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Old July 28th, 2009, 07:00 AM   #1
OptomistOne
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Tasmanian Airports - News/Pics/Discussion

The Master Plan for Hobart Airport for the period 2009 -2029 has just been released for comment. Article covering the release from The Mercury Newspaper.

DIRECT flights to New Zealand and Asia are on the radar for Hobart Airport.

Aerobridges are also planned to end the outdoor walks to and from the aircraft and there will be more shops.

Hobart International Airport Pty Ltd has released its draft master plan to 2029, which includes a possible $1.1 billion terminal upgrade.

With a forecast growth in passenger numbers of about 4 per cent annually, the airport predicts movements will increase from 1.82 million in 2008 to 4.25 million by 2029.

That would be an increase from the current 5500 daily passenger movements on 40 flights to 12,500 passengers per day on 88 flights.

Despite the recent $26 million terminal upgrade, the 20-year vision outlines need for further expansion, including the introduction of a passenger apron and aerobridges.

The plan highlights the issues that introducing aerobridges could pose given that the current terminal is only on ground level.

"In terms of engineering and design, aerobridges typically connect to the first floor of a terminal building, posing a potential level change issue for the airport if introduced in the future," the draft says.

The draft also gives "low, medium and high scenarios" for future growth in retail space in the terminal and on surrounding airport land.

"Under the low scenario 294,500sq m of commercial floor space is estimated to be developed over the 2009-29 period," it says.

"This floor space, along with terminal-based activity, is expected to grow employment at the airport from 250 currently to 2120, lifting the direct contribution in value added to the economy from its current level of $25 million to $175 million.

"The respective figures for the high scenario at 2029 are 373,000sq m of development, 3130 jobs and a direct contribution to the economy of $232 million."

Despite the last flight to New Zealand taking off in 1998, ending a 17-year relationship between Air New Zealand and Hobart, the draft plan predicts overseas flights will return as soon as 2012.

"It is anticipated that international regular passenger flights could commence between Hobart and New Zealand and Hobart and Singapore or Kuala Lumpur by 2012."

International traffic could eventually account for 8 per cent of all airport traffic.

The Preliminary Draft Master Plan is available for comment until October 16.
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Old July 28th, 2009, 07:55 AM   #2
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I dont see much demand for a Sustainable TAS-NZ flight..I suppose Virgin has been launching a whole heap of crazy routes lately so you never know.

Quote:
"It is anticipated that international regular passenger flights could commence between Hobart and New Zealand and Hobart and Singapore or Kuala Lumpur by 2012."
Now that is the most ridiculous thing I have heard all week. What airline in their right mind would even consider such a route
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Old July 28th, 2009, 08:10 AM   #3
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Perhaps it is just one filght every six months.......
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Old July 28th, 2009, 08:10 AM   #4
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I liked Hobart Airport, except the lone coffee shop was a massive ripoff. You get there every airport though as it is a captive market.
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Old July 28th, 2009, 09:50 AM   #5
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$1.1 billion dollar terminal revamp??? It'd wanna be some revamp for that much!
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Old July 28th, 2009, 10:41 AM   #6
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DRAFT can be viewed here: http://www.hobartairpt.com.au/images...ter%20Plan.pdf

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Old July 28th, 2009, 05:42 PM   #7
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Air NZ started CHC-HBA 737 flights in 1981 it was a saturday service. They competed withh TAA flying its larger 727 weekly flight. When TAA pulled out Air NZ started a second weekly CHC-HBA flight. There was also flights from AKL-HBA with both QF AND Air NZ. So there was demand in the past for flights and today most passengers have to connect via MEL. With the population growth since then at AKL and CHC and even the state of Tasmania is now reaching 500 000. There will be a market for direct flights again. Virgin's E-jets would be a good fit for NZ to HBA flights. So I disagree with Airbus A320 comment above
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Old July 29th, 2009, 07:35 AM   #8
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Virgin would struggle to break even with such a long haul flight in a Embrear.
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Old July 29th, 2009, 02:11 PM   #9
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Of course HBA-NZ would be viable. It was viable enough to begin with! Back in 1998; HBA-MEL peaked at 78,000 pax, HBA-SYD 11,000. Compare this with Jan 2009 where HBA-MEL got 117,000 pax, HBA-SYD 49,000. So the market has grown at least 50% from 1998 to 2009. The marginal route with a full cost carrier in 1998 will be profitable for a low cost carrier in 2009.

Isn't there talk of an announcement in August this year about a "common border" for air travel between AUS and NZ, so flying HBA-NZ could be done through the domestic terminal at HBA, and thus implemented sooner than the proposed 2012 timeframe?
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Old July 30th, 2009, 09:43 AM   #10
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Yes your dead right mate. I can't see Virgin having any problems they do long flights with the E-jets already like ADL-BNE.
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Old July 30th, 2009, 10:54 AM   #11
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I flew into Hobart last week for the first time and was impressed by the current terminal. Perfect size for current conditions.

Good strategic management will ensure that Hobart airport will not fall behind with solid growth and end up being in Adelaide's shoes going back a couple of years.

But jeez 1.1 billion for a new terminal...
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Old July 30th, 2009, 02:54 PM   #12
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I can imagine Air NZ doing AKL-HBA, non-stop or via CHC on a narrowbody once or twice a week. On other days of the week the same plave could then fly AKL-Canberra, AKL-Adelaide.

Doesn't SQ have a charter route SIN-HBA?...
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Old July 31st, 2009, 06:11 AM   #13
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Quote:
Originally Posted by essendon bombers View Post
I can imagine Air NZ doing AKL-HBA, non-stop or via CHC on a narrowbody once or twice a week. On other days of the week the same plave could then fly AKL-Canberra, AKL-Adelaide.

Doesn't SQ have a charter route SIN-HBA?...
This extract from the Master Plan might help to answer the above question.

The Tradewinds charter organisation has previously operated a series of direct charters from Singapore using Singapore Airlines 777 aircraft. There is also the occasional itinerant international charter and there have been two flights this year by First Choice using a 757-200.

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Old September 29th, 2009, 06:45 AM   #14
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Post Airport aspires to NZ service

From today's Mercury, http://www.themercury.com.au/article...ania-news.html

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HOBART Airport is continuing to work towards the possible re-establishment of a regular service to New Zealand.

The airport has been talking with its counterparts in Wellington, Christchurch and Auckland.

In 1998 Air New Zealand ended a Hobart-Christchurch service that had operated for 17 years.

In its final years the service ran weekly from October until the end of summer.

The only international direct flights from Hobart Airport now are Australia's Antarctic flights.

But Hobart Airport CEO Brett Reiss said the airport had aspirations to international regular services in future.

Mr Reiss said if such a service eventuated it would probably be to Auckland.

"We are a capital-city airport but effectively serving a regional population," he said.

Until taking up his current position Mr Reiss was commercial services and airport planning general manager at Christchurch International Airport.

He said Christchurch had about 360,000 people and the Hobart region about 200,000.

"The two population centres aren't quite big enough to establish a daily service, certainly not," he said.

"Somewhere like Auckland with 1.5 million people allows you that critical mass you need, you get far more demand."

Mr Reiss said most talk about a New Zealand service had been with the airports.

"Auckland remains a target and we've had some reasonable discussions with the airport and some initial discussions with an airline," he said.

Hobart Airport and border agencies have discussed the potential for an overseas service starting as early as 2010.
Daily HBA-AKL sounds good! I wonder which airline is in discussions?
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Old September 29th, 2009, 03:40 PM   #15
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RE-Introduction HBA-NZ Flights

On this issue, a representative of Air NZ wrote to me regarding my question would they return to Hobart. The answer is no, for several reasons one that stood out was "Objections from existing airlines that serve Hobart now, prevent Air NZ from returning to Hobart" They must get a lot of trans tasman feed on these domestic flights and don't want to loose it by allowing non stop international flights from over the tasman. Also they point out the expense of opening up a new base and the costs associated with that, and that tasman airfares are below the cost of providing them, and they need to limit there losses as much as possible now and not extend losses further. So I don't think Air NZ will return, maybe Virgin could start as already have a base in both HBA and AKL and have the right size plane e.g. the E190
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Old October 1st, 2009, 08:54 AM   #16
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As I understand it - all Australian airports besides SYD/MEL/BNE/ADL/PER are deregulated for overseas airlines. So AirNZ must be referring to alliance partners or codeshare revenue or something. Hub and spoke logic only serves the airline's bottom line, not the passengers benefit.

I think Virgin would be the best bet - one of the Pacific Blue flights on a round trip from AKL to HBA and then MEL or similar.

I'd also like to imagine the SIN option is there if enough direct marketing of Tasmania is done.
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Old October 5th, 2009, 01:07 AM   #17
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Airlines bleed in Tasman route scrap

I like an article with figures, so here is one with good detail

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Airlines bleed in Tasman route scrap
Quote:
Consumers flying across the Tasman are continuing to benefit from recession-induced desperation, with airlines vying for market share to counter languishing yields.

Excess capacity on the route has forced fares down. But you don't have to have a business degree to recognise the lower airline load factors can't be sustained for ever.

The question is who will be first to yield?

Emirates has flown into strife with its new double-decker A380 jet between Sydney and Auckland. Last month, the plane flew with as few as 80 economy passengers on some days, and often no business class passengers.

The A380 provided a big jump in capacity 399 economy class seats, 76 in business and 14 in first class. To date, Emirates is the only carrier flying an A380 to New Zealand and it has been trying to charge a premium for what it views as a superior option for travellers.

But the higher fares don't seem to be working for the airline.

Richard Jewsbury, the carrier's senior vice-president commercial operations Far East and Australasia, says the loads on the route have averaged 79 per cent for the year but he concedes August was the worst month so far.

He says Emirates is committed to the ''big bird'' on the Tasman for the long-haul. However, he says there is no contract with Auckland Airport forcing the airline to keep that plane on the route, even though the airport built the new air bridge for the double decks at a cost of $50 million.

Low-cost carrier Pacific Blue launched its services out of Hamilton to Sydney and Brisbane last month.

Passenger numbers obtained by The Independent for its first three weeks of operation show the September 1 launch to Sydney had 132 passengers (73 per cent loading) on board. However, eight days later the numbers on its 180-seat Boeing 737-800 aircraft were down to 63.

The load average from September 1 to September 18 was only 49.6 per cent on the route and that includes a lot of cheap and next-to-nothing fares, and media and client freebies on the inaugural flight.

The Hamilton-to-Brisbane route has done only a little better, with a loading average over the same period of 61 per cent. The lowest load (44 per cent, or 80 passengers) was on September 13.

What does that mean?

The low-cost airline model works by charging low fares and having high capacity. So load factors at that level could be disastrous for the airline.

Industry observers say most of the airlines are struggling to make sufficient money on the trans-Tasman route, even when load factors are in the high 70 per cent range. That's because they have to leave planes they own on the ground in favour of smaller aircraft.

Brett Godfrey, chief executive of Pacific Blue parent Virgin Blue, admits loads have not been up to expectation on the Hamilton route, but he says it takes time for people to gear up to Hamilton being back in operation.
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Air New Zealand pulled out of Hamilton progressively last year and this year. It found it couldn't make the route pay using either its now-defunct no-frills subsidiary Freedom Air or other Air NZ aircraft.

To add to the competition on the Tasman, Qantas last week launched a new Boeing 737-800, New Zealand-registered plane on the route, after turning the domestic routes over to its low-cost subsidiary Jetstar in June.

The full-service aircraft, with 12 business-class and 156 economy seats, will be joined by another two by the middle of next month and a further three next year, replacing ageing Boeing 737-300 aircraft.

Qantas chief executive Alan Joyce had earlier said Qantas came close last year to exiting the New Zealand domestic market because it was haemorrhaging money and upgrading its old Boeing fleet was too costly in the present economic climate.

The company revealed in August, when reporting a loss for the group of A$77 million (NZ$94m) in the year to to June 2009, that it had lost A$39m on its domestic New Zealand operations in the same period.

That loss, said Joyce, largely resulted from transition costs from Qantas transferring its New Zealand operations to its low-cost carrier Jetstar and changing Qantas, through its New Zealand Jetconnect company, to a service only for the Tasman.

Joyce said the company made the decision to move to Jetstar on domestic routes, where it uses Airbus A320 aircraft, because the business case to replace aircraft with 737-800s was not solid enough.

"The business wasn't going as well as we wanted. It was really hard to justify rolling over the fleet.'' Qantas' new planes on the Tasman will initially fly the Melbourne and Sydney routes.

Qantas also recently introduced a Boeing 767 freighter aircraft on the Tasman and Joyce said there would be more investment in this area because freight was performing better than passenger revenue.

To further convolute the picture, Emirates and Virgin Blue's V Australia announced a code-share on the Tasman and across the Pacific to the United States from Sydney from October 25. It got good press coverage, particularly as it promised fares for Kiwi travellers up to 40 per cent cheaper than existing fares between New Zealand the US.

But travellers won't be able to make this comparison themselves until mid-October, when the code-share is launched, as neither airline intends putting fares on its internet booking sites until then.

Emirates' flights to Los Angeles are still listed on its site as flying via Dubai at a cost of $4400 return economy.

Any passengers wanting to travel the longer route to Los Angeles via Sydney using Virgin services have been able to do it anyway using its subsidiaries Pacific Blue and V Australia.

With waiting time in Sydney for a connection, it adds up to another four to five hours on the route compared with Air NZ's direct flights from Auckland.

But it is cheaper via Sydney, especially because V Australia has been offering ludicrously low fares to try to get more market share on the fiercely competitive route.

V Australia's February launch on the Pacific in a recessionary climate was the prime contributor to Virgin running up a A$160m loss this year to June. It has been struggling to lift yields, though July operating statistics showed the load factor had improved to 75.7 per cent from 67 per cent in June.

Virgin's code-share with Emirates is more a case of continuity of full service, as Pacific Blue is a budget carrier compared to V Australia's full service. Another reason for V Australia opting for Emirates and not its own Pacific Blue for code-sharing on the Tasman, is likely to be the fact it has applied to regulators in the US and Australia for a joint venture alliance with US carrier Delta Air Lines.

Both carriers want to extend the alliance on the Pacific to New Zealand, using Pacific Blue, not only on the Tasman but for domestic services in New Zealand.

Air New Zealand has made submissions to US and Australian regulatory watchdogs opposing the joint venture.

Air New Zealand was blocked in January by the Australian Competition and Consumer Commission from a similar revenue-sharing deal with Air Canada.

Like other carriers, Air New Zealand is struggling to lift yields on the Tasman so it has had to be clever about managing capacity.

The airline says its group-wide yields for August were down 11.1 per cent on the same month last year but it does not give dollar figures because of commercial sensitivity.

It does break down load factors though.

They were holding up in August only because of a sizeable reduction in plane capacity because of falling passenger demand on routes, particularly long haul, in the wake of the global meltdown.

Domestic demand was up 4.2 per cent on last year for the month, with the load factor rising to 76.3 per cent, albeit on 3.8 per cent less capacity.

Tough times forced the carrier to reduce capacity on the Tasman by 14.5 per cent through the use of smaller aircraft and the axing of Tasman flights out of Hamilton and Dunedin.

After a capacity reduction of 24.1 per cent, load factors ended up the same as last year 79.6 per cent.

Air New Zealand is focused on a replacement of aircraft on its New Zealand domestic routes, with Airbus and Boeing fiercely lobbying their aircraft choices.

As one analyst said: ''It's the only airline deal in town in this corner of the world.''

But last week Virgin Blue said it was in talks with Boeing over plans to spend A$4 billion replacing planes coming off lease.

It looks like the competition won't be reducing any time soon.
No surprises here. The problem is they all seem committed for the long haul, nobody wants to budge, so profit might be along way off.
Who is struggling the most? Well that would be EK. Loads are dreadful on the A380 and even worse from Melbourne, plus they have been charging peanuts lately. But out of them all, EK can sustain those losses. Where as Pacific Blue cant at the moment.

So what routes will be cut next guys? PB's Hamilton Services cant be far off, unless they retime them

Last edited by Airbus_A320; October 5th, 2009 at 01:12 AM.
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Old October 5th, 2009, 02:12 AM   #18
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I flew EK312 Sydney - Chrischurch return last year and it was awesome. The plane was a long haul A330 with the same level of inflight entertainment and service offered on the Dubai - Sydney leg, and the departure times at both ends are much more reasonable also. Compared to Qantas and Air New Zealand, who both use crappy old planes for the route, and Jetstar, which insists on departing and arriving around midnight, Emirates are streets ahead on SYD - CHC. Both legs were quite full, but it was around Christmas so thats to be expected. My girlfriends parents are flying over with them later this month so will be interestin gto see what they make of it all.

To top it all off, they even upgraded me to business class on the way over, needless to say I will be flying them again.
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Old October 5th, 2009, 02:14 AM   #19
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Where are these so called cheap fares? Its still over $400, $500 in many cases. That is NOT cheap. Quite frankly that is a ripoff.
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Old October 5th, 2009, 03:02 AM   #20
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I just paid $199 to get from Melb to Christchurch next month with Pacific Blue. Problem is that I live in Adelaide so I will have to fly over to MEL the night before, however I managed to get a $257 Qantas fare from Wellington to Adelaide on way back. Wellington seems to be much more expensive to fly to or from than CHC
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