Airline cans city-Aussie flight plans

BY EVAN HARDING

The Invercargill City Council has copped flak from the business sector after yet another airline pulled the pin on plans for trans-Tasman flights into Invercargill.

Pacific Wings has pulled out of negotiations with the council-owned holding company Holdco to fly in and out of the city.

It is understood to be the fourth trans-Tasman airline to consider the Invercargill route in recent years before opting out.

Disappointed Holdco chairman Norman Elder yesterday confirmed the airline would not be coming south, saying Pacific Wings had analysed its tourist numbers from Australia's east coast to New Zealand and decided it wasn't going to be viable.

"We are a bit disappointed because it was looking a wee bit positive there. We have gone a long way down the track trying to accommodate them," Mr Elder said.

Chamber of Commerce chief executive Richard Hay yesterday suggested it might be time the city council sought help from the business sector when negotiating with the next airline.

"We haven't been party to any of the latest approaches; that's been done in secrecy.

"It might have been a little bit helpful if they had included some outside business interests," Mr Hay said.

"It's very disappointing that all the time and expense and effort that's been put into this hasn't, to date, been fruitful."

Trans-Tasman flights would open up opportunities for business in the south and be beneficial if the likes of oil and gas exploration commenced, he said.

"We can't just write this off. We must keep trying. We have an investment we have made (international-sized runway) and we must try to collect on that investment."

Mr Elder said the chamber had not been consulted during negotiations because Pacific Wings had already been privy to information such as tourism numbers to and from Invercargill and the pricing of tickets.

"If negotiations had reached a stage where the chamber could have assisted, then certainly they would have been engaged."

Mayor Tim Shadbolt said he was also disappointed by the latest setback but, with 60 international and domestic flights diverting from Queenstown to Invercargill last year, its international size runway had played a good role in that regard.

The trans-Tasman route was one of the most competitive in the world, but negotiations with other airlines to provide international flights to the city were continuing, the mayor said.

Invercargill Airport chief executive Barry Bouton effectively said he wasn't bothered about the latest failure because revenue to the airport for a couple of international flights a week would be "almost non-existent" compared to domestic flights.

Pacific Wings spokesman Geoffrey Bowmaker did not return calls.

- © Fairfax NZ News