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#158 by tubbsy
22 Jan 2004, 05:02
THURSDAY , 22 JANUARY 2004


Aggressive Australian low cost airline Pacific Blue has thrown its support behind the development of Whenuapai Airbase in Auckland as a commercial airport, saying it would use it.

The Air Force will leave the base during the next five years and the Defence Force must give the Government a recommendation on the future use of the land in April.

Wellington utilities investor Infratil says it will pay for the $50 million development cost of converting the airbase to an airport which could service domestic and short haul jets.

Existing capacity constraints at Auckland International Airport at peak times for international flights and throughout the day for domestic services would limit Pacific Blue's expansion, the airline's chief executive Tony Marks said in his company's submission on the issue.

Auckland International Airport has said that the city does not need a second commercial airport because expansion plans for its Mangere site would meet the region's air travel needs for the next 50 years.

But Mr Marks said it was not relevant whether Auckland International had the capacity to expand.

"The issue, as with all airports throughout the world, is that it tends to be difficult to regulate a monopoly supplier of a service that impacts on the community as a whole..."

"Having a second airport ensures a certain amount of price tension that would be far more effective than any regulatory policy," Mr Marks said.

By keeping costs down, those savings could be passed on to consumers, stimulating overall traffic.

This strategy had been proven successful by budget airlines around the world in population catchment areas with 100,000 or fewer people, Mr Marks said.

"We believe we could offer services to a number of regional centres such as Napier, Queenstown and Dunedin on the basis that given the right price, there would be enough traffic to sustain jet services."

Auckland International Airport was difficult to get to, especially for North Shore residents wanting to catch morning flights.

An airport would also benefit the community and businesses in the area, Mr Marks said.

"Pacific Blue does foresee that we are likely to fly to both airports at some stage if adequate facilities would be available.

"You might have two 7.30am departures to Wellington, one from each airport, and we have no doubt we could fill them both," Mr Marks said.

"A city of a million people, and not just London and New York, can support a multi-airport environment."

Meanwhile, Singapore Airlines said yesterday it would add another two weekly direct flights between Auckland and Singapore from March 29.

The flights, each Sunday and Thursday, will take the airline's schedule to 12 flights a week.

Air New Zealand budget offshoot Freedom Air will also unveil details of new services to Fiji from Hamilton and Palmerston North on Wednesday.

Air NZ is to launch a new international route on Tuesday.



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