights are being offered three days a week.

From 18 June 2025

Flight  Frequency       From  To          Depart  Arrive 

JQ164  Wed, Fri, Sun       HLZ  OOL  1230*  1420 

JQ163  Wed, Fri, Sun       OOL  HLZ  0620  1130*

*Non daylight savings time

Jetstar Launches New Hamilton-Sydney Service

 

Jetstar is today operating its first Sydney-Hamilton-Sydney flights today, the 16th of June 2025 with Airbus 320 VH-XSJ currently crossing the Tasman as it operates Hamilton's first scheduled international flights in 13 years. The Airbus is flying Sydney to Hamilton as JQ165 and the return as JQ166.

The Hamilton Sydney flights are being offered four days a week.

From 16 June 2025

Flight  Frequency                  From  To          Depart  Arrive 

JQ166  Mon, Tues, Thurs, Sat  HLZ  SYD  1205*  1335 

JQ165  Mon, Tues, Thurs, Sat  SYD  HLZ  0615  1115*

*Non daylight savings time

Links to the airlines that have operated international services to Hamilton can be found here :

https://3rdlevelnz.blogspot.com/2020/02/hamilton-international-index-of-posts.html

Caravan for Sale

There has been quite a bit of media reporting on the current struggle of New Zealand's regional airlines with much of the focus being on Sounds Air and Air Chathams. In the latest development Barrier Air has put its sixth Cessna Grand Caravan on the market. Cessna 208B Grand Caravan EX ZK-SDA entered service with Barrier Air on the 23rd of October 2024, flying GB 713 to Kaitaia and the return flight GB 714. 

Barrier Air's Cessna 208B Grand Caravan EX ZK-SDA at Whitianga on 2 June 2025

In addition to this Barrier Air's Cessna 208B Grand Caravan ZK-SDB is on lease to True South at Queenstown over the winter months. 

Barrier Air is unique in that it faces a vastly different seasonal capacity issue with a massive demand for flights to Great Barrier Island in the summer and a much reduced demand in winter. Despite the impending sale no routes are being dropped as Barrier Air seeks to manage capacity and viability.   

See : https://www.controller.com/listing/for-sale/245391931/2022-cessna-caravan-208b-grand-ex-turboprop-aircraft 

Newest Airbus 321 Enters Service

 

Air New Zealand's newest Airbus 321, ZK-NNH, entered service this morning, 12 June 2025, flying NZ143 from Auckland to Brisbane. It is scheduled to return as NZ142 later today. The Airbus arrived into the country on the 3rd of June 2025.

City Shuttle - Air New Zealand's Helicopter Service

 

New Zealand has had only two scheduled helicopter-operated air services. Both were short-lived. 

The second, that operated during the summer of 1991/92, was operated by Vincent Aviation between Wellington and Picton in a joint venture with Helicopters (NZ) Ltd using one of their Bell 212 helicopters which could carry twelve passengers. The timetable showed flights would operate on Friday and Sunday evenings with a fare of $111. Additional flights were scheduled over the Christmas holiday period. 

The first scheduled helicopter service was designed to overfly Auckland traffic. The company that operated it, Heli Taxis Limited, was founded on the 4th of August 1987, by Arthur Young. The company was contracted by Air New Zealand offer the helicopter service which flew under the name of “City Shuttle.” Flights operated between Auckland International Airport and Mechanics Bay near downtown Auckland, the service starting on the 15th of June 1988 using Agusta A109A II ZK-HBC (c/n 7122). 

NZ Herald, 13 June 1988 

Prior to the service’s commencement media representatives were given an opportunity to sample it. On the 14th of June 1988 the Christchurch Press published the impressions of Les Bloxham, the newspaper’s travel editor… 

Passing everything in sight, I simply flew along Auckland’s southern motorway at 240km/h yesterday but didn’t cop a ticket. In fact the cops would have had difficulty in keeping up for I was 300 metres above the road in Air New Zealand’s new “city shuttle” helicopter. The seven-minute link between Auckland Airport and Mechanics Bay, on the downtown waterfront, was unveiled to journalists yesterday. It will be available to the public from tomorrow at $60 a seat — double the charge by taxi and about eight times as much as a ticket on the Airporter bus, both of which take about 30 minutes depending on traffic. Strictly speaking, the complete journey by city shuttle takes 15 minutes allowing for the time to travel by road from Air New Zealand’s downtown terminal to the helipad at Mechanics Bay. 

Passengers in a hurry, however, stand to save at least 15 minutes, possibly more at peak time. One of the advantages offered by the new service is the check-in facility at the airline’s downtown travel centre. Passengers get their boarding passes there and can make a gate-to-gate transfer after arriving at the airport by helicopter. Air New Zealand’s new chief executive, Mr Jim Scott, said the airline was proud to be providing “this innovative service.” “It is yet another manifestation of the national carrier's commitment to provide the best services for every type of passenger. “We are confident the service will meet a need that will be well supported.” 

The helicopter will be run by an Auckland company, Helitaxis, Ltd, under contract to Air New Zealand, using a six-seat Agusta 109 twin engine machine. The airline has given consideration to the flight path to keep the helicopter away from residential areas. It follows the motorway before flying over commercial land at Otara.

A cover shot for New Zealand Wings, Agusta 109 ZK-HBC flying past Air New Zealand's building in downtown Auckland. Source : NZ Wings, July 1988

Meanwhile, Ross MacPherson made a nice connection in July 1988 issue of Wings...  Air New Zealand is going back to its roots. Not for any reasons of nostalgia - the current climate does not allow for much of that - but to launch a new customer service based on Auckland. TEAL, Air New Zealand's international predecessor, began its trans Tasman operation out of Mechanics Bay on Auckland, city waterfront with Short S.30 flying boats in April 1940.1t was a harbour front connection that was to conclude with the by Solent flight from Fiji in September Now Mechanics Bay figures once again on Air New Zealand schedules. this time as the city terminus for an innovative helicopter shuttle service to Auckland International. 

City Shuttle's Agusta 109 at Ardmore in August 1988. Photo : B Kerr Collection

Seven return flights were operated each weekday, with the first flight departing from the airport at 8.15am, arriving at Mechanics Bay at 8.25am before departing back to the airport at 8.35am. The last service of the day departed Mechanics Bay at 5.55pm with the flights per day from Monday to Friday have been timed to coincide with Air New Zealand’s flights to and from Wellington and Christchurch. At Auckland International flights operated from Gate 27, beside the airbridge at the Air New Zealand domestic terminal. 

On the 21st the Press reported that Air New Zealand is pleased with the response its new City Shuttle helicopter service has received in its first week of operation. The scheduled flights have brought downtown Auckland to within seven minutes of the domestic, terminal at Mangere. The service is being provided under contract for the airline by Helitaxis, Ltd, from Its base at Mechanics Bay. Passengers are transferred between the heli-pad and Air New Zealand’s downtown travel centre by mini-bus, a trip that takes about three minutes. The bus is also available to passengers wanting to be dropped off at other Auckland central-city locations. Passengers who book for a City Shuttle flight (and reservations are essential) receive their domestic flight boarding passes at the downtown travel centre. They can then directly board their aircraft after the helicopter lands at the domestic terminal.

The Press, 21 June 1988

The June 1988 edition of Aviation News gave more information on the Agusta helicopter. Air New Zealand's "City Shuttle" service will be operated by an Auckland company - Helitaxis Ltd - under contract to the airline, using a six-seater, Agusta 109 twin engined helicopter. This helicopter type is extensively used for executive transport as well as air ambulance service when patient comfort necessitates quietness, safety, mobility and speed… The Agusta has several advantages for this particular operation: The four-bladed, twin engined is a good neighbour and in fact of being the quietest helicopter type in service in New Zealand. It is also fast, cruising at 155 knots. Its retractable undercarriage allows the helicopter to taxi right up to the airport gate at Auckland airport and the newly refurbished, executive interior will provide for a comfortable ride. 

The Press, 13 July 1988

In addition to the scheduled work the Agusta operated scenic helicopter flights from Mechanics Bay in the weekend.

City Shuttle's Agusta 109 ZK-HBC offering scenic flights at Mechanics Bay in 1988. Photos: L Acket

In December 1988 a notice in the New Zealand Gazette seemed to indicate there were problems brewing. On the 19th of December 1988 Air New Zealand filed an application for the winding up of Helitaxis Limited by the High Court. The order sought is an order that Air New Zealand Limited purchase the shares of Thomas Williams Nominees Limited, and A. W. Young in Helitaxis Limited, at a price to be fixed by arbitration in accordance with the provisions of the Arbitration Act 1908. 

In January 1989 the City Shuttle service, having failed to gain sufficient patronage, ceased operating. 

Within a few days of this the Press reported that Air New Zealand is being sued for $41.3 million by the company which operated the city-to-Auckland Airport helicopter passenger shuttle for the airline. The service ceased operating earlier this month, apparently because of insufficient patronage. Air New Zealand had opted out some time earlier, however. Heli Taxis Limited is claiming that the airline is in breach of a contract by not only not promoting the service, but by discouraging its use. It alleges that Air New Zealand "absolutely refused to promote it, so that the service is in disuse." The agreement was for a minimum of 15 years and Heli Taxis calculates it will lose $41.3 million over that period in earnings. The estimated first-year return of $574,000 was expected to increase by a minimum of 20 per cent a year. It claims that the airline withdrew Heli Taxi's domestic terminal and landing facilities at the beginning of December and forced it to relocate. Heli Taxis is seeking $41.3 million in damages and a High Court order directing Air New Zealand to promote and utilise its service. It also wants the airline to be restrained from encouraging its passengers to travel between the airport and the city by any way except its helicopter service. Under the contract Air New Zealand agreed to purchase a minimum of 750 flights a year at an initial rate of $1640 per flying hour. Air New Zealand says it will fight the action. 

So ended New Zealand's first scheduled helicopter service.