Dunedin city leaders have criticised Air New Zealand following the latest reductions in transtasman flights from Dunedin.
But Air New Zealand says, like many airlines around the world, it is in a position of unprecedented slow-down in the demand for travel and the number of flights out of Dunedin was unsustainable.
The Dunedin City Council, the University of Otago and the Chamber of Commerce yesterday expressed dismay on learning Air New Zealand would be reducing, by about a third, its transtasman flights to and from Dunedin International Airport to a schedule more accurately reflecting seasonal demand.
Dunedin Mayor Peter Chin said that when Freedom Air flights were replaced by Air New Zealand flights last year, councillors were assured the airline was committed to the city long-term.
In light of that, the council gave an extra $100,000 to Tourism Dunedin to promote Dunedin, including $50,000 which was spent in a joint project with Air New Zealand promoting Dunedin online.
"This latest reduction in services makes it seem that the goodwill shown by council has been misplaced."
University of Otago chief operating officer John Patrick said the university was a major customer for Air New Zealand and he was disappointed with the company's "apparent lack of commitment to Dunedin and the region".
Local businesses also voiced concern about the cutbacks.
Orbit Travel managing director John Harley said any reduction in services made flying to or from Dunedin one step less convenient.
While flights out of Christchurch seemed cheaper on the surface, people needed to think twice about the time and expense of flying or driving north to make international air travel connections, he said.Otago Chamber of Commerce chief executive John Christie said direct flights were vital for exporters and importers who needed to get to and from meetings with business contacts as quickly as possible.
The reduction showed a "complete disregard" for its southern customers and he expected Air New Zealand would receive a backlash from loyal customers.
"It is more than disappointing. If Air New Zealand can't offer this service for Dunedin, maybe we should be looking for another airline which can."
Air New Zealand Tasman Pacific Airline general manager Glen Sowry said last night he could understand the concerns, but he hoped customers, especially business people, would understand it was not viable to run half empty planes.
In the past year, the average load in planes travelling between Australia and Dunedin was 50%-60%.
"That is simply not sustainable, so the approach has been to focus the schedule around when there is a demand for travel."
The global aviation market was under huge stress and every major airline was grounding planes and laying off staff.
Air New Zealand had to review its entire network, not just its Dunedin service.
It did not want to completely withdraw international flights from Dunedin, as it had done in Hamilton, and remained "fully committed" to the city, including continued promotion of Otago as a destination, Mr Sowry said.
Moving to seasonal flights was a "difficult decision", but if the demand returned, so would the flights.
As a result of the Air New Zealand move, at least nine part-time ground jobs have gone as well.
A Customs New Zealand spokesman said six part-time Dunedin staff accepted redundancy following the changes and one resigned, leaving one part-time officer.
Three part-time MAF Biosecurity airport staff had taken redundancy, leaving four full-time staff, a spokeswoman said.
The six police staff based at Dunedin International Airport were not affected, as there was an international requirement for them to be present when larger planes, on international or domestic flights, landed.
