Flight-threat comments criticised

Clare Curran.
Clare Curran.
Dunedin South MP Clare Curran has been accused of political grandstanding in her comments about Air New Zealand flights through Dunedin being under threat as the Government further sells down its stake in the national carrier.

Ms Curran said yesterday Dunedin should be ''very concerned'' about the Government's sell-down of Air NZ shares as private investors would demand higher dividends and uneconomic routes might get cut or prices rise.

She pointed back to the decision by a former Labour government to bail out the airline because of, among other reasons, a potential private buyer wanting to cut all uneconomic routes, including flights to Dunedin and other regional areas.

''The risk with nearly half of Air NZ being privately owned is those investors who are focused only on profit will once again call into question regional routes.''

Dunedin hould be speaking out against the partial sale and questioning the logic behind it, because it could result in yet another blow to the region, she said.

Otago Chamber of Commerce chief executive John Christie has battled with airlines over many years about services through Dunedin airport.

He found Ms Curran's logic hard to understand.

''Whether the airline is in public or private ownership, it should be operated in the most efficient way possible. She seems to imply it will be more efficient under private ownership.

''I can't see her points adding up. Once Air NZ was listed on the NZX, the scrutiny should be there for everyone to see - whether the Government owns 73% or 53%.''

Ms Curran's points had more to do with Labour's opposition to the sales of state-owned enterprises, he said. While it was a ''fair call'' to make, the sell-down should have no more effect on Dunedin flights than previously.

Dunedin had to work hard to maximise opportunities to work with Air New Zealand and the chamber, along with the business community, was mindful of having to support the supplier of the largest number of flights in and out of the city, Mr Christie said.

The challenges included the availability of seats, frequency of flights, timing of flights to enable business people to work out of town without having to stay overnight elsewhere, and pricing.

Pricing was not seen as important as seat availability and flight frequency, he said.

''We hear whispers all the time about Air NZ changing flights and we have been known to go to them with our concerns. Don't forget, Dunedin is an important destination for them and they won't walk away from a profitable market,'' Mr Christie said.

Ms Curran acknowledged the reasons for Government ownership of the national carrier were not the same now as they were more than a decade ago but she denied being alarmist in her comments.

She remained concerned about the security of regional routes in New Zealand after Air NZ had cut some previously.

''We should be talking about growing our airport and routes into Dunedin, rather than a question mark hanging over the airline's services,'' Ms Curran said.

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