ZK-NBT wrote:NZ516 wrote:a7ala wrote:
Again its not just a CHC thing - AKL paid out $5.3M in incentives to airlines in the same year. Its a normal thing that pretty much every airport and region has to do if you want new flights to your city nowadays. The only routes that typically wouldnt require support would be your hub airlines. So I doubt AKL would be supporting Air NZ expansion for example, but definitely would be helping AA/QF to provide competition.
Thanks that's interesting you would think AKL would even give higher incentives than that for the size of their airport compared to CHC
I am guessing the insentives are airfield related? Landing fees etc. AKL is the largest city and airport in NZ so naturally has more airlines wanting to serve it so it doesn’t necessarily mean the insentives will be higher.
It probably reflects the fact that most airlines that were operating AKL had been doing so for many years and so have probably timed off any incentive scheme, whereas CHC has airlines which are far more recent (CZ, CX). Plus as you say AKL will always be the first port if you want to serve New Zealand. Its a lot harder to get a second port served by an airline than the first as the incremental benefit of going to CHC once you have started AKL is less (if you have good domestic connectivity). Does the airline fly another frequency into AKL, or open another port to CHC? Its more risky to open the new port which translates to more support.