Air Chathams Cuts Kāpiti Coast Flights to Auckland

Air Chathams is suspending the only direct flight from Auckland to the Kāpiti Coast, north of Wellington, from 31 July.

The airline, which took over the route when Air New Zealand pulled out in 2018, made the announcement on Friday.

Its chief executive, Duane Emeny, said it was a "personal disappointment" for him and the airline, but it was the only responsible path the airline could take without affecting its other routes, including "lifeline" flights to the Chatham Islands.

The combination of rising costs for fuel, maintenance, labour, airport charges, air traffic control fees and compliance meant the airline lost money every time it flew to Kāpiti.

"The last five years have seen operating costs in every part of the business rise dramatically," Emeny said. "I've spoken to some of our regular passengers over the last couple of days and I'm gutted for them."

Kāpiti Coast mayor Janet Holborow called Air Chathams' exit a major loss for the district. It leaves Sounds Air the remaining airline with scheduled flights from Kāpiti to Blenheim and Nelson.

"We understand this is a commercial decision made in tough conditions, but it will be deeply felt by the people who rely on this service to travel for work, connect with friends and whānau, and support our local visitor economy," Holborow said.

"Air Chathams has served our community well, stepping in when the national carrier withdrew."

Local Democracy Reporting reported in late May that Air Chathams missed the due date to repay a $500,000 council loan. Councillors agreed to lend the money during the Covid-19 pandemic, in November 2020, to help the airline restart flight operations.

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Emeny said in late May the loan would be repaid and asked for a 10-business day extension to work out a payment plan, but warned there was "a significant risk" to the flight if the council chose to declare the loan in default.

In April, the government loaned Air Chathams $17.2 million through the Regional Infrastructure Fund to refinance debts. Emeny said that was to service interest-bearing debt, which meant the councils' interest-free loans did not qualify.

"We'd love to come back to Kāpiti, and when conditions are right, we're happy to look at it again," he said on Friday.

Holborow said the council remained in active discussions with Air Chathams about repaying the loan and was hopeful conditions would improve enough for services to return in future.

The loss of Auckland flights raised questions about the future of the privately owned airport. The airport's property developer owners had wanted to close it to build houses but some local organisations, including the Kāpiti Coast District Council and hapū Puketapu ki Paraparaumu, wanted the airport to stay open.

Local MP Tim Costley said he was "gutted" to hear Air Chathams was suspending flights to Auckland: "I will continue to turn over any stone that could help commercial air services to Kāpiti, but above all else, I will always fight to keep Kāpiti Airport operational."

The Saab 340 aircraft on this route will be redeployed to Air Chathams' other routes, including those from Auckland to Whanganui and Whakatāne.

- Local Democracy Reporting is local body journalism co-funded by RNZ and NZ On Air.

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