Paul Phelan/CAIRNS
LOSSES AT KIWI Travel International Airlines, the New Zealand low-cost carrier, have forced it to cease operations, while two Australian airlines have also run into financial difficulties.
Kiwi Travel went into voluntary liquidation with losses estimated at NZ$3 million ($2 million) over the past three months. The carrier had been operating up to 30 scheduled trans-Tasman services weekly, from the New Zealand regional centres of Hamilton and Invercargill to Brisbane, Perth (Western Australia) and Sydney, as well as from Christchurch to Sydney.
Following a legal action in which Singapore-based aircraft lessor Region Air was ordered to restore services to Kiwi, air-traffic-services provider AirServices Australia took court action to ground Kiwi on 6 September because of unpaid charges.
About 4,000 passengers were stranded on either side of the Tasman, with a further 6,000 holding unused tickets. Air New Zealand and Qantas are repatriating stranded passengers on a space-available basis for A$150 ($120) each.
Meanwhile, Australian start-up carrier Pacific Transair is in trouble, with an application to wind the company up because of unpaid leases on buildings. Pacific Transair, which had introduced its first Boeing 737-200 into Australia, struck delays in obtaining an air operator's certificate, and had leased the aircraft in the Philippines while awaiting resolution.
Separately, Hazelton Airlines is being seen as a potential take-over target, following the posting of A$2.5 million net loss for 1995-6, attributed to a A$5.2 million write-down on the value of five aircraft.
The New South Wales regional carrier reported a 5.9% increase in operating revenue to A$57.7 million, while passenger numbers rose by 6.6%, to 392,000. The airline operates a fleet of 12 aircraft, including Fairchild Metro 23s and Saab 340s.
Qantas and Ansett are reported to be eyeing the regional for possible acquisition as they review the growing cost of operating regional airlines in their own right.
Western Australia-based charter carrier Skippers Aviation acquired 19.9% of Hazelton earlier this year, including Rothschild Australia's 17.3% stake, for A$3.2 million. The purchase makes Skippers the second-biggest shareholder in the carrier.
Source: Flight International
