Fuel prices have exposed a deeper problem in NZ’s regional air network. Struggling routes may need public support if smaller communities are to stay connected.
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Before their demise, both Rex and Bonza had criticised the way airport slots are allocated at Sydney airport, arguing it locked them out of the premium takeoff and landing times needed to compete.
Rex Airlines appears to be in trouble, with a trading halt on its shares. Yet it has more structural resilience, financial backing and political clout than Bonza, which folded recently.
Making a jet airline succeed hinges on three key factors – market scale, airport access, and geography. Australia offers new entrants a brutal starting ground on all three.
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