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Speaker 1: Now only days after cutting the Envicargole to Wellington flight

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Speaker 1: in New Zealand has reduced capacity on four more routes.

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Speaker 1: One flight from Queenstown to christ Huge will move to

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Speaker 1: a smaller plane, Deneanan to Wellington will move to a

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Speaker 1: smaller plane. Christ Chuge New Plymouth will lose three flights

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Speaker 1: and blend them to Wellington will have a flight moved

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Speaker 1: later in the day. In New Zealand's domestic general manager

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Speaker 1: Scott Cars with us. Morning Scott, Good morning, hell, what

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Speaker 1: is going on with you guys?

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Speaker 2: Well, this is just normal practice for us and fairly

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Speaker 2: difficult circumstances, to be honest, I know we've got a

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Speaker 2: lot of care and planning into ensuring our domestic network

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Speaker 2: services our communities across the country effectively, and as a result,

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Speaker 2: we regularly review our schedule and make some adjustments here

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Speaker 2: in there to make sure it's for purpose. In this case,

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Speaker 2: you know, we've got a lot of cost increases and

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Speaker 2: demand softening missions with aircraft, and so we're having to

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Speaker 2: right size some markets to make sure we continue to

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Speaker 2: deliver a sustainable service to those communities.

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Speaker 1: Okay, mean, obviously some of this is about the routes

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Speaker 1: not making enough money. But has have the engine problems

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Speaker 1: got anything to do with it as well?

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Speaker 2: Yeah? It does. I mean these engine problems cascade down

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Speaker 2: through our fleets. So if we have a problem with

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Speaker 2: our A three twenty narrow body fleet, sometimes we have

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Speaker 2: to use atrs to fly those services, and that means

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Speaker 2: we've got to find those aircraft from other parts. So

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Speaker 2: it is it's a problem that spreads across the entire

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Speaker 2: business that we're trying to resolve.

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Speaker 1: Here, you're doing this only next year, right, this is

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Speaker 1: stuff that kicks in in February, January, February or so on.

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Speaker 1: Does that mean can I read into that that you

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Speaker 1: were expecting next year to be even tougher.

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Speaker 2: No, this is really about planning. It's about making sure

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Speaker 2: we get these things into market as soon as we can,

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Speaker 2: and also practically just sort of understanding we have people

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Speaker 2: booked on those services, so you know, changing people's travel

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Speaker 2: plans too early to be highly disruptive, and so you know,

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Speaker 2: these are good, good decisions that we have to make economically,

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Speaker 2: but we are delaying those changes until after the school

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Speaker 2: holiday break just to make sure that we actually aren't

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Speaker 2: disrupting too many people, and we get all our people

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Speaker 2: at pilot's crew, etcetera in the right places.

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Speaker 1: Is what's the end of it? Or is there more

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Speaker 1: to come?

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Speaker 2: Look, I wish I had a crystal ball that could

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Speaker 2: predict the future. Hither it is. You know, these are

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Speaker 2: trying times. Costs up, as I mentioned before, demands down

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Speaker 2: and you'll be well aware of things like government travels

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Speaker 2: down about thirty percent across our network. Pay If that

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Speaker 2: continues indefinitely, then we might have to make some more changes.

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Speaker 2: I don't know. But then again, if it bounces back,

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Speaker 2: hopefully we can get more aircraft in the year will

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Speaker 2: be You know, we've got a strong commitment to growing

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Speaker 2: our domestic business that has not changed in a long time.

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Speaker 2: We do understand that domestic flying, connecting New Zealanders to

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Speaker 2: each other and the world is part of who we

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Speaker 2: are as a brand, and we want to do that,

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Speaker 2: so we want to continue to grow. It's just we're

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Speaker 2: going through a bit of a lull here, as I say,

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Speaker 2: where costs and demand are not moving in the right

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Speaker 2: direction for us.

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Speaker 1: Scott, thanks very much, best of luck with everything at

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Speaker 1: Scott car In, New Zealand's General manager of domestic For

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