So, after all the handwringing, the complaints, the stomping of feet, the Commerce Commission's shooting down talk of an investigation into domestic airfares.

Greg Foran and Co. will see this as vindication - validation that, despite the headlines and Consumer NZ's claim the market is quote broken, the reality is their costs have gone up and, surprise surprise, it's expensive to run routes with high fixed costs to small places with few people. 

So they conclude doing a market study —which is easy politics, it scratches the itch— won't actually achieve anything. 

And they say it won't lead to consumers getting a better deal. 

Refreshing honesty. Could the same refreshing honesty not have been applied to the claims about banking/supermarkets/petrol stations, etc, etc, etc?

Like most things post-Covid, costs have gone sky high.

Airport landing charges - up.

Air traffic control - up.

Security levies - up.

And when you're a business, one owning to the tune of 51% remember, you recoup those costs by putting your own prices up. 

We don't want them subsidies flights and crashing our business, right? 

We sold off the national carrier in 1989. We re-nationalised it in 2001after Ansett went bust - that cost us close to a billion bucks. 

Ansett's problem was high costs and regulation changes - when airlines fail, it gets expensive for taxpayers.

Now I don't want to defend an airline charging me $400 to fly for 40 minutes anymore than the next guy.

But this is the crux of most of the complaints we hear about through the media. 

Short flights, regional flights are expensive right now and people don't use them often enough. 

They use more fuel as a proportion of total flight time because take-off and climbing is when you burn through it - it takes a bit of gas to lift us into the sky.

The cost of fuel is a third of operating cost —something Foran can't control— that's more the purview of a Putin or a Sultan.

Planes spend way too long sitting on the ground, your costs are higher, and you've got fewer passengers to spread those costs over.

Using jets would be more efficient but, again, we don't have the people to fill them. 

Which is why I said the other day —and it's true but doesn't make it palatable— we're a small country, we pay a price for sparsely populated, beautiful and untouched landscapes. 

The ComCom does say there's room for improvement, but on the whole, the real enemy here is the politician or talking head who tells us by simply bashing Air New Zealand's head into a wall, they can make Kiwis fly on the cheap.

So, after all the handwringing, the complaints, the stomping of feet, the Commerce Commission's shooting down talk of an investigation into domestic airfares.
Greg Foran and Co. will see this as vindication - validation that, despite the headlines and Consumer NZ's claim the market is quote broken, the reality is their costs have gone up and, surprise surprise, it's expensive to run routes with high fixed costs to small places with few people.&nbsp;
So they conclude doing a market study —which is easy politics, it scratches the itch— won't actually achieve anything.&nbsp;
And they say it won't lead to consumers getting a better deal.&nbsp;
Refreshing honesty. Could the same refreshing honesty not have been applied to the claims about banking/supermarkets/petrol stations, etc, etc, etc?
Like most things post-Covid, costs have gone sky high.
Airport landing charges - up.
Air traffic control - up.
Security levies - up.
And when you're a business, one owning to the tune of 51% remember, you recoup those costs by putting your own prices up.&nbsp;
We don't want them subsidies flights and crashing our business, right?&nbsp;
We sold off the national carrier in 1989. We re-nationalised it in 2001after Ansett went bust - that cost us close to a billion bucks.&nbsp;
Ansett's problem was high costs and regulation changes - when airlines fail, it gets expensive for taxpayers.
Now I don't want to defend an airline charging me $400 to fly for 40 minutes anymore than the next guy.
But this is the crux of most of the complaints we hear about through the media.&nbsp;
Short flights, regional flights are expensive right now and people don't use them often enough.&nbsp;
They use more fuel as a proportion of total flight time because take-off and climbing is when you burn through it - it&nbsp;takes a bit of gas to lift us into the sky.
The cost of fuel is a third of operating cost —something Foran can't control— that's more the purview of a Putin or a Sultan.
Planes spend way too long sitting on the ground, your costs are higher, and you've got fewer passengers to spread those costs over.
Using jets would be more efficient but, again, we don't have the people to fill them.&nbsp;
Which is why I said the other day —and it's true but doesn't make it palatable— we're a small country, we pay a price for sparsely populated, beautiful and untouched landscapes.&nbsp;
The ComCom does say there's room for improvement, but on the whole, the real enemy here is the politician or talking head who tells us by simply bashing Air New Zealand's head into a wall, they can make Kiwis fly on the cheap.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

Early Edition with Ryan Bridge

Ryan Bridge: Why ComCom's not investigating Air New Zealand

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/ee46aa11-f890-4e35-856f-b2d60134dbc5/transcript

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