Post by vgp on Dec 3, 2007 11:22:09 GMT 12
Air NZ may fly jets in regions
By ROELAND VAN DEN BERGH - The Dominion Post | Monday, 03 December 2007
Jets could soon start flying into regional towns as part of a planned US$300 million (NZ$390 million) domestic fleet upgrade and opening of new routes by Air New Zealand.
Bruce Parton, Air New Zealand group general manager of short haul airlines, told BusinessDay that an order for about 15 aircraft would gradually replace the fleet of 11 ATR72-500 regional turboprops.
Among the three options being considered was the 104-seater Embraer E-190 jet which can land at almost any airport in the country.
The airline wanted to significantly increase regional services that offer substantial tourism growth, Mr Parton said.
Though they were faster and more comfortable, jets were more expensive and would come with higher fares than the two turboprop options being considered.
French manufacturer ATR is touting the 68-seat ATR72-600, which is the next generation of the current 500 model, as the most fuel efficient and the more environmentally friendly.
Canada's Bombardier has the 90-seat Q400X, a larger version of the Q300, which Air New Zealand introduced two years ago.
Mr Parton said most passengers preferred to fly on a jet rather than a noisier propeller aircraft. The question was whether passengers were prepared to pay a 10 per cent premium for a jet service, or if they preferred a similar fare reduction possible with the Q400X or ATR.
"This will come down to what the customer choice is," Mr Parton said.
House of Travel retail director Brent Thomas said price-conscious leisure passengers, who made up the bulk of regional markets, would opt for lower fares.
The bigger planes, however, would be welcomed by business travellers who were finding it difficult to get a seat to smaller centres at short notice, Mr Thomas said.
A more expensive jet service could also leave Air New Zealand vulnerable to a competitor who could come in with a cheaper turboprop option, he said.
Mr Parton said Air New Zealand was keeping a close eye on customer reaction in regional Australia where Virgin Blue has introduced the smaller Embraer E-170 jet to compete against Qantas, which uses Q300s.
If, despite higher fares, there was a clear preference for the jet, that could swing the decision in favour of the E-190.
But the Q400X appears most likely to get the nod when a final decision is made around March.
It meets Air New Zealand's requirement for a fast, cheap-to-run, 90-seat-plus aircraft that will significantly increase capacity.
The airline also has purchase options on the earlier Q400 model which can be converted for the Q400X, negotiated at the time of buying the Q300s.
The E-190 would also be subject to the more time-consuming pre-boarding security checks required for jets, which went against a drive to reduce the time people spent at the airport.
Mr Parton said both the E-190 and the Q400X would allow new non-stop long-distance services, such as Auckland to Invercargill, which could not sustain a 136-seat Boeing 737 service.
Air New Zealand has had a monopoly on the 26-destination regional network since the demise of Origin Pacific last year.
Pacific Blue, which began flying on the main trunk route last month, has indicated it could add some provincial destinations in two years, using its E-170 or E-190s.
By ROELAND VAN DEN BERGH - The Dominion Post | Monday, 03 December 2007
Jets could soon start flying into regional towns as part of a planned US$300 million (NZ$390 million) domestic fleet upgrade and opening of new routes by Air New Zealand.
Bruce Parton, Air New Zealand group general manager of short haul airlines, told BusinessDay that an order for about 15 aircraft would gradually replace the fleet of 11 ATR72-500 regional turboprops.
Among the three options being considered was the 104-seater Embraer E-190 jet which can land at almost any airport in the country.
The airline wanted to significantly increase regional services that offer substantial tourism growth, Mr Parton said.
Though they were faster and more comfortable, jets were more expensive and would come with higher fares than the two turboprop options being considered.
French manufacturer ATR is touting the 68-seat ATR72-600, which is the next generation of the current 500 model, as the most fuel efficient and the more environmentally friendly.
Canada's Bombardier has the 90-seat Q400X, a larger version of the Q300, which Air New Zealand introduced two years ago.
Mr Parton said most passengers preferred to fly on a jet rather than a noisier propeller aircraft. The question was whether passengers were prepared to pay a 10 per cent premium for a jet service, or if they preferred a similar fare reduction possible with the Q400X or ATR.
"This will come down to what the customer choice is," Mr Parton said.
House of Travel retail director Brent Thomas said price-conscious leisure passengers, who made up the bulk of regional markets, would opt for lower fares.
The bigger planes, however, would be welcomed by business travellers who were finding it difficult to get a seat to smaller centres at short notice, Mr Thomas said.
A more expensive jet service could also leave Air New Zealand vulnerable to a competitor who could come in with a cheaper turboprop option, he said.
Mr Parton said Air New Zealand was keeping a close eye on customer reaction in regional Australia where Virgin Blue has introduced the smaller Embraer E-170 jet to compete against Qantas, which uses Q300s.
If, despite higher fares, there was a clear preference for the jet, that could swing the decision in favour of the E-190.
But the Q400X appears most likely to get the nod when a final decision is made around March.
It meets Air New Zealand's requirement for a fast, cheap-to-run, 90-seat-plus aircraft that will significantly increase capacity.
The airline also has purchase options on the earlier Q400 model which can be converted for the Q400X, negotiated at the time of buying the Q300s.
The E-190 would also be subject to the more time-consuming pre-boarding security checks required for jets, which went against a drive to reduce the time people spent at the airport.
Mr Parton said both the E-190 and the Q400X would allow new non-stop long-distance services, such as Auckland to Invercargill, which could not sustain a 136-seat Boeing 737 service.
Air New Zealand has had a monopoly on the 26-destination regional network since the demise of Origin Pacific last year.
Pacific Blue, which began flying on the main trunk route last month, has indicated it could add some provincial destinations in two years, using its E-170 or E-190s.
