1 00:00:00,160 --> 00:00:03,800 Speaker 1: Prices for domestic flights rose more than ten percent in November, 2 00:00:03,800 --> 00:00:06,560 Speaker 1: according to stats nz IT. It's the highest increase since 3 00:00:06,640 --> 00:00:10,119 Speaker 1: July last year. In mid November, there were reports of 4 00:00:10,160 --> 00:00:13,520 Speaker 1: flights nearly tripling in price due to demand from people 5 00:00:13,560 --> 00:00:17,880 Speaker 1: flying to euguestic Coldplay. Aviation commentator Peter Clark is with 6 00:00:17,920 --> 00:00:21,239 Speaker 1: me this afternoon. Try and break this down. PETA good afternoon, Yeah, 7 00:00:21,239 --> 00:00:23,880 Speaker 1: a good afternoon to you. Should we have to accept well, 8 00:00:23,920 --> 00:00:27,240 Speaker 1: first of all, do you accept that this November increase 9 00:00:27,400 --> 00:00:31,000 Speaker 1: is down to events like Coldplay and other concerts around 10 00:00:31,000 --> 00:00:31,479 Speaker 1: the country. 11 00:00:32,880 --> 00:00:39,640 Speaker 2: Well, those peak demands to increase feares momentarily, really over 12 00:00:39,760 --> 00:00:42,320 Speaker 2: a few days, So they're just spikes in the fair 13 00:00:42,400 --> 00:00:45,960 Speaker 2: ratio that we see on a day to day basis. 14 00:00:46,240 --> 00:00:50,879 Speaker 2: But the fears do rise dramatically when the algorithms portray 15 00:00:51,000 --> 00:00:53,640 Speaker 2: that there is going to be a demand for certain 16 00:00:53,720 --> 00:00:55,240 Speaker 2: routes at certain times. 17 00:00:55,560 --> 00:00:58,280 Speaker 1: Is this surprising? This sounds to me like basic supply 18 00:00:58,320 --> 00:00:58,800 Speaker 1: and demand. 19 00:01:00,080 --> 00:01:02,840 Speaker 2: It is supply and demand, But then I think sometimes 20 00:01:02,880 --> 00:01:06,360 Speaker 2: the airline doesn't have the supply to offer, so they 21 00:01:06,400 --> 00:01:10,280 Speaker 2: capitalize on filling every seat at the last minute and 22 00:01:10,480 --> 00:01:15,000 Speaker 2: know that they can demand a fairly high fear. You 23 00:01:15,000 --> 00:01:17,600 Speaker 2: can get your graber seats earlier on, but you can't 24 00:01:17,680 --> 00:01:20,960 Speaker 2: plan in the future six to eight months out on 25 00:01:21,080 --> 00:01:26,040 Speaker 2: a fear that you might need and a demand for 26 00:01:26,160 --> 00:01:28,320 Speaker 2: a rugby game or a game or a concert. 27 00:01:29,360 --> 00:01:32,040 Speaker 1: No, But I mean, how do you get around this? 28 00:01:32,600 --> 00:01:34,680 Speaker 1: What is the way around this? The airline itself was 29 00:01:34,680 --> 00:01:37,839 Speaker 1: said basically, yes, there were spikes in the month because 30 00:01:37,959 --> 00:01:40,880 Speaker 1: of things like coldplay, but also there were other major 31 00:01:40,920 --> 00:01:43,920 Speaker 1: events on. There were marathons here, there and everywhere, and 32 00:01:44,080 --> 00:01:47,120 Speaker 1: those lower, those cheaper fares get booked up quickly and 33 00:01:47,200 --> 00:01:48,840 Speaker 1: then everyone else is on the higher ones. 34 00:01:50,120 --> 00:01:51,560 Speaker 2: Well that's the way it is going to be. But 35 00:01:51,640 --> 00:01:54,640 Speaker 2: I do think sometimes I feel our high feares are 36 00:01:55,040 --> 00:01:57,720 Speaker 2: definitely far too high. I think the airline's got to 37 00:01:57,840 --> 00:02:00,720 Speaker 2: realize that it is the only monopoly player on the 38 00:02:00,800 --> 00:02:06,080 Speaker 2: domestic markets, especially to the small places Gisbon, Cookoe's, follow 39 00:02:06,200 --> 00:02:10,079 Speaker 2: Rays and all and Tyrannus, you know, and we need 40 00:02:10,200 --> 00:02:15,200 Speaker 2: those airlines to offer frequency and capacity and not overcharged 41 00:02:15,360 --> 00:02:18,880 Speaker 2: because it's the demand is there for those flights. 42 00:02:19,800 --> 00:02:22,040 Speaker 1: They made one hundred and forty six million dollars net 43 00:02:22,040 --> 00:02:24,639 Speaker 1: profit after tax to June, which was down drastically on 44 00:02:24,760 --> 00:02:27,600 Speaker 1: what they hoped to make. Is that a super profit? 45 00:02:28,160 --> 00:02:29,880 Speaker 1: How does that compare to other countries? 46 00:02:31,080 --> 00:02:33,520 Speaker 2: Well, I don't know whether you can compare it because 47 00:02:33,760 --> 00:02:37,880 Speaker 2: we are owned. The airline is actually owned basically by 48 00:02:38,120 --> 00:02:42,440 Speaker 2: the shareholders, which is the government and private shareholders. So 49 00:02:43,400 --> 00:02:47,280 Speaker 2: the attitude of the the airline is we have to 50 00:02:47,400 --> 00:02:50,720 Speaker 2: return a profit to the shareholders. But how much should 51 00:02:50,800 --> 00:02:54,120 Speaker 2: that share that profit be or should we be looking 52 00:02:54,200 --> 00:02:59,560 Speaker 2: at freet replacements, engineering costs and other things that could 53 00:02:59,600 --> 00:03:04,519 Speaker 2: be Stop spending all this money on ecoplanes at the moment. 54 00:03:04,639 --> 00:03:07,720 Speaker 2: I know that's very important in our future. But at 55 00:03:07,800 --> 00:03:09,919 Speaker 2: the moment, we need to run the airline for the 56 00:03:10,000 --> 00:03:12,160 Speaker 2: people of this country. And I think that is the 57 00:03:12,280 --> 00:03:15,680 Speaker 2: number one thing. And sometimes I think that's been overlooked. 58 00:03:16,440 --> 00:03:19,280 Speaker 1: You think, are we going go go broke? Do you reckon? 59 00:03:19,680 --> 00:03:21,480 Speaker 1: I mean, is there too much? Hey look at me, 60 00:03:21,680 --> 00:03:23,919 Speaker 1: I can fly my plane on vegetable oil and not 61 00:03:24,120 --> 00:03:26,239 Speaker 1: enough I can actually get you there on time. 62 00:03:27,560 --> 00:03:30,280 Speaker 2: Well, I'm starting to feel that with the National Airline 63 00:03:30,800 --> 00:03:33,760 Speaker 2: as it is a monopoly airline. It's as I said, 64 00:03:34,360 --> 00:03:38,040 Speaker 2: and I feel sometimes that I think that in New 65 00:03:38,160 --> 00:03:41,760 Speaker 2: Zealand needs to actually look at what their key thing 66 00:03:41,960 --> 00:03:46,000 Speaker 2: is it's to transport people around New Zealand. This is 67 00:03:46,080 --> 00:03:50,720 Speaker 2: domestically at a fair price, and I think spiking prices 68 00:03:50,920 --> 00:03:55,200 Speaker 2: to capitalize on those demands to me is unfair. Reduce 69 00:03:55,320 --> 00:03:58,920 Speaker 2: the profit margin and start looking at our future as 70 00:03:59,000 --> 00:04:02,760 Speaker 2: an airline to offer frequency and capacity to the people 71 00:04:02,840 --> 00:04:03,440 Speaker 2: of the country. 72 00:04:03,800 --> 00:04:06,360 Speaker 1: If you don't make a profit, how do you invest 73 00:04:06,440 --> 00:04:07,240 Speaker 1: in new planes? 74 00:04:08,280 --> 00:04:11,040 Speaker 2: Well, you've got a plan for new planes. They become 75 00:04:11,120 --> 00:04:16,160 Speaker 2: a cost in your planning, so that profit would be 76 00:04:16,320 --> 00:04:20,159 Speaker 2: distributed through planning over several years. A plane doesn't come 77 00:04:20,520 --> 00:04:22,920 Speaker 2: by today, get it tomorrow. You plan it over a 78 00:04:23,040 --> 00:04:26,440 Speaker 2: five year period. And I think our domestic market at 79 00:04:26,440 --> 00:04:29,120 Speaker 2: the moment some of our planes are up seventeen years 80 00:04:29,160 --> 00:04:32,200 Speaker 2: old on our domestic market and we are seeing a 81 00:04:32,279 --> 00:04:35,960 Speaker 2: lot more breakdowns and a lot more costs running the 82 00:04:36,080 --> 00:04:40,160 Speaker 2: domestic airline. To me, sometimes we need to get past 83 00:04:40,240 --> 00:04:43,159 Speaker 2: that also, and we should have had earlier fleet planning. 84 00:04:44,200 --> 00:04:47,160 Speaker 1: Thanks so much for your time, Peter Peter Clark, aviation commentator, 85 00:04:47,200 --> 00:04:50,080 Speaker 1: if you're just joining us the flights Domestic flights rose 86 00:04:50,400 --> 00:04:53,320 Speaker 1: ten point eight percent in November, according to stats in Zed, 87 00:04:53,360 --> 00:04:55,320 Speaker 1: this off the back of a very busy month for 88 00:04:55,560 --> 00:04:59,520 Speaker 1: some concerts and some marathons, etc. Which push demand up. 89 00:05:00,000 --> 00:05:01,839 Speaker 1: But also let's not forget the supply side. They've got 90 00:05:01,880 --> 00:05:04,480 Speaker 1: their Pratt and Whitney engines that have got maintenance issues. 91 00:05:04,520 --> 00:05:06,720 Speaker 1: Six of the Airbus NEOs out of action at any 92 00:05:06,760 --> 00:05:09,520 Speaker 1: one time. Apparently they've got problems with the Dreamliners. So 93 00:05:09,600 --> 00:05:12,400 Speaker 1: it's almost a perfect storm up in the skies at 94 00:05:12,400 --> 00:05:15,120 Speaker 1: the moment. Love to know your thoughts. Nine two nine 95 00:05:15,200 --> 00:05:16,640 Speaker 1: two is the number to text. I had to book 96 00:05:16,640 --> 00:05:20,120 Speaker 1: a flight yesterday to fly yesterday at the very last 97 00:05:20,160 --> 00:05:22,560 Speaker 1: minute for a personal thing just same day there and 98 00:05:22,640 --> 00:05:27,400 Speaker 1: back Auckland Wellington five hundred bucks and one of those 99 00:05:27,440 --> 00:05:29,520 Speaker 1: flights was jet Star. I think the jet Star one 100 00:05:29,600 --> 00:05:33,680 Speaker 1: was about one hundred and forty. And yes, that's very 101 00:05:33,880 --> 00:05:36,960 Speaker 1: very expensive, but I had to do it. I don't 102 00:05:37,000 --> 00:05:40,400 Speaker 1: think that's that's unreasonable for a same day booking. 103 00:05:40,880 --> 00:05:44,719 Speaker 2: Do you for more from Heather Duplessy Allen Drive, Listen 104 00:05:44,839 --> 00:05:45,840 Speaker 2: live to news Talks. 105 00:05:45,880 --> 00:05:49,000 Speaker 1: It'd be from four pm weekdays, or follow the podcast 106 00:05:49,160 --> 00:05:50,120 Speaker 1: on iHeartRadio.