Hawke's Bay runway cleared for takeoff

Hawke's Bay is set to enter the jet age with the long-awaited go-ahead for the region's runway extension and plans for a major airport development.

The runway will cost $9 million and is predicted to pump more than $40m into the regional economy each year, reduce airfares and create jobs.

The new airport company is expected to announce today the first stage of its plan for a 600-metre runway extension.

At least one airline, Jetstar, is already considering flying jets into Hawke's Bay when the runway is completed, ending Air New Zealand's monopoly and possibly sparking a ticket price war.

Hawke's Bay leaders and residents have complained for years about the high fares charged by Air New Zealand.

The airport company is also now ready to develop a business park on land it owns near the terminal.

The existing 1300m runway is not long enough for a fully laden jet. Commercial services – for more than 400,000 passengers a year – are provided by turbo-prop aircraft run by Air Nelson, an Air New Zealand subsidiary.

The runway extension is to be completed before the 2011 Rugby World Cup, which features two matches in Napier.

Napier Mayor Barbara Arnott said the development would create many jobs in the construction sector.

"It will enable charter flights to come in with fully laden jets for tourists, special events or conferences.

"And it won't cost ratepayers anything, as the airport authority can fund the work from its reserves and loans. There will be no surcharge for passengers, either."

However, Mrs Arnott did not expect the airport to handle regular direct flights to Australia in the foreseeable future.

The business park needed resource consents before work could start but it had already lined up an air ambulance and associated aviation services, she said.

Jetstar spokesman Simon Westaway said the airline was planning to expand its operations in the next 12 to 18 months and it would welcome an approach from the airport's owners.

"That's really exciting news. Making it jet-capable certainly means an airline like ourselves would consider flying there in future."

Qantas spokeswoman Kristy McSweeney said the airline had no plans to start flying to the region. Air New Zealand has said it does not want to fly jets into the airport.

Hawke's Bay Chamber of Commerce chief executive Murray Douglas said a 2007 consultants' report found a longer runway would benefit the regional economy by $43m a year. The extension plan was one of the main reasons Air New Zealand recently cut some regional fares. "They knew the extension was coming and were positioning themselves to head off any competition."

The Hastings and Napier councils, which between them own half the airport, have been keen to lengthen the runway but the project has been held up by the Government, which owns the other half.

Transport Minister Steven Joyce was unaware of any imminent announcement on the airport. "I know the local councils are keen to advance that," he said.

- © Fairfax NZ News