Neha Jain: http://newzealandaviationnews.blogspot.com/ m 9

1. The Omaka Aviation Heritage Centre will be able to expand to house three new exhibits with a $1.4 million grant from the Marlborough District Council.

New Zealand Aviation Museum Trust chairman Brian Greenall said this morning the trust was overwhelmed with news of the council grant, which would let it push ahead with expansion during the next 20 years.

"We can now look forward, instead of coping," he said.

The council decided on Monday to put the grant in its budget for 2011-12.

Council corporate finance manager Martin Fletcher recommended the council pay the centre's $1.4m loan and the centre repay this when it could, but councillors voted 7-5 to make a no-strings grant.

The aviation centre covers its costs from visitor admissions of nearly $400,000 but the $105,000 annual interest on the $1.4m loan taken out in 2006 puts the trust in the red. The council is guarantor for the loan.

Paying the interest has been a problem because the trust's aviation business park at Omaka has not developed well.

However, Mr Greenall denied the council grant was a "bailout".

The decision came down to the council realising the benefit of a partnership and the centre's importance to the district, he said.

"The council wanted to do more than was recommended to them.

"That's what I find heartening and overwhelming. It shows how much the council believes in what we are doing."

The funds previously used for interest payments would go to new exhibits, including a Rugby World Cup exhibit.

A World War II exhibit, one for the "golden ages" of aviation (1920s and 1930s) and rural aviation were planned for the next 20 years.

Mr Greenall said he did not want to speculate what would have happened to the centre if the council had voted against a rescue package.

"It was just going to be harder for us.'

He hoped possible public opposition would not convince the councillors to go back on their plans before a final decision is made in June.

"There will be backlash – there are always knockers for everything in this town," he said.

"It's a universal thing that people will always knock others who are trying to make progress for whatever reason.

2. New Zealand aviation sector stands firm after earthquake
05 Mar 2011
A post-earthquake message from the CEO of Aviation New Zealand:
The New Zealand aviation industry is deeply grateful for the generosity, sympathy and support they have received from around the world since the Christchurch earthquake of 22 February 2011.
The earthquake was confined to Christchurch and Lyttelton, and many businesses there are already back up and running.
New Zealand remains open for business, and appreciates the continued support of our international and domestic partners – it shows the importance and strength of those personal and business relationships.
Christchurch’s aviation industry comprises aircraft maintenance repairs and overhauls, engine overhauls, aircraft fit-outs, component manufacture and refurbishment, pilot training, ground support equipment, fuel supplies, aviation services, and air transport operators (ranging from airlines to small helicopter operators).
Some aviation industry members in Christchurch suffered extensive or total loss to their homes and, in some cases, their factories.
However, Christchurch Airport opened again the day after the earthquake. After thorough checks of facilities, the Christchurch Engine Centre and major Air New Zealand maintenance base in Christchurch resumed operations. Other companies in the vicinity of the airport are operating normally.
The aviation industry is distributed throughout New Zealand and most of it was not affected by the earthquake.
In terms of practical support for Christchurch aviation businesses, overseas customers should remain in contact with them and continue doing business. The same ‘world-class’ products and services are still available from Canterbury companies.
If you wish to support the people of Christchurch with practical assistance, New Zealand's Prime Minister John Key has launched the Christchurch Earthquake Appeal, a global fundraiser for the recovery effort in the city and the Canterbury region.
In the rest of New Zealand, life and business continue as usual. We are working together to rebuild Christchurch and showcase New Zealand during the Rugby World Cup later in 2011. The biggest sporting event of the year, will kick off as planned in Auckland on 9 September and all matches will be played in New Zealand.
The New Zealand aviation industry will have significant showcasing events throughout the Rugby World Cup. These include vintage aircraft displays in Blenheim, Gore, and Masterton; supply chain seminars in Auckland and a display/innovation event, FLAIR 2011 in Hamilton.
We look forward to seeing our aviation friends in New Zealand during the year.

2. Airlines Cutting Flights and Raising Fees

Right now the airline industry is in a hard spot. Airlines from all over the world are doing whatever they can, not only to make more money, but to cut their costs. As airlines get hit with higher fuel prices, travelers are getting slapped with higher fees.
These new higher fuel prices actually stand to threaten the recovery of the airline industry as a whole. Although the airline industry was showing signs of improvement, it appears that some experts think that things could come crumbling back down.
Just last month, Air New Zealand, as well as Qantas, increased fares on some of their routes. The biggest problem here is that these two airlines had already increased their fares last year by 9 percent. Some experts are scared that some consumers could get priced out of traveling by air.
As said earlier, the biggest problem affecting airlines is jet fuel prices. These fuel prices have been rising due to the fact that the price of crude oil is also on the rise. During the past three months, crude oil prices have gone up as much as 40 percent. As trouble in the Middle East continues, people expect gas prices to continue to rise.
An aviation analyst at Goldman Sachs, Marcus Curley, said that Air New Zealand was largely hedged for the next six months against crude prices. However, they were not hedged so well against jet fuel prices. The recent increase in crude is not as important. It’s actually the refining margins that are so significant. Something will have to be done quickly or airlines are going to have to continue to increase fares and fees.

3. China Southern Announces New China/New Zealand Service
Published by Ozgur Tore
TUESDAY, 08 MARCH 2011 17:17
China Southern Airlines will begin three-times-weekly direct air service between Guangzhou and Auckland.

The new service begins April 8 and will use Airbus A330-200 aircraft.

With launch of the new service, China Southern will be the first airline company in mainland China to provide direct air transportation to New Zealand.

Mr. Kevin Bowler, CEO Tourism New Zealand, said that “I see great opportunities for closer tourism links between our two countries. New Zealand currently welcomes more than 123,000 visitors from China each year, making it New Zealand’s fourth-largest visitor market after Australia, the UK and USA. China is also one of New Zealand's fastest growing visitor market and many New Zealand tourism businesses are excited about the future of tourism between our two countries.”

He added that, “developments such as this new China Southern Airlines direct connection between Guangzhou and Auckland help foster even stronger links between China and New Zealand in tourism and in education, and in business, bringing both our countries closer together.”

President & CEO of China Southern Airlines said, “As China’s economy continues to grow and exchanges between China and New Zealand deepen, the number of passengers travelling between the two nations is quickly rising. We are pleased to announce that China Southern will launch this new Guangzhou-Auckland service in the 2011 Summer/Autumn schedule with three initial weekly flights and there will be a gradual increase of flight frequency as markets mature.”

“The aviation marketplace in Oceania where China Southern has distinctive advantages has been of significant importance to our airline. We estimate that by 2015, China Southern will be operating more than 110 weekly return flights to Oceania and offering Oceania connections to Europe, the US, Japan, Korea and the Middle East via our Guangzhou hub with the goal of developing Guangzhou into one of the best transit points for passengers travelling between Oceania and the rest of the world.”