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Post by Peter Lewis on May 3, 2007 15:49:25 GMT 12
New airline eyeing up NZFlat domestic fares of $150 promised by investors looking to set up budget airline Kiwijet 3 May 2007 American and Japanese investors are looking at launching a new domestic airline in New Zealand. Kiwijet is the brainchild of US aviation specialist Patrick Weil. He says the country is ready for a simplified, cost-effective form of domestic air travel. The fledgling airline would initially fly two Boeing 737s between Auckland, Christchurch, Dunedin and Invercargill. All fares would cost a flat $150. Mr Weil says Kiwijet is considering bidding for acquisition of an existing domestic airline and hopes to be operating by the end of the year. home.nzcity.co.nz/news/default.aspx?id=72713Where have we heard of this sort of idea before?
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Post by corsair67 on May 3, 2007 16:02:29 GMT 12
Another flash in the pan?
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Post by flyjoe180 on May 3, 2007 17:16:27 GMT 12
What airlines are there to bid for? And is that $150 from Auckland to Christchurch, another $150 to Dunedin, etc? And no Wellington service either.
I would say so, but we shall wait and see.
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Post by flyjoe180 on May 3, 2007 17:36:30 GMT 12
Seems I have answered the first question, it appears the company being sought after is non other than Jetconnect (QANTAS NZ). www.stuff.co.nz/stuff/4046110a34.htmlNew Zealand aviation insiders have cast serious doubt on the plan, however.
Patrick Weil said yesterday that Kiwijet would initially fly two Boeing 737-300 aircraft between Auckland, Christchurch, Dunedin and Invercargill.
A fare between Auckland and Christchurch would be a flat $150, regardless of when it was bought.
Kiwijet would use the same model as the original budget airline, Southwest Airlines in the United States, something Air New Zealand would not be able to counter, Mr Weil said.
He said he had US$20 million in financial backing from three unidentified private equity investors who wanted to buy Qantas' domestic operation, Jetconnect.
A decision to approach Qantas with the proposal would depend on whether private equity consortium Airline Partners Australia was successful in taking over the Australian national carrier.
"There are a lot of ifs, there is no doubt about it," Mr Weil said.
"But our investors are very keen on what is going on in New Zealand at the moment."
A New Zealand aviation insider said, however, that Mr Weil was a specialist in improving ground-handling services for aircraft, but he did not have experience running an airline.
Mr Weil claims to have been one of the original consultants for high-profile easyJet before that budget airline entered service in Europe in 1995.
He said he became interested in the New Zealand market after becoming involved in a potential rescue of Nelson regional airline Origin Pacific, which closed in August last year. |
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Post by Bruce on May 3, 2007 18:32:10 GMT 12
A Budget airline....what a novel idea! I cant see how you can operate a 737 at $150.00 per seat for those routes without cutting corners somewhere. seems appropriate that the name is a combination of Kiwi International and CityJet! Welcome to the world of budget airlines where to make a small fortune you start with a big one.....
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Post by flyjoe180 on May 4, 2007 10:03:05 GMT 12
It didn't take long for Air NZ to respond with announcement of it's own low cost carrier: tvnz.co.nz/view/page/410965/1096686 . Competition sure keeps Air NZ honest for a while, and that is good for all travellers in NZ.  May 4, 2007
Air New Zealand may start its own budget airline to operate on domestic routes.
The revelation comes in a memo from top management at New Zealand's national carrier. It was in response to proposals by a US businessman to set up a budget airline here, possibly as early as December.
Newly announced airline Kiwijet proposes to offer a flat rate fare which can be bought from petrol stations.
Air New Zealand says its own strategic review includes whether to have a low-cost carrier operating domestically.
The memo also expresses concern that many of the ideas put forward by its potential competitor are surprisingly similar to proposals contained in Air New Zealand's own review. The airline urges staff to make sure confidential information remains secure.
An aviation expert doubts a third airline will ever make it in New Zealand.
Aviation commentator Peter Clark says Air New Zealand has nothing to fear as it has a good grasp on the local market. He suggests the national carrier should still continue ahead with its plans. |
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Post by flyjoe180 on May 4, 2007 10:24:07 GMT 12
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Post by stu on May 4, 2007 11:00:53 GMT 12
What fog? 'twas but a mere mist. I could see the sun rise this morning and here's a photo I took to prove it  Could almost see the neighbours house as well. |
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Post by Dave Homewood on May 4, 2007 17:32:49 GMT 12
I'm not sure that $20 million is enough to start an airline with in a market like ours. Shall we have a sweepstake on how many weeks its lasts.
Bruce, I had observed the name links too and thought the same thing. Still, if we get Freedom National or whatever out of it, its áll good.
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Post by Damon on May 4, 2007 21:05:05 GMT 12
Judging by the news reports tonight ,there maybe more than one airline potentially going to start flying here.It may reduce our airfairs but increase our carbon emissions .We'll end up paying for it in the end!
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Post by Dave Homewood on May 4, 2007 21:41:25 GMT 12
Easy, they could put beef meals back on the planes and kill a few cows. Emmissions solved!
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Post by beagle on Jun 25, 2007 21:56:39 GMT 12
Just ben reading about this Kiwijet saga.
Their original plan was to buy Jet Comnnect from Qantas, but now are going to be starting up next year with no less than 12 EMB-145's
but no Dunedin on the plan as yet., nor Cambridge
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Post by Dave Homewood on Jun 25, 2007 22:18:31 GMT 12
So this is still happening then? I was wondering the other day what became of it all.
The Cambridge airport is Rukuhia. They're not going to service that airport?
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Post by beagle on Jun 25, 2007 22:21:40 GMT 12
I reckon the emb-145's will look sweet, but new planes, operating costs against turbo props must be a disadvantage.
They should be looking at teaming up with Virgin Blue
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Post by Bruce on Jun 25, 2007 22:33:22 GMT 12
Embraer make nice aircraft too, and have excellent support infrastructure worldwide. They have been wanting to get a key sale in Australasia for thier regional jets for some time. CityJet had 145s in its medium term strategy (by way of the 120 Brasilia) They are ideal for the shorter hops and lower density NZ routes. Cant help but think that although the regional jet market is targeted at the likes of KiwiJet, its a pig of a market to sell to - half your clients go broke before they pay the aircraft off!
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Post by flyjoe180 on Jun 26, 2007 17:16:24 GMT 12
It is a difficult market to crack into, but time will tell I suppose. The Embraers are very nice looking machines and are operated successfully and economically around Europe. I believe they were designed as pure regional jets to replace the likes of larger turbo props.
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