Plans for new domestic airline announced

[raymond]

AARON LEAMAN
Last updated 19:04, December 2 2014

The founder of defunct budget airline Kiwi Air has announced plans to launch a new domestic carrier.

Ewan Wilson said the new airline would be launched in early 2016 and would look to "fill the gaps" left in the domestic market by Air New Zealand.

Last month Air New Zealand announced it would cancel a string of routes from April next year, including Taupo to Wellington, Whangarei to Wellington, and Palmerston North to Nelson.

The national carrier will also axe services to Kaitaia, Whakatane and Westport from April.
The Hamilton-to-Auckland route will be scrapped from February 2016.

Wilson, a pilot and Hamilton City councillor, said the new airline did not yet have a name and the route network was still to be determined.

However, the airline would not go head-to-head with Air New Zealand.

Wilson said there was a "significant niche opportunity" for an airline to provide a service in and out of regional New Zealand.

"Clearly Air New Zealand has chosen to pull out of certain sectors. We believe Air New Zealand couldn't make the routes work because there was a lot of overheads in their corporate model that was dumped on the Eagle Air operation and they had the wrong planes operating it," he said.

Wilson launched Kiwi International Airlines in 1994, offering a no-frills "nuts and cola" trans-Tasman service.

The budget airline captured the imagination of the travelling public but collapsed in 1996 leaving thousands of travellers grounded with worthless tickets.

The airline's failure led to Wilson being convicted of fraud.

In his assessment as to why Kiwi Airlines ultimately failed, Wilson directs much blame on Air New Zealand's predatory pricing which undercut Kiwi's fares significantly.

Wilson said the new airline would avoid direct competition with the national carrier and expected Air New Zealand to honour public statements that it would assist another operator to step into the routes it had cut.

That included sharing historical load factors and yield.

"Our feeling is Air New Zealand having now stated publicly they're pulling out of the routes, saying they're not profitable or sustainable, and encouraging other operators to develop those niches, I think Air New Zealand has paved the way for a new entrant."

Wilson said the Taupo to Wellington route was being "seriously looked at" but ruled out picking up the Hamilton to Auckland route.

Aircraft type and home base of operations had yet to be decided but Wilson said it was unlikely the carrier would be based in Hamilton.

Currently all shares of the company are held by Wilson's wife Monique Wilson, but that would change over the next 15 months.

- Waikato Times

[Dave Homewood]

I just knew this would be coming.........

[kiwithrottlejockey]

New Zealand National Airways Corporation (NAC) would be a good name.

Mind you, somebody other than that Wilson idiot running it would be a good idea.

[haughtney1]

Oh goody........maybe he will start by screening all his pilots for any "Malaysian" tendencies.......and I wonder how many little old ladies he will manage to convince to invest?

[baronbeeza]

I can't see any good for NZ aviation in this. It is a shame but I feel he should just keep well out of it and give the genuine third level operators a fair go.
It seems like a selfish publicity stunt, and yes I was left stranded in Perth by Kiwi International.

[Dave Homewood]

Dec 2, 2014 20:52:16 GMT 12 kiwithrottlejockey said:

New Zealand National Airways Corporation (NAC) would be a good name.

Why would you want to see the name of a defunct, Government-owned airline name with a proud history reprised by a dysfunctional private individual with a very dodgy history?

[kiwithrottlejockey]

Errrrrr....I did post that having somebody other than that Wilson idiot running it would be a good idea.

[Dave Homewood]

I don't think the name NAC should ever return unless it is an Air New Zealand brand again. They after all own the brand and are our national carrier. frankly I far prefer the black with silver fern and koru look to the ancient red and orange with the weird bird on the tail.

[Peter Lewis]

Dec 3, 2014 15:41:12 GMT 12 Dave Homewood said:

I don't think the name NAC should ever return

Sue Naylor had an aircraft maintenance company based at North Shore airfield some years ago - Naylor Aircraft Company.

Used to boast she was running NAC.

[TS]

[frankly I far prefer the black with silver fern and koru look to the ancient red and orange with the weird bird on the tail.[/quote]

To be honest any private airline that starts up in competition with Air NZ. Should have on the tail a "hand clenched fist with the index finger UP "

So that every time they land at an airport and ANZ are there they can give them the finger, just to remind them that private enterprise works and that they are there to annoy them.....

[Dave Homewood]

Except most of the private enterprises haven't worked against them, and they end up either failing or becoming part of Air NZ. You really cannot take on something that works so well and expect to win. Even the big boys like Qantas and Jetstar have found that.

[baronbeeza]

They have a terrible history of taking competitors out, filthy tactics really. I have seen and experienced it too many times. I doubt they will ever be able to change that culture.

I will never forget the day in (Aug ?)1987 when Pacifica were doing their first Metro flight from Nelson to ChCh. An 8am departure on a Monday morning and there just happened to be a Mt Cook 748 sitting there at Nelson. Sure enough they did exactly the same route until they drove Pacifica out of business.
It was coincidentally about the same time as Ansett were getting serious, they had just taken over Newmans and were starting jet services. At least they gave Air NZ a much needed wake up call.

We can just see history repeating here, as soon as one of the 3rd level operators thrives then Air NZ will push them out of the route again.

The Wilson character knows that so you have to ask why he is bothering even mentioning it. In the meantime he is going to upset the new guys like Soundsair that are trying to do the right thing.

[nuuumannn]

I think a smaller airline could work if it goes about it in a manner by which it isn't in direct competition with Air NZ, that is, in terms of the size of aircraft operated as well as routes flown. Look at Sounds Air and Air to There? Both still going and providing cross Strait services from Nelson/Blenheim in direct competition with Air Nelson and Eagle Air. The Cessna Caravan is an ideal aircraft for this kind of operation; single pilot IFR and no hosties reduces staff aboard the aircraft, keeping costs down per flight. Offer routes to the public around locations Air NZ can't service because of the low population, like say, Westport, although making an air service work efficiently servicing a town of 4,000 people without subsidising it with further routes elsewhere is pretty impossible.

Wilson has to start from scratch, and whose going to finance him to raise enough capital to create from nothing a fleet of aircraft, a maintenance base, adequate staff and facilities at regional airports etc, etc...

[kiwithrottlejockey]

Bring back Air Central.

They provided a bloody good service before they got swallowed up in mergers and eventually eaten by Air New Zealand, who promptly ditched most of their very handy routes.

[madmax]

In the mid nineties I worked for Kiwi Airlines. One thing I learned about Mr Wilson was that he never let the truth get in the way of a good story. New Zealand aviation would be a better without him

[Deleted]

I just hope they use any aircraft other than the A320, something a bit different would be nice.

Hopefully Mr Wilson make a better job of this try, against the like of Air New Zealand it will be tough.

NAC died a respectful death in 1978, so let just leave it at that.

My Grandfather worked for NAC from the start to end.

[madmax]

Aviation needs entrepreneurs such as Ewan Wilson however it does not need promoters with inflated egos and minimal knowledge of the industry.

[Dave Homewood]

So what you're saying is aviation needs entrepreneurs unlike Ewan Wilson?

[alexjc]

Ewan Wilson has been asked to attend more HCC meetings or resign. Wilson and a couple of other councillors that have terrible attendance records have been put on notice by Hamilton's Deputy Mayor, Gordon Chesterman.
Chesterman did mention Wilson's setting up of his new airline venture has probably been his major distraction. However city councillors have a responsibility to ratepayers to attend meetings.
This has come on the back of complaints of Wilson failing to keep appointments with constituents.

Apparently two Saab airliners have been obtained for service but the Facebook and website pages still have minimal information and no actual contact details. The proposed routes are still as they were when Wilson announced the new airline.

[Dave Homewood]

Wilson says Kiwi Regional Air won't compete with Jetstar or Air NZ
RACHEL THOMAS
Last updated 21:04, June 23 2015


Ewan Wilson, chief executive of Kiwi Regional Airlines, said he doesn't intend to operate any of the same routes Jetstar has proposed.

A Hamilton businessman waiting to launch his new regional airline is unfazed by Jetstar's announcement to introduce new domestic routes, saying he doesn't intend to compete with the airline giant's flight paths.

Hamilton city councillor and Kiwi Regional Airlines (KRA) chief executive Ewan Wilson announced the planned carrier at the end of last year - but has not finalised where he'll fly.

A draft route plan indicated direct flights between Auckland, Hamilton, Nelson and a connection to Queenstown.

Now as Jetstar mulls over possible new routes to Hamilton and Rotorua, Wilson is adamant it won't affect his plans to fly.

"We don't believe the routes we intend to operate will be operated by Jetstar or Air New Zealand. And our network, we believe, will complement either Jetstar or Air NZ.

He said the lessons he learnt through the failure of his former company, Kiwi International Airlines, which collapsed in 1996, taught him not to go up against industry titans.

"I tried that 20 years ago and I took a real beating."

When Kiwi International failed, thousands of travellers were grounded with worthless tickets.

"If I'm being real honest, we would be a little intimidated going up against a Jetstar or an Air New Zealand.

"What [Jetstar's announcement] does do is refocuses the mind of senior management at Kiwi to remind us to pioneer routes that does not lead us to compete."

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Wilson said an announcement planned for later in the week should confirm which regional routes KRA will fly and shed light on the planned purchase of two Saab aircraft.

"That will give you a defined date of when the first airplane will arrive in New Zealand. When we first start moving passengers will be subject to regulatory approval, but it should be before the end of this year."

Meanwhile Hamilton and Rotorua are preparing to face-off to win the airline's attention - and secure their spot as one of the four final routes.

Hamilton and Rotorua are among seven shortlisted New Zealand locations to be added to Jetstar's regional routes.

Jetstar's move was an absolute shift in competitive dynamics and both regions had their advantages, said former chief executive of Aviation New Zealand, Irene King.

"Rotorua's more about inbound tourism and tourism feed. So if they get a good inbound tourism operation, say scouted from the United States with American airlines linking up to Jetstar, then Rotorua's definitely a start-up option.

"There's a tremendous hankering of wealth in the Waikato itself and there's a lot of regular business travel Waikato-Wellington with the government connections."

The four new destinations will have flights operating from December, while routes will be finalised in September.

- Stuff

www.stuff.co.nz/business/industries/69620800/wilson-says-kiwi-regional-air-wont-compete-with-jetstar-or-air-nz