1. Air NZ commuter flights set for takeoff
SKY'S THE LIMIT: Paraparaumu Airport manager Heather Woodcock with plans for the $750 million redevelopment.
Air New Zealand has the green light to provide a service between Paraparaumu and Auckland from October.
The airline's subsidiary, Air Nelson, will operate 18 return weekday flights and three return weekend trips, using 50-seater Bombardier Q300 aircraft. Flights will take 70 minutes, compared with about an hour from Wellington.
Air NZ will not give details of the cost of flights until mid-year.
Otaki MP Nathan Guy said the service would have 100,000 potential customers from Porirua to Levin, and tie in with improvements to road and rail services under way on the Kapiti Coast.
Paraparaumu Airport owner Sir Noel Robinson said yesterday he was delighted that, after five years of Resource Management Act negotiations and other regulatory processes, Air NZ had finally given its approval.
"It will put Kapiti Coast firmly on the map. This opens the Kapiti Coast up to local and international travellers and provides Wellington with a second airport.
"If an earthquake like the one that devastated Christchurch hit Wellington, the capital city could be cut off."
Opposition to the 10 to 15-year, $750-million airport redevelopment, which includes an adjoining business park, was battled out in the Environment Court, and fiery local public meetings over the past five years drew up to 400 people.
Descendants of the original airport land owners lobbied strongly for compensation or for land to be offered back after the Government sold the 127-hectare block for $1.6m to Murray Cole and three other local businessman in 1995.
A further blow to the airport's plans was delivered last year by the Civil Aviation Authority, which ruled that a staffed flight information service was needed before the Air NZ flights could begin.
The airport plans to immediately begin an upgrade to include the flight information service.
Airport company director Steve Bootten said it was also hoping to attract other sub-regional airlines to connect with the new service.
About 60 car parks will be developed at the Koru St entrance.
Small operator air2there will continue to provide flights to Nelson, Blenheim and Wellington from the airport and Helipro has a flying school for planes and helicopters based there.
The first stage of Kapiti Landing Business Park is on track, with an 8700sqm Mitre 10 store due to open in March.
Kapiti Mayor Jenny Rowan congratulated Sir Noel and the airport company for their perseverance through the long regulatory process.
"The airport redevelopment and the introduction of commercial flights is hugely positive for Paraparaumu and the Kapiti Coast region."
Kapiti Coast Chamber of Commerce chairman Mark Ternent said daily flights to Auckland would provide better work and leisure options for people living in Kapiti and from Tawa to Levin.
"The airport will be a regional asset, helping take the load off Wellington Airport, which is congested at peak hours."
A service from Paraparaumu to Wairarapa and Auckland was started more than 10 years ago, but failed to attract enough passengers.
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Fulton Hogan will start work on a $2 million project to reseal the main runway mid-February
Airport company PAL has lodged a resource consent application to build a $700,000 terminal, accompanied by 60 car parks, planned to be built over the next 6 months
Work is also about to start on $600,000 worth of runway lighting and navigational equipment upgrades. Contracts have been let to Radiola
PAL is working with Airways NZ for the training and recruitment of flight information service operators
The name of the airport will be changed from Paraparaumu Airport to Kapiti Coast Airport.
2. Air NZ pin-up model for joint ownership
Air New Zealand has been held up as a shining example of the benefits of a joint government and private ownership of strategic assets.
The Government bailed out the airline in 2001 after its Australian subsidiary Ansett Airline collapsed, threatening to drag the national carrier down with it.
The Government injected $885 million of taxpayer money in Air New Zealand that year, and owns 76.5 per cent. It invested a further $149m in 2004 as part of a rights issue, taking its total investment to $1.03 billion.
Yesterday, Air New Zealand shares were trading at $1.43, down 2c and compared with the Government's average buy-in price of $1.29 each.
The airline paid the Government $56.3m in dividends last year.
Forsyth Barr head of research Rob Mercer said that as a majority government-owned listed company, the airline had grown and innovated in a highly competitive market.
"It has probably gone from one of the most hated companies to one of the most loved companies."
The airline had paid a good dividend and the Government had made a capital gain on its investment, Mr Mercer said.
Air NZ said "a change in the Government's shareholding while retaining a majority stake would have no influence on Air New Zealand's business but would provide greater market liquidity for shareholders".
Goldman Sachs JBWere aviation analyst Marcus Curley said a partial sell-down had been expected.
"I don't think the market is going to be hugely surprised with this. What the statement does is firmly bring it on to the agenda."
Air New Zealand had poor liquidity for a company with a large market capitalisation, Mr Curley said.
Improved liquidity would attract the attention from investors in New Zealand and overseas.
A counter investment by Air New Zealand's new Australian alliance partner, Virgin Blue, did not appear to meet the Government's test of a "widespread and substantial New Zealand ownership", Mr Curley said.
Last week Air New Zealand bought a 15 per cent stake in Virgin Blue to gain further exposure to the benefits of their trans-Tasman alliance and possible future co-operation on long-haul routes.
4. Air NZ to increase capacity on Chch-Hokitika route
Air New Zealand is moving to fly larger aircraft on its Christchurch to Hokitika route.
The route is currently operated by subsidiary Eagle Air's 19-seat Beech 1900D and Jetstream 32 aircraft but from April another subsidiary, Air Nelson, will also fly scheduled return services using its 50-seat Bombardier Q300 aircraft.
New Civil Aviation Authority approval for Hokitika Airport means it can now accept scheduled Q300 flights.
The move will see the route's capacity increase 12.6 percent to 1200 seats a week.
The Q300 will operate a morning return service on Mondays, Wednesdays and Fridays, with an additional return service on Friday evenings.
Some existing flights had been reorganised to accommodate the new services and spread frequency to meet demand.
There were no plans to offer a Christchurch-Westport flight, said Air New Zealand spokeswoman Andrea Dale.
A six-month Eagle Air trial for flights between Christchurch and Westport was scrapped in December 2009 due to lack of demand.
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