Originair ending Westport flights without further support

By Andrew Curran.

The CEO of New Zealand’s Originair says he’s not going to imperil the airline by continuing to operate an unprofitable route between Westport/Carters Beach (WSZ) and Wellington (WLG) without some form of financial support.

Originair’s twice-weekly round trips between New Zealand’s capital and Westport, on the west coast of the South Island, will end this week after a short-term support package kept the flights operating over the winter season.

Originair has operated the route for the past 20 months, picking it up after Picton Airport (PCN)-based Sounds Air abruptly dropped it in late 2024.

But in March, Originair also said it was losing NZD250,000 (USD149,100) annually on the route and would soon cease flying it. However, Development West Coast, the regional economic development agency for New Zealand’s West Coast region, stepped in with a three-month rescue package.

“It has certainly been very helpful and allowed the service to continue through the difficult winter months,” Originair CEO Robert Inglis told RNZ’s Morning Report. “The area, with its tourism, is quite seasonal, and there’s very strong traffic during the summer months but weakens in the winter period, especially with the economic troubles that everybody’s got.”

Inglis says Originair’s Wellington – Westport flights have had average passenger loads of between 60% and 70%, but that the yield hasn’t been high enough to cover increased operating costs.

“The fuel price crisis has really made it more challenging, and we’re not in a position to jeopardise the rest of our network by continuing it (the Westport flights) unless we get some support from the beneficiaries, which is really the government or the local area,” he said.

“We need about 70% load factor and a net fare of around NZD350 to be able to operate the flight,” Inglis added. “What Development West Coast has done for us is topped up (our shortfall) for the last three months to allow the flights to continue, and we’re capable of continuing the service, but we do need some support to keep doing that.”

Economic downturn also a contributing factor

Originair flies a trio of BAe Jetstream 32s between six airports on either side of New Zealand’s Cook Strait, including Wellington, Westport/Carters Beach, Blenheim (BHE), Nelson (NSN), Palmerston North (PMR) and Christchurch (CHC).

Saying New Zealand was in the economic doldrums, Inglis said it was up to the government to ensure the Westport flights continued. Without further support, he said there was no chance of the Westport flights continuing on a stand-alone basis.

The New Zealand Government set aside NZD30 million earlier this year to support the country’s regional aviation sector, offering loans at concessionary rates, with funding coming from the Regional Infrastructure Fund.

So far, around 80% of that funding has been taken up, with the majority going to Air Chathams.

Westport route will only continue if government steps in

But with the assistance arriving in the form of loans, and Inglis says Originair doesn’t see the point in borrowing money to support a loss-making service.

Instead, Inglis says the airline has asked the government to change the criteria to allow some annual support, such as grants, until New Zealand’s economic conditions improve. A meeting is scheduled next week to discuss the matter.

He says the West Coast region is one of the country’s growth areas and a rich source of tax revenue for the New Zealand Government.

“Government benefits from the service (to Westport) and I don’t really see how the area can grow without this service,” Inglis said.

Photo: Aero South Pacific.
Contact the writer: andrew@aerosouthpacific.com