Andrew Crawford: Sounds Air CEO on the lack of investment in regional airlines, dropping services

Questions are being raised as to why taxpayer money backs trains but not planes, as more regional flight routes are axed.  

Operator Sounds Air is dropping its Blenheim to Christchurch and Christchurch to Wanaka services from September, with 10 jobs lost. 

Despite good passenger numbers, the decision is driven by unsustainable costs, so it is having to sell part of its fleet. 

CEO Andrew Crawford told Mike Hosking the money spent on the train from Hamilton to Auckland would cover regional aviation in a heartbeat.  

He says the Government's happy to put money into trains, roads, and ferries but nothing towards regional connectivity.  

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Episode Transcript

Speaker 1 (00:00):
A reminder that flying in this country can be hard work.
Sounds there are selling some of their planes and acting
Readsmond Blendham Christ you to Wanaka as later this year.
Andrew Crawford's the CEO of Sounds Er and as with us. Andrew,
very good morning to you, very well. Indeed, thank you,
just for clarification's sake, and not to insult you remotely.
You're a good business model, right. This is not about you.
This is about the economy, punters, numbers, et cetera. In

(00:22):
other words, you're not a dodgy operator, not that.

Speaker 2 (00:25):
I'm aware of. It's not about punters and numbers. There's
plenty of people flying that that's not the issue and
say their numbers have been the best they've ever been.
The issue is the cost, the costs since COVID out of.

Speaker 1 (00:36):
Control and that literally yeah, but that's my point. That's
why I'm asking, because everyone bangs on about Air New
Zealand going, oh, they're ripoff merchants. And it's what we're
learning is flying regionally in New Zealand is hard work, very.

Speaker 2 (00:50):
Very and I've actually got a bit of defense for
in New Zealand. And then they've got some problems, and
we've got the same problems, just on a smaller scale.
And it's it's very, very difficult, and at some point
you've just got to say, no more is.

Speaker 1 (01:02):
Doing something about your civil aviation bill is three hundred
thousand dollars a year. You're a small operator, and suddenly
it's three hundred thousand dollars. Who's doing something about that?

Speaker 2 (01:13):
No, it's not three hundred, it's gone up three hundred.
It's gone up one hundred and forty five percent. That's
the increase. I don't know. I find it absolutely astounding
that the Civil Aviation can give themselves one hundred and
forty five percent pay rise and it's approved by cabinet,
and that's just supposed to be imposed on the traveling public.
It's staggering.

Speaker 1 (01:33):
It's no wonder, it's difficult. Are you one of the
airlines involved in some councils around the country? There was
one I can't remember who it was that went to
a council for a little bit of help on a route.
Do you involve yourself in those?

Speaker 2 (01:44):
No, but we've certainly we haven't had any loans from councils,
but we've certainly had support. You know from the airport
companies Malborough and Willington have been hugely beneficial to us
in support and the same as christ Church that they
get that regional aviation is critical of this country. And
you know in times of crisis, and it's happened in
the past, they come to smaller airlines like US, Barrier

(02:04):
Chathams and go. You know, you've got to do something
to help the roads. I mean the ko Kour Earth
Quick as one example. But when it's gone, it's gone,
like and it's a sad day that these routes are gone.
You know, blendin to christ Church, cross Church to Wanica
are big healthcare routes and they're going to go.

Speaker 1 (02:19):
It's just well, James meag is apparently onto it is
he deser Have you talked to him, yes? And what's he.

Speaker 2 (02:26):
Doing to visit us? And well, we haven't seen anything.
We've been talking to government for six years.

Speaker 1 (02:30):
It's no more, no more, because we got the problem.
I mean, I'm a sort of a libertarian and I'm
one of those people who goes, look, if you can't
make a business work, you can't make a business work.
And I'm not sure we should be running a social
welfare agency for airlines. But connectivity is critical and I
suppose it's it's for the wider good, isn't it.

Speaker 2 (02:50):
Listen, I'm with you. Why shouldn't the text they be
supporting airlines? Well, because of those reasons. We support trains,
we support roads. How much has been spent on that
train from Hamilton to walk that would cover regional aviation
and a heartbeat. But you know they're happy to put
money into roads, they're happy to put money into the ferries,
they're happy to put money into New Zealand when required.

(03:12):
That the regional connectivity nothing And hey, I'm with you.
Maybe that's just the answer and we've just got to
move on and get over it.

Speaker 1 (03:18):
All right, Well, I wish you were with itm I
appreciate it very much. Andrew Crawford, who's the soundser CEO.
And James, I'm going to save regional New Zealand. Mega
was standing mine for him. Katie jumped on a plane
the other day, just once again to defend in New Zealand.
I can't remember what day it was, but let's say
it was Thursday. It was Wednesday or Thursday. She jumped
on a plane and bought a ticket to fly on

(03:40):
Sunday and she got a Friday nine Bucks. I thought
that's not bad going as it. For more from the
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