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You could call it NAC
Air New Zealand is considering merging its two regional subsidiaries with its main jet business to save costs. But one travel agent thinks it could be part of a plan to introduce jet services to some regions. In a written statement Air New Zealand said it was exploring whether there were efficiencies that could be gained by integrating its turbo prop operators Air Nelson and Mount Cook with its jet operation. "To be clear there is no plan to close these regional turbo prop airlines, or to stop flying to any of our current regional destinations, or to stop operating the Q300 and ATR turboprop fleets. We remain committed to growing our turbo prop regional services." Air Nelson, incorporated in 1979, and Mount Cook Airlines, incorporated in 1970, are 100 per cent owned by Air New Zealand. Air New Zealand is 52 per cent owned by the New Zealand Government with the remaining shares listed on the New Zealand stock market. An Air New Zealand's ATR aircraft currently fall under the Mt Cook Airlines operation. The Mount Cook fleet consists of six 68-seat ATR72-500 and 21 ATR72-600 with eight more on order. The ATR72-500 have an average age of 17 years while the ATR72-600 have an average age of three years. House of Travel commercial director Brent Thomas said by merging the companies Air New Zealand would be able to save costs. Earlier this week the national carrier announced a range of cost cutting measures, including deferring aircraft orders, following a company wide review. The review came after the airline downgraded its profit guidance for the 2019 financial year, with profit before tax forecast to be between $340m and $400m for the year to June 30. Thomas said it was possible Air New Zealand was also looking at introducing a jet services to regional New Zealand. "The immediate thought that comes to mind is are they in discussions with any regional airports that could open them up to a jet service." A jet service between Auckland and Nelson was the most obvious choice, he said. "Nelson is incredibly busy from a regional point of view." Nelson had high levels of business passengers on early morning and late afternoon flights and was also extremely popular with inbound tourists flying into Auckland, he said. "It would certainly be popular. "Getting into Nelson sometimes can be quite hard. The services are quite full particularly during the inbound tourism season." Having a jet service the route would result in fewer weather-related delays, something commonly experienced in Nelson, he said. Queenstown was a good example of a region that had successfully converted from turbo prop services to jet services, he said. Savage, spokesman for the aviation workers union E tū, said it had cabin crew collective agreements with Air Nelson and Mount Cook. Air Nelson crew reached new collective agreements at the end of 2018 and Mount Cook cabin crew were currently in bargaining. Historically Air New Zealand regional crew did not work across both the company's airlines, he said. "If Air New Zealand decide to merge or restructure their regional airlines we will of course talk to them about doing that in a way that improves both conditions for cabin crew and the schedules available to the travelling public."
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