Air Chathams says it is suspending all air services for the Kāpiti Coast effective from 31 July this year.
Kāpiti Coast Mayor Janet Holborow says it’s a major loss for the district.
“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.
She says Air Chathams has served our community well, stepping in when the national carrier withdrew. “Despite strong support from the community and Council, the economic reality is challenging and businesses are having to make tough decisions to remain viable.”
A week before the announcement of cutting the Kāpiti service Air Chathams had missed the due date to repay a $500,000 Kāpiti Coast District Council loan.
Air Chathams chief executive, Duane Emeny, says 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 direct Paraparaumu to Auckland service if the council chose to declare the loan in default.
Emeny said “that’s your decision as a council to make and, if that’s the case, then we’ll work through it. But what I would say is there’s a significant risk to the air service continuing if they choose that path.”
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.
Presumably the lesson here for Councils is don’t make interest free loans. Other assistance the Air Chathams received from North Island councils included a $350,000 loan from Whakatāne District Council, a $30,000 marketing budget and a $500,000 loan from Whanganui District Council.
Mayor Holborow says Council remains in active discussions with Air Chathams about repayment of the loan and is hopeful conditions improve enough for services to return in future.
Local MP Tim Costley says he is gutted to hear Air Chathams are suspending their Kāpiti to Auckland service, but insists it is as important as ever to keep Kāpiti Airport operational.
“Locals and visitors tell me how much they appreciated Air Chathams service. I’ve been working behind the scenes for months to try and make that (and Sounds Air) more sustainable, working with officials, the Minister, airlines and others.
Costley says “My top reason for Kāpiti Airport has consistently been for resilience. Last week we had three air ambulances operating from Kāpiti because Wellington was shut. And when the big one hits Wellington, Kāpiti Airport will prove itself as a major hub of operations supporting not just Kāpiti but the wider Wellington region.”