1 00:00:00,120 --> 00:00:02,400 Speaker 1: Jets start cutting twelve percent of its flights or con 2 00:00:02,440 --> 00:00:05,400 Speaker 1: Christ j Chen Wellington's and trans tasmin affected as well. 3 00:00:05,519 --> 00:00:08,000 Speaker 1: We have just over twenty days of jet fuel left 4 00:00:08,119 --> 00:00:10,760 Speaker 1: more shipments on the way. We've told James Meaga, Associate 5 00:00:10,800 --> 00:00:15,400 Speaker 1: Transport Minister Minister, good morning morning, right, So Jetstar won't 6 00:00:15,400 --> 00:00:18,200 Speaker 1: be the last to do this, will day Well, I. 7 00:00:18,320 --> 00:00:21,400 Speaker 2: Are not the first either. So airlines have responded to 8 00:00:21,520 --> 00:00:25,160 Speaker 2: the spock in fuel price and jet fuel price by 9 00:00:25,239 --> 00:00:28,480 Speaker 2: irrationalizing some of their roots and trying to reduce some 10 00:00:28,600 --> 00:00:30,840 Speaker 2: of their costs as well. So start doing what I 11 00:00:30,880 --> 00:00:32,880 Speaker 2: think a lot of normal people are doing, which is 12 00:00:32,960 --> 00:00:36,800 Speaker 2: looking at the price of doing business and just trying 13 00:00:36,840 --> 00:00:39,120 Speaker 2: to make sure that they can maintain their own viability. 14 00:00:39,720 --> 00:00:42,840 Speaker 1: When you talk about the jet fuel stocks, so twenty days, 15 00:00:42,880 --> 00:00:45,240 Speaker 1: that's how much is in country. How certain are we 16 00:00:45,320 --> 00:00:46,400 Speaker 1: have what's to come after it? 17 00:00:47,640 --> 00:00:50,479 Speaker 2: Are pretty certain. So I think the latest figures out 18 00:00:50,560 --> 00:00:55,040 Speaker 2: from NBR that these forty three days are either on 19 00:00:55,280 --> 00:00:58,960 Speaker 2: shore or on way, and we've had no indications that 20 00:00:59,440 --> 00:01:03,480 Speaker 2: will drop significantly over the next week. While we've got 21 00:01:03,920 --> 00:01:06,280 Speaker 2: I think indications of a couple of tankers on route, 22 00:01:06,400 --> 00:01:08,720 Speaker 2: and I know that there was one in tim report 23 00:01:08,840 --> 00:01:13,240 Speaker 2: yesterday loading to help fill up those stocks. So we're 24 00:01:13,280 --> 00:01:15,600 Speaker 2: pretty confident that we've got the levels that are within 25 00:01:15,680 --> 00:01:17,320 Speaker 2: the normal range, but we are keeping an eye on it. 26 00:01:18,840 --> 00:01:21,280 Speaker 1: What is the normal range? Are we even close to 27 00:01:21,440 --> 00:01:24,720 Speaker 1: off the normal range right now? In terms of Ford orders, 28 00:01:25,959 --> 00:01:26,759 Speaker 1: Normally we look. 29 00:01:26,640 --> 00:01:29,280 Speaker 2: At about fifty days, and so we have seen that 30 00:01:29,440 --> 00:01:31,880 Speaker 2: come back a little bit, so we're at about forty 31 00:01:31,959 --> 00:01:35,080 Speaker 2: three at the moment. But there's nothing to indicate that 32 00:01:35,280 --> 00:01:38,240 Speaker 2: the orders that we have had placed around the world 33 00:01:38,400 --> 00:01:40,920 Speaker 2: aren't on the way. We haven't had any signs of disruption, 34 00:01:41,640 --> 00:01:44,600 Speaker 2: but again officials in the NBA are keeping an eye 35 00:01:44,600 --> 00:01:47,280 Speaker 2: on that and reporting those numbers you've read a couple 36 00:01:47,319 --> 00:01:49,400 Speaker 2: of days. I'm trying to be as transferent about those 37 00:01:49,480 --> 00:01:50,640 Speaker 2: numbers as possible as well. 38 00:01:50,880 --> 00:01:53,040 Speaker 1: If you have to ration jet fuel, who gets it first. 39 00:01:54,520 --> 00:01:59,000 Speaker 2: Well, there's been the situation before a couple of times. 40 00:01:59,040 --> 00:02:04,480 Speaker 2: I think the aviation industry, amongst most industries, are actually experienced, 41 00:02:04,480 --> 00:02:06,880 Speaker 2: as there was the fuel issue back in twenty seventeen. 42 00:02:06,920 --> 00:02:09,359 Speaker 2: And then we of course we're COVID and so those 43 00:02:09,639 --> 00:02:12,639 Speaker 2: decisions are still to be made by ministers and it'll 44 00:02:12,680 --> 00:02:15,040 Speaker 2: be a discussion that's had by industry, and I think 45 00:02:15,600 --> 00:02:18,919 Speaker 2: industry understands the challenge at hand and they are just 46 00:02:19,080 --> 00:02:22,239 Speaker 2: I think, wanting to be part of that decision and 47 00:02:22,360 --> 00:02:24,000 Speaker 2: to be able to input into what's the best way 48 00:02:24,000 --> 00:02:24,600 Speaker 2: to around a cape. 49 00:02:24,840 --> 00:02:27,360 Speaker 1: So at this point, you haven't made any decisions about 50 00:02:27,400 --> 00:02:29,000 Speaker 1: who's what the pecking order is. 51 00:02:30,000 --> 00:02:32,359 Speaker 2: No, and I don't think we're at that point yet. 52 00:02:32,840 --> 00:02:34,560 Speaker 2: If you look at other countries around the world, they're 53 00:02:34,560 --> 00:02:37,800 Speaker 2: in a similar situation where there's still a sufficient supply 54 00:02:38,360 --> 00:02:41,480 Speaker 2: around the world. Now, obviously that's something that everyone's keeping 55 00:02:41,480 --> 00:02:43,160 Speaker 2: an eye on, and when it comes to the point 56 00:02:43,200 --> 00:02:44,840 Speaker 2: where it looks like it's tightening up, we will have 57 00:02:44,919 --> 00:02:46,799 Speaker 2: to make decisions. But we're not at that point yet, 58 00:02:47,520 --> 00:02:49,520 Speaker 2: but we will be led by industry as to how 59 00:02:49,600 --> 00:02:51,320 Speaker 2: they think the best way The other cap would be. 60 00:02:51,600 --> 00:02:54,000 Speaker 1: Minister, if I'm looking at flying or my family's looking 61 00:02:54,040 --> 00:02:55,919 Speaker 1: at flying in the next couple of months, how much 62 00:02:55,960 --> 00:02:58,120 Speaker 1: extra I mean, if you had advice from officials, and 63 00:02:58,240 --> 00:03:01,120 Speaker 1: how much extra their price increases going to be. 64 00:03:03,400 --> 00:03:07,639 Speaker 2: No, no specifics because it will just depend on how 65 00:03:07,720 --> 00:03:12,519 Speaker 2: the conflict unfolds. We know that airlines are doing a 66 00:03:12,600 --> 00:03:15,520 Speaker 2: couple of things. One is that they're putting specific surcharges 67 00:03:16,160 --> 00:03:18,519 Speaker 2: to cover the price of fuel. The other thing is 68 00:03:18,600 --> 00:03:20,600 Speaker 2: that they are baking it into the price of their tickets, 69 00:03:21,040 --> 00:03:23,600 Speaker 2: so it is difficult to tell. I mean, for airlines, 70 00:03:23,600 --> 00:03:25,520 Speaker 2: I think they would admit that there's only so much 71 00:03:25,560 --> 00:03:27,639 Speaker 2: that they can charge before it will damp and demand 72 00:03:28,080 --> 00:03:30,919 Speaker 2: and people will just choose other alternatives to get around. 73 00:03:31,639 --> 00:03:33,760 Speaker 2: And we understand that's tough, and that's why we've put 74 00:03:33,800 --> 00:03:38,560 Speaker 2: out this targeted cost of living payment to support low 75 00:03:38,960 --> 00:03:42,440 Speaker 2: middle income working families. But at this point there's no 76 00:03:42,640 --> 00:03:45,240 Speaker 2: real way to tell what the specific price increases might 77 00:03:45,360 --> 00:03:45,800 Speaker 2: or might not be. 78 00:03:46,240 --> 00:03:47,760 Speaker 1: Are you ware of any other cuts coming? 79 00:03:49,880 --> 00:03:51,520 Speaker 2: No, I'm not really any other cuts coming. 80 00:03:51,720 --> 00:03:54,560 Speaker 1: What about the CIA fees and the regional air loans. 81 00:03:54,640 --> 00:03:56,240 Speaker 1: I spoke to ear Chathams a couple of weeks ago. 82 00:03:56,280 --> 00:03:57,600 Speaker 1: They hadn't got a send of it yet. Are you 83 00:03:57,640 --> 00:03:59,840 Speaker 1: looking at fast tracking any of that money or cutting 84 00:04:00,000 --> 00:04:00,720 Speaker 1: any of the fees? 85 00:04:02,040 --> 00:04:04,560 Speaker 2: That wouldn't be my preferred option. We had that situation 86 00:04:04,720 --> 00:04:09,280 Speaker 2: during COVID where CIA levies were suppressed or held low 87 00:04:09,360 --> 00:04:11,760 Speaker 2: for quite a while. What that does is that eats 88 00:04:11,800 --> 00:04:14,760 Speaker 2: into the base of all the revenue of the regulator, 89 00:04:14,800 --> 00:04:17,880 Speaker 2: and we still have to actually fund that regulator in 90 00:04:18,000 --> 00:04:21,800 Speaker 2: order to keep a safe aviation system. And you see 91 00:04:21,839 --> 00:04:23,560 Speaker 2: what happens in a couple of years down the track. 92 00:04:24,080 --> 00:04:26,400 Speaker 2: Those levees have to be restored and the price is 93 00:04:26,440 --> 00:04:28,680 Speaker 2: spike and that puts more pressure on regional airlines. So 94 00:04:29,200 --> 00:04:31,160 Speaker 2: our preference at this stage is to look at the 95 00:04:31,279 --> 00:04:34,560 Speaker 2: Regional Connectivity Fund. We've got thirty million dollar fund, make 96 00:04:34,640 --> 00:04:38,040 Speaker 2: some decisions around allocating that to the airlines who have applied, 97 00:04:38,120 --> 00:04:41,559 Speaker 2: including chatams, and see if we can stabilize the regional 98 00:04:41,600 --> 00:04:44,239 Speaker 2: airline sector by providing them a bit of direct relief. 99 00:04:44,279 --> 00:04:46,440 Speaker 1: That way, all right, go well, James, thank you, James, 100 00:04:46,520 --> 00:04:47,839 Speaker 1: Mega Associate Transport. 101 00:04:48,720 --> 00:04:50,880 Speaker 2: For more from early edition with Ryan Bridge. 102 00:04:51,080 --> 00:04:54,479 Speaker 1: Listen live to News Talks it be from five am weekdays, 103 00:04:54,760 --> 00:04:56,800 Speaker 1: or follow the podcast on iHeartRadio.