1 00:00:00,120 --> 00:00:03,080 Speaker 1: So after all of the hand ringing, the complaints, the 2 00:00:03,120 --> 00:00:05,680 Speaker 1: stomping of feet, the Comcom's shooting down, talk of a 3 00:00:05,720 --> 00:00:08,800 Speaker 1: probe and to domestic airfares, Foreign and Co Will of 4 00:00:08,800 --> 00:00:13,200 Speaker 1: course see this as a vindication, a validation that despite 5 00:00:13,240 --> 00:00:17,000 Speaker 1: the headlines and consumer and z's, the market has broken claim. 6 00:00:17,079 --> 00:00:21,000 Speaker 1: In fact, the reality is their costs have gone up, 7 00:00:21,040 --> 00:00:24,160 Speaker 1: and surprise, surprise, it's expensive to run routes with high 8 00:00:24,280 --> 00:00:27,600 Speaker 1: fixed costs to small places with more sheep than people. 9 00:00:28,360 --> 00:00:33,120 Speaker 1: So they conclude doing a market study, which is easy politics. 10 00:00:33,479 --> 00:00:37,440 Speaker 1: It scratches the itch, won't actually achieve anything, and by 11 00:00:37,479 --> 00:00:40,239 Speaker 1: that they mean it won't lead to consumers getting a 12 00:00:40,240 --> 00:00:44,960 Speaker 1: better deal. Refreshing honesty. Could the same refreshing honesty have 13 00:00:45,000 --> 00:00:47,720 Speaker 1: been applied to the claims about banking and supermarkets and 14 00:00:47,760 --> 00:00:50,440 Speaker 1: petrol stations, et cetera, et cetera, et cetera. The list 15 00:00:50,520 --> 00:00:54,480 Speaker 1: goes on, Like most things post COVID, costs have gone up, 16 00:00:54,880 --> 00:00:59,200 Speaker 1: airport landing charges up, air traffic control up, security levees up. 17 00:00:59,520 --> 00:01:03,160 Speaker 1: And when you're in business and you own we own 18 00:01:03,200 --> 00:01:06,400 Speaker 1: this one, remember fifty one percent of it. You recoup 19 00:01:06,480 --> 00:01:09,600 Speaker 1: those costs by putting your own prices up. We don't 20 00:01:09,640 --> 00:01:13,600 Speaker 1: want them subsidizing flights and crashing our business, right, the 21 00:01:13,640 --> 00:01:17,200 Speaker 1: business we own. We sold off the National carrier in 22 00:01:17,280 --> 00:01:20,640 Speaker 1: nineteen eighty nine. We renationalized in two thousand and one 23 00:01:20,680 --> 00:01:23,120 Speaker 1: after Anset went bus that cost us close to a 24 00:01:23,160 --> 00:01:27,319 Speaker 1: billion bucks. Ansets problem was high costs and regulation changes 25 00:01:27,319 --> 00:01:32,000 Speaker 1: when airlines failure gets expensive for tax payers. Now, I 26 00:01:32,000 --> 00:01:34,639 Speaker 1: don't want to defend an airline charging me four hundred 27 00:01:34,720 --> 00:01:37,000 Speaker 1: dollars to fly for forty minutes any more than the 28 00:01:37,040 --> 00:01:40,319 Speaker 1: next guy. But and this is the crux of most 29 00:01:40,319 --> 00:01:43,319 Speaker 1: of the complaints we hear through the media. Short flights, 30 00:01:43,640 --> 00:01:47,040 Speaker 1: regional flights are expensive to run, and people don't use 31 00:01:47,080 --> 00:01:50,200 Speaker 1: them often enough. They use more fuel as a proportion 32 00:01:50,280 --> 00:01:53,600 Speaker 1: of a total flight because of the takeoff and the climb. 33 00:01:53,840 --> 00:01:55,920 Speaker 1: Takes a bit of gas to lift us into the sky, 34 00:01:56,000 --> 00:01:59,200 Speaker 1: especially now we're getting so fat. The cost of fuel 35 00:01:59,320 --> 00:02:01,840 Speaker 1: is a third of the operating costs for Air New Zealand, 36 00:02:01,920 --> 00:02:04,640 Speaker 1: something foreign can't control. That's more the purview of a 37 00:02:04,640 --> 00:02:08,320 Speaker 1: Poutin or a Sultan. Planes spend way too long sitting 38 00:02:08,360 --> 00:02:10,760 Speaker 1: on the ground. Your costs are higher, and you've got 39 00:02:10,760 --> 00:02:13,239 Speaker 1: fewer passengers to spread those costs over on the smaller 40 00:02:13,320 --> 00:02:16,359 Speaker 1: routes using jets, of course, that would be more efficient, 41 00:02:16,400 --> 00:02:18,919 Speaker 1: but again we don't have the people to fill them, 42 00:02:19,280 --> 00:02:21,520 Speaker 1: which is why I said the other day and it's true, 43 00:02:21,560 --> 00:02:25,440 Speaker 1: but doesn't make it palatable. We're a small country. We 44 00:02:25,600 --> 00:02:32,440 Speaker 1: pay a price for sparsely populated, beautiful, untouched landscapes. The 45 00:02:32,520 --> 00:02:35,320 Speaker 1: ComCom does say there's room for improvement, but on the 46 00:02:35,320 --> 00:02:39,400 Speaker 1: whole the real enemy here is the politician or the 47 00:02:39,480 --> 00:02:43,400 Speaker 1: talking head who tells us by simply bashing Air New 48 00:02:43,480 --> 00:02:46,880 Speaker 1: Zealand's head into the wall, they can make Kiwis fly 49 00:02:47,440 --> 00:02:51,560 Speaker 1: on the cheap. For more from Early Edition with Ryan Bridge, 50 00:02:51,639 --> 00:02:55,120 Speaker 1: listen live to News Talk Set B from five am weekdays, 51 00:02:55,360 --> 00:02:57,399 Speaker 1: or follow the podcast on iHeartRadio.