a7ala wrote:NCL and CBR to SYD are both between 2-3 hours drive and nether have an established inbound visitor market like CHC (south island leisure) or to a lesser extent WLG. They arent really comparable.
Also the competitive situation is completely different to what is happening in the Northern Hemisphere. Airlines are being innovative up there as they know there is an opportunity to one-up their competitors, there are ample aircraft and crew available, and airports that are fairly slot constrained normally now arent. In the NZ/OZ context, you now have two airlines only (QF/JQ and NZ) with no VA likely in the short-term and they have shown to be very risk adverse so no new routes including the return of DUD-BNE. The pressure of the 5th freedoms wont be happening for some time with the inability to mix red and green passengers on the same flight. And neither QF or NZ will be wanting to start a capacity war on the Tasman with new marginal routes - unfortunately its the duopoly we have for the near future.
And with airlines looking to be as profitable as possible (and without competitive tension) they would much prefer to funnel passenger through their hubs than to provide non-stops. Whats happened to Air NZ's plans to start CHC/WLG-RAR now that the competitive pressure of Mike Pero has now gone? Competition drives many of the decisions made in the aviation world, and in this part of the world there just isnt much of it.
Actually, I think QF has already signalled its intentions to up its game on the Tasman. The launch of daily AKL-OOL and seasonal three-weekly AKL-CNS for a start. And then, there’s the wider use of A330s on routes like AKL-BNE. The Tasman has traditionally been “owned” by NZ (just) but it’s leadership will come under threat IMO with QF’s current approach.
There’s another factor that also enters into the equation, to: the resumption of transpacific routes - which may be less than 6-9 months away on present indications, though 12 months is predicted for Australia and we may follow suit. A significant number of pax use AKL as a transit point from Australia to North America, and this market will be critical when the resumption comes. QF/AA have already shown quite aggressive intentions with AA’s recent announcement, and while we could quibble about the realism of the start date, their intentions are well-signalled. Feed for NZ’s transpacific operation from Australia will be vital to NZ’s success.
And then there’s the acknowledged global trend toward point-to-point services over hubbed. Routes like AKL-CBR and AKL-NTL both improve point-to-point offerings for Transtasman travellers, and feed the Pacific network through the AKL hub. Already, VA (summer 2019) have done quite well on NTL, without the advantage of on-carrier feed at either end. Their loads more than justified the 3x weekly offering for what was a rather oddball route in the context of the VA network. I could imagine NZ having a similar level of service on AKL-NTL, feeding domestic and Pacific connections, to that proposed for HBA initially. The levels achieved by SQ on WLG-CBR would have justified 2x weekly A320 services, and I could imagine NZ offering 3x weekly AKL-CBR, feeding into the transpacific network would be quite sustainable.
Of course, no one wants to undermine existing routes. But in a market that has in the past grown strongly, and where your chief competitor is starting to flex its muscles, NZ needs to find a competitive response. Frequency and network diversity are obvious options, but at AKL, where the main Tasman routes have supported 3-6 flights a day in the past, the value of frequency becomes less and less. Diversity (and feeding the Pacific network) is an obvious option.
And if that isn’t to be NZ’s competitive response, what then?