Photo source: Flight Global
Air New Zealand is facing scrutiny following its recent decision to reduce flight routes and capacity, a move that has raised concerns among regional communities.
The airline announced it would be replacing larger jets with smaller twin-engine turboprop planes on some flights to Queenstown and Dunedin, resulting in a loss of over a hundred seats per flight.
Additionally, the airline will cut three flights per week on the Christchurch to New Plymouth route and will discontinue direct flights from Invercargill to Wellington starting January next year.
Scott Carr, Air New Zealand’s domestic manager, defended these changes during an interview, stating that the adjustments are not driven by profit motives but rather by the need to address significant losses in these markets.
“This is definitely a challenging situation, we care because we continue to operate those services and this isn’t about profits, this is about actually stemming significant losses we make in those markets,” he said.
Carr emphasised that the airline has a responsibility to connect New Zealanders while making sensible business decisions.
The airline’s capacity adjustments come amid a 30% drop in government travel and ongoing engine issues affecting several aircraft. Carr acknowledged that these factors have severely impacted revenue.
“Some of these markets, the government travel’s down by as much as 30 percent, and that really does hit the revenue line very significantly,” he added. Carr further noted that Air New Zealand aims to maintain service across the country, but it cannot justify subsidising unprofitable routes.
Community reactions have been mixed, with some residents expressing frustration over reduced accessibility to essential travel routes. Concerns have been raised about the implications of these cuts on local economies and connectivity.
Carr mentioned that Air New Zealand is committed to its social responsibilities, but it must also meet obligations to stakeholders and shareholders.
“We have stakeholders and shareholders, government and other stakeholders that we have to meet obligations to, so we do need to be profitable,” he stated.
Looking ahead, Carr indicated that there may be future opportunities for reinstating some routes once operational challenges are resolved. However, he cautioned against making guarantees.
“I can’t guarantee anything, I’m not a fortune teller, so who knows what it would be like in three years’ time.”
While Air New Zealand tackles these challenges, maintaining a balance between profitability and regional service will continue to be a key priority for the airline and the communities it supports.