Westport grounded again?

 

Originair is hoping for a lifeline from the Government so it can continue direct flights between Wellington and Westport, as the regional airline grapples with high fuel costs.

This could be the final week of the flights, with Originair saying its current support arrangement runs out at the end of this week.

Development West Coast has been helping keep the twice-weekly service going, even offering free return flights to Wellington, in an effort to boost demand for the route.

In March, Originair confirmed it could no longer sustain the losses on the route, fewer than 18 months after taking over.

Managing director Robert Inglis said fuel price rises resulting from the Middle East conflict were the final straw. The service was costing Originair’s shareholders about $500,000 a year, he said.

Inglis told Morning Report the cost of running it remained too high.

“We’re not in a position really to jeopardise the rest of our network by continuing it,” he said.

“During the period we’ve been operating it’s probably averaged around 60, 70 per cent load factor, really the yield hasn’t been high enough to cover the increases in fuel costs recently.

“We need about 70 per cent load factor and around about 350 net fares to be able to operate it. What Development West Coast has generously done for us is topped that up for the last three months to allow it to continue, we’re capable of continuing the service but do we need some support.”

Inglis said the airline was hoping it could get funding from the Government.

“We’ve suggested to government they just change the criteria of their regional development funding to allow some annual support until New Zealand’s economic condition improves,” he said.

“A great deal of New Zealand’s growth is coming from the regions at the moment... I don’t really see how the area can grow without a service. I believe there’s a meeting with the ministers involved early next week.”

MBIE has been approached for comment.

Source: NZ Herald 

At this stage the last flight is set for this Friday, 28th August - LF