Kiwijet
Kiwijet logo
IATA ICAO Callsign
- - -
FoundedMay 2007
Commenced operationsNever commenced operations
HeadquartersNew Zealand

Kiwijet was a proposed and ultimately failed low-cost airline planned for New Zealand. It intended to be "New Zealand’s first all-jet regional airline,"[1] serving seven cities with Avro RJ-100s.[2]

History

The proposed airline, announced in May 2007,[3] had plans to launch in November 2008.[4][5][6]

Kiwijet's stated plans changed considerably after its initial announcement. It initially planned to operate two or more Boeing 737 aircraft on routes from Auckland to Christchurch, Dunedin and Invercargill at fares as low as $150.[7] The airline has been accused of using information leaked by Air New Zealand employees to gain a business advantage.[8] The company's launch was delayed by its bid to buy Jetconnect, the local subsidiary of Qantas.[9]

In June 2007, Kiwijet issued a press release stating the deal had fallen through.[10][11] Kiwijet stated that it would proceed with "plan B", which would see Embraer ERJ 145 aircraft operating between nine cities, providing a feeder service to foreign airlines without a New Zealand partner.[11] More details of this plan were released in July, when Kiwijet announced the choice of Christchurch as a hub city, confirmed its plan to use of Embraer ERJ 145 aircraft, and changed one planned destination.[5][12] In August, Kiwijet said that it was about to begin hiring chief operational staff, and that it was aiming to have seven aircraft at time of launch.[1] In September however, a further press release announced that due to difficulties sourcing, certifying, and maintaining its desired ERJ 145 variant in New Zealand, the airline would instead aim to launch with four Avro RJ-100 aircraft, serving seven cities.[2][13]

In December 2007, Kiwijet said it would open an office in February 2008 and was looking to commence flights by the end of 2008.[14] In February 2008 the company announced it would not begin operations until February 2009. It said it was negotiating with another airline to provide "feeder traffic."[15] Soaring aviation fuel prices during 2008 saw a decision to delay launching services until March 2009,[16][17] and then indefinitely when the original backers pulled out after the severe credit crisis hit in late 2008. In October 2008 directors had resurrected the airline—following stronger backing—as a small two-aircraft (BAe 146QT type) freight airline to begin running early in 2009 as a prelude to opening passenger services later that year, citing the sudden plunge in jet fuel prices and a stronger US dollar to NZ dollar rising well above projections forecast in early 2008. Freight flights would serve as route surveys. However the global economic meltdown at the start of 2009 buried any start date and nothing has been heard from this airline since, its directors returning to the US.

Footnote

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The Kiwijet Airline Company finally ceased its plans after a joint venture with Paul Stoddert's Ozjet fell through, and Ozjet withdrew plans to launch services from Palmerston North in October 2008. By that time the global economic collapse was in full gear with no real hope of securing financing.

See also

References

  1. ^ a b "Clarification of current status". Scoop. 3 August 2007. Retrieved 2 September 2007.
  2. ^ a b "Kiwijet Airline Announces Planned Changes". Scoop. 11 September 2007. Retrieved 14 September 2007.
  3. ^ "First True Low Cost Carrier in New Zealand". Scoop. 2 May 2007. Retrieved 4 August 2007.
  4. ^ ""Wait and see" approach to domestic operations". Scoop.co.nz. 2 April 2008. Retrieved 28 February 2013. We believe that a much better economic picture will be visible in the fourth quarter of this year as the global economy awaits the result of the US elections
  5. ^ a b "Kiwijet Alive And Well". Scoop. 25 July 2007. Retrieved 2 September 2007.
  6. ^ "Kiwijet aims for $85.6m in 45 days". New Zealand Herald. 4 August 2007. Retrieved 4 August 2007.
  7. ^ "Air NZ plans budget airline". Brisbane Times. 7 May 2007. Retrieved 20 May 2007.
  8. ^ "Race to set up cut price airline". One News. 4 May 2007. Retrieved 20 May 2007.
  9. ^ "Kiwijet launch date delayed". 26 February 2008. [...] company is currently in confidential talks with an Australian carrier who asked the launch date be postponed so timetables can be co-ordinated.
  10. ^ "Airports still in the dark over Kiwijet plans". 31 July 2007. Kiwijet said it had tried to acquire Qantas' Jetconnect operation in New Zealand but that proposal was turned down last month.
  11. ^ a b "Proposal to Acquire NZ Jetconnect turned down". Scoop. 19 June 2007. Retrieved 2 September 2007.
  12. ^ Agent Anna (31 July 2007). "Kiwijet to be based in Chch - Business News". TVNZ. Retrieved 28 February 2013. [...] Patrick Weil says they are considering a fleet of Embraer ER-J 145 jets [...]
  13. ^ David Stone (5 October 2007). "Would-be budget flyer Kiwijet keeps dream alive with Plan C". [...] Kiwijet has announced a Plan C, which would see it buy four British Aerospace (BAE) RJ-100 jet aircraft - an updated version of the planes that were previously flown by Ansett New Zealand - and begin flying domestic services late next year.
  14. ^ "Domestic airline to open head office in Christchurch". New Zealand Herald. 19 December 2007. Retrieved 28 February 2013. The proposed regional airline has been plagued by set-backs but will open its Christchurch head office in February with eight staff. It hopes to be flying by the end of next year.
  15. ^ "Kiwijet's NZ launch pushed back until next February". Otago Daily Times Online News. 15 February 2008. Retrieved 28 February 2013. [...] said this week the launch had now been delayed until next February. [...] The company said it was in negotiations with a fully scheduled international carrier. Kiwijet needed a partner airline to provide feeder traffic to and from the domestic trunk, and transtasman sectors.
  16. ^ Steve Hepburn (31 May 2008). "Kiwijet warns plans may be abandoned". Otago Daily Times Online News. Retrieved 28 February 2013. Kiwijet had planned to launch a domestic service, including flights to Dunedin and Invercargill early next year, but abandoned that timetable last month, blaming high fuel prices and a volatile airline industry.
  17. ^ "Kiwijet plans on track for now". 28 May 2008. Patrick Weil says the company has secured funding through the next six months, but world oil prices will impact their plans.
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