Hamilton airport's trans-Tasman service ends

ANDREA FOX
Last updated 14:06 14/08/2012
NEW SIGN NEEDED: Hamilton Airport is set to lose its international status as the trans-Tasman air service ends on October 27.
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NEW SIGN NEEDED: Hamilton Airport is set to lose its international status as the trans-Tasman air service ends on October 27.

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Hamilton Airport is losing its trans-Tasman air services.

Hamilton airport chief executive Chris Doak said the airport company had been advised by Virgin Australia that the airline would cease operating its Brisbane-Hamilton route from the end of October due to a lack of demand.

Virgin Australia, previously Pacific Blue, started flying three times a week between Hamilton and Australia three years ago.

Virgin Australia said despite a good relationship with Hamilton airport since September 2009 demand for the service had deteriorated and the service was now financially unsustainable for the company.

The last flight will be on October 27.


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Doak said the announcement was disappointing however the airport was in a much better financial position now than when Air NZ announced earlier in 2009 that it was ceasing its trans-Tasman service with Hamilton.

Airport chairman John Birch said the airport was in a viable financial position and would continue to run profitably because it was now a diversified operation.

"We've spent the last few years restructuring and paying back debt. Additionally we are now seeing increased diversification of revenue from selling and leasing land, managed through the airport's property joint venture Titanium Park.

"The airport is a multi-faceted business which helps protect us from exactly this scenario."

Birch said the airport company expected to remain profitable despite the Virgin Australia decision.

The airport is owned by five Waikato local authorities.

 


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- Waikato Times

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