Council discontinues funding for Sydney-Rotorua service

Rotorua Regional Airport Ltd and the Rotorua District Council, in conjunction with Air NZ, have announced the suspension of the Sydney-Rotorua flights from the end of April 2015.

The council has contributed to Trans Tasman operations since 2009, but based on the returns, believes the budget is best invested elsewhere – a decision that is supported by the airport company and Air NZ. Ratepayers’ net contribution to the Sydney-Rotorua service in the last financial year was $1m.

The cessation of flights is in line with the airport’s business strategy to improve the commercial performance of the operation.

Rotorua Mayor Steve Chadwick said the decision by Council to stop funding the Trans Tasman flights was the prudent thing to do.

“This Council is committed to prudent financial management and our decision to stop funding the flights is part of the process we have been going through to ensure greater financial clarity, transparency and efficiency.

“The anticipated boost from Trans Trasman flights hasn’t happened and Council considers the funding that has been going to that service can be better used in other areas,” she says.

Rotorua Airport chief executive, Alastair Rhodes, says the decision around the Trans Tasman flights is supported by the Airport board and the airport will focus on future opportunities, including commercial land development, strategic relationships with other airports and North to South Island tourism flows, including a potential direct flight to Queenstown.

Mr Rhodes says the aviation market has changed significantly since the Trans Tasman flights were launched in 2009, resulting in airlines moving such flights away from regional hubs to major ports.

“Due to these changes, the Airport and the Council firmly believe that the Airport’s commercial network efforts are best focused on where we have our competitive advantage – looking to grow our North to South Island tourism links, providing better domestic access for locals and greater support for the local tourism sector.”

Mr Rhodes says the Airport remains focused on ensuring efficient and effective air connectivity to support the region’s growth development, and hopes to start discussions in the next month on a regional integrated air strategy in order to achieve this.

“We agree with the tourism sector and regional industries that air connectivity is a key element in the future development of our region, but it needs to be sustainable for everyone involved.”

[ENDS]

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