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Speaker 1: Getting on a plane getting a bit harder. A Zebik

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Speaker 1: Fury bites into that jet fuel access jet Star's gone

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Speaker 1: and can twelve percent of their services in New Zealand's

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Speaker 1: already cut flights. Of course, Billy Moore is the chief

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Speaker 1: executive of the Airport's association and is with us, Billy.

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Speaker 2: Good morning, good morning.

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Speaker 1: Do you reckon? There's more weathers came from.

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Speaker 2: Oh, look, we would expect if the challenges go on

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Speaker 2: for a bit longer, there might be some rolling cuts

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Speaker 2: like this, but hopefully not at more of a scale

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Speaker 2: that we've seen already.

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Speaker 1: Does it actually affect me or is it more about

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Speaker 1: the airline's bottom line? I mean, if I can still

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Speaker 1: get there short of having a choice of three, I

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Speaker 1: now have a choice of two that I don't care.

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Speaker 2: Do I Well, it will depend on frequency and schedule.

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Speaker 2: At the moment, New Zealand already doesn't have the flight

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Speaker 2: capacity that it needs for the economy, so these cuts

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Speaker 2: do have an effect across the country in terms of

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Speaker 2: making things a bit harder, making business connectivity a bit harder.

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Speaker 2: They're probably sensible and pretty reasonable reactions from the airlines

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Speaker 2: at the moment, but it is a price issue right now.

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Speaker 2: Not a supply issue with feel right.

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Speaker 1: So when you say this is what I'm trying to

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Speaker 1: work out, what could they bump the prices and carry

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Speaker 1: on with the flights or are they running to too

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Speaker 1: big a risk on demand or is that the access

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Speaker 1: to jet fuel they're worried about.

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Speaker 2: I think they'll be I think strategically about the path

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Speaker 2: a head. So yes, they could sump up the price,

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Speaker 2: and that is happening. We're seeing some fuel charges from

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Speaker 2: your lines as well, which is a reasonable thing to do.

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Speaker 2: But I think what they're doing is quite strategically looking

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Speaker 2: at where they can consolid flights, where there are flights

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Speaker 2: that could be merged into one, things like that, So

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Speaker 2: we can't really criticize that.

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Speaker 1: Are we seeing this all over the world? I mean,

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Speaker 1: are domestic Ish carriers in other parts of the world

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Speaker 1: doing the same sort of cutbacks, I know, United for example,

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Speaker 1: as cutting back Stateside.

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Speaker 2: Yeah, not quite as much as we've seen here. I'd

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Speaker 2: say it has been a bit of a first mover

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Speaker 2: over here, and that might just be because there's a

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Speaker 2: bit less competition in New Zealand, so these kind of

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Speaker 2: reactions can be a bit easier to do. But Look,

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Speaker 2: it will happen. There will be this kind of trend overall.

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Speaker 2: And look, so far, it's good to see, for instance,

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Speaker 2: in New Zealand protecting some of those small reasonal routes. Look,

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Speaker 2: that's the key question is how long is it's going

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Speaker 2: to last? And we've just got to hope.

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Speaker 1: Nobody knows the first move of things? Interesting? Are we

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Speaker 1: panicking a bit?

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Speaker 2: Look? I don't think so. I mean these are these

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Speaker 2: are for instance, New Zealand cuts about four percent of

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Speaker 2: their domestic network. This is Jetstar twelve percent.

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Speaker 1: And yeah, but they haven't got much a network.

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Speaker 2: That's right, You're exactly right. And they did boost the

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Speaker 2: network by twenty percent already in the past twelve months.

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Speaker 2: So it is it isn't so bad a story on

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Speaker 2: that side. But look, the demand is there. I would

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Speaker 2: be very optimistic that the capacity will bounce back.

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Speaker 1: Is if jet fuel gets crunchy, what happens on the

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Speaker 1: flight that comes from London? Is there an international agreement

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Speaker 1: that we've got to refuel them, or do we tell

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Speaker 1: them before they get here that we can't or won't

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Speaker 1: or whatever, and therefore they never come in the first place.

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Speaker 2: Look, there are some really well worn processes for how

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Speaker 2: aviations deals with these kind of issues. There are few

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Speaker 2: allocation processes that help us look at what a slightly

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Speaker 2: smaller shoe dole might look like. So people can be

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Speaker 2: very confident that if we did get to that stage,

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Speaker 2: and we're not there yet, if we did get to

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Speaker 2: that stage, it would be an organized and predictable process,

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Speaker 2: and that's what we're working with government to plan ahead

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Speaker 2: on now, just in case we get to get to

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Speaker 2: that point.

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Speaker 1: Okay, Billy, appreciate it very much. Billy Moore, who's the

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Speaker 1: chief executive of New Zealand Airport's Association. For more from

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Speaker 1: the Mic Asking Breakfast, listen live to news talks that'd

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