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Title : Air Chathams' Cautious Expansion Plans
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Air Chathams' Cautious Expansion Plans

Regional New Zealand could be in for relief, as Air Chathams investigates further expanding its network. The privately-owned airline has 15 aircraft, and has progressively taken over axed Air New Zealand routes. That includes Auckland to Whanganui, Whakatāne and Kāpiti Coast. The flights are on top of its longstanding services to the Chatham Islands from Auckland, Wellington and Christchurch. Hamilton to Nelson was one of the new routes of interest, alongside a Masterton to Auckland service. Air Chathams CEO Craig Emeny said the airline wouldn't consider picking up the regional routes Jetstar will leave later this year because Air New Zealand was too tough a competitor. However, Emeny said the airline was in the very early stages of considering new regional flying. Emeny added it was early days, and any possible routes wouldn't launch until 2020. The Masterton to Auckland leg was last serviced by Air New Zealand Link, using a Beech 1900D, but it was axed in 2014 after the national carrier decommissioned its smaller Beech fleet. Kiwi Regional Airlines briefly flew between Hamilton and Nelson, before folding after less than a year. Its sole Saab 340 was sold to Air Chathams.  Emeny said the potential new routes would likely be served by one of its three Saab aircraft, which has 36 seats. There has long been chatter Virgin Australia or even its budget offshoot Tigerair could enter the New Zealand domestic market. Virgin, in particular, already operates ATR turbo-prop aircraft, the same type used by Air New Zealand. But times are tough for Virgin. The Australian carrier is planning to cut 750 jobs and reduce costs by $75 million a year. Virgin also owns Tigerair, which is currently running at a loss too. In that climate, it's highly unlikely Virgin or Tiger would look to start domestic operations in New Zealand - as it would require a significant upfront investment and the likelihood of intense competition from Air New Zealand. 

Source : https://www.stuff.co.nz/travel/news/116116585/could-another-airline-save-the-regions

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