Coronavirus: Corporates and families to prop up Hamilton air travel post-Covid-19

Thursday, 30 April 2020

Waikato Regional Airport chief executive Mark Morgan hoped to see a semblance of a schedule for Hamilton air travel in May (file photo).

Waikato air travel will have to rely on visiting families and commuting businesspeople to get back a taste of normality after coronavirus.

But even then, it might take a significant period of time to fully recover, experts say.

Irene King, former chief executive of the Aviation Industry Association and now an independent aviation commentator, suggested that, in 12 months time, Air New Zealand's 'main trunk' of domestic operations would encompass Auckland, Wellington and Christchurch.

Hamilton, however, played an important part in the recovery of the economy, she said.

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And while some experts suggested demand for air travel in New Zealand could take as long as two years to return to even 60 per cent of the pre-pandemic level, others were optimistic the revival would come at a much quicker pace.

'My best guess is that the market is going to stabilise at about 70 per cent of pre-Covid. And that means, in my view, that in 12 months time, we will see 70 per cent of the old Air New Zealand operations.

'So yes, Hamilton will be back,' she said.

Waikato Regional Airport Ltd Group chief executive Mark Morgan Morgan surmised that post-Covid, aeronautical activity would be driven by business and economic confidence, as well as peoples desire to visit family and friends once alert levels allowed them to (file photo).

'Regional routes will not be forgotten, but the wealthier the region, the more likely a return.'

Once Air New Zealand gets the 'main trunk' of Auckland, Wellington, and Christchurch working well, Hamilton will be able to feed into it, King said.

If there wasn't a Wellington-Hamilton route shortly after alert level two, she would be 'really surprised'.

Hamilton City Councillor and founder of the defunct Kiwi Regional Airlines and Kiwi International Airlines, Ewan Wilson, said flights between Hamilton and Wellington, and Hamilton and Christchurch, should be relaunched in a matter of months (file photo).

Under alert level three, Air New Zealand reintroduced a service into Tauranga and Napier, travelling a number of times a week.

Waikato Regional Airport chief executive Mark Morgan hoped to see a semblance of a schedule for Hamilton in May.

'I would be hopeful that we would see some kind of reestablishment of a service out of Hamilton under alert level two - frequency and destinations unknown - but I would imagine the most likely scenario would be the reestablishment of a Hamilton-Wellington service, because I think the airline would be looking at funnelling regional traffic into their major hubs,' he said.

Hamilton and Waikato Tourism chief executive Jason Dawson said before Covid-19 hit, domestic travellers spent $1.2 billion in Waikato.

'If we move further into alert level one, I would expect to see that frequency increase again, so we certainly won't be waiting 12 months.'

Morgan surmised that post-Covid, aeronautical activity would be driven by business and economic confidence, as well as people's desire to visit family and friends once alert levels allowed them to.

'I think there will be a natural return to a reasonable level of service, but it might take a significant period of time to fully recover.'

Hamilton City Councillor and founder of the defunct Kiwi Regional Airlines and Kiwi International Airlines, Ewan Wilson, agreed that flights between Hamilton and Wellington, and Hamilton and Christchurch, should be relaunched in a matter of months.

He would be 'absolutely astonished' if Air New Zealand didn't recommence Wellington and Christchurch routes.

'Because the target market, those corporate travellers and visiting friends and relatives, will still exist.'

Wilson said although Covid-19 would generate considerable behavioural changes, domestic tourism flights would still be important post-Covid.

'Clearly we get a lot of our tourism from people who drive in and out of the Waikato, but flights do play an important role in supporting the need for those regular flights that are predominantly used by the corporates.

'Unlike a Queenstown, unlike a Taupō, who would rely heavily on inbound tourism numbers, Hamilton enjoys domestic tourism, and although the likes of Zoom would mean there will be some alteration in the amount of domestic corporate travel, there will still be the need for face to face,' he said.

'Air New Zealand will be thinking much further out than three months or six months and they won't want to leave the important domestic underbelly exposed to another operator jumping in.'

Hamilton and Waikato Tourism chief executive Jason Dawson said before Covid-19 hit, domestic travellers spent $1.2 billion in Waikato.

He agreed that the region was a key 'drive market' for the northern part of New Zealand, in which 2.5 million people live within three hours' drive of Hamilton.

The city's key fly markets were Wellington, Christchurch and Palmerston North, he said.

'Before Covid-19 lockdown came into effect, Hamilton was already a stand-out performer for Air New Zealand's regional network and serviced 370,000 passengers per year.

'The airport has also traditionally only served the business traveller market. However, the leisure market has increased to nearly 50 per cent of passenger numbers using the airport which saw more New Zealanders visiting the Waikato, as well as more Waikato residents visiting other parts of our country,' he said.

'Given the scenarios ahead to restart the visitor economy, domestic travel has been identified as an opportunity to begin the long journey ahead for economic and social recovery.'