While the reasons behind Air New Zealand’s recent cut in flights are understandable, one aviation expert is questioning whether the airline has handled the situation as well as it could have, and is concerned over which routes were cut.
NZ Airports Association ceo Billie Moore says she can’t criticise the decision to cut flights, given jet fuel has doubled and it is an airline’s largest cost, but she tells Travel Today it is important to understand that the biggest fuel cost exposure is on long-haul flights rather than regional ones.
One Auckland to New York return flight uses around the same amount of fuel as 170 return flights between Auckland and New Plymouth, says Moore.
And it’s not just about the amount of fuel being saved, Moore says there is a significant impact on the domestic network and, in turn, airports from ongoing cuts, as she notes capacity from NZ has already been reducing over the years in many locations.
“Airport charges for the maintenance of runways and terminals are determined based on forecast passengers, so if airlines reduce their capacity, then costs have to be spread across a smaller number of passengers,” she says.
. . . No Attack
This isn’t an attack on the carrier. Moore says she appreciates that NZ has taken care with its schedule reductions, including protecting some of the smaller parts of its network.
“They’ve also reiterated that the changes are temporary,” she adds. “So the goal needs to be to get capacity growing again as soon as possible.”
Competition affects where airlines reduce their flying, Moore saying this is a natural thing and no criticism of airlines, but she does worry that some closer monitoring or support may be needed from the government to maintain connectivity.
All of this isn’t to say long haul flight cuts are off the table.
“Of course if the situation gets worse we would expect to see a greater emphasis on refining long haul networks,” says Moore. “We continue to hope that the situation does not escalate further.”
