News@Eastland

Oceania Aviation Acquires Eastland Group’s Aviation Businesses

Thu, 04 Apr 2013 00:00:00 +1300

Eastland Group recently concluded a deal to sell its residual general aviation businesses Flightline Aviation and Skysales Aviation to Oceania Aviation Group.

This move is consistent with Eastland Group’s strategy of focusing on the logistics and energy sectors, which have been growing rapidly over recent years. While the aviation businesses have been trading profitably in recent times they represented less than 3% of the total assets of Eastland Group.

The purchase is strategic for Oceania and, with the 40 employees they have acquired along with the businesses, makes Oceania the largest general aviation maintenance, repairs and overhaul company in New Zealand. “It will take Oceania to 10 facilities and 170 staff throughout NZ" says Director and co-founder Josh Camp. "The deal was effective as of 1 April 2013 and the Oceania Aviation Group now include Oceania Aviation, Flightline, Skysales, Aeromotive, AMSL, Engine components and Airborne Systems and will have bases in Auckland, Hamilton, Ohakea, Timaru, Christchurch, Queenstown & Dunedin. The Oceania Aviation Group will now represent a number of key aviation suppliers including Cessna, MD Helicopter, Robinson Helicopter, Sikorsky light global Helicopter, Lycoming, HTC, and many more" said Mr Camp.

“The sale was successfully concluded late last month and we are delighted that Oceania was the purchaser. They have a strong focus in the aviation sector and are in our mind great owners of both Flightline and Skysales.” says Matt Todd Group Chief Executive.

The commercial details of the transaction remain confidential between the parties but the capital realised from the sale will be used to help fund the Eastland Group’s capital investment program which includes over $100m to be spent on both the port and electricity network over the next five years.

Eastland Group will continue to operate Gisborne Airport which is part of its logistics portfolio.

See www.oceania-aviation.com

Ends

Less than totally truthful....

Fri, 26 Oct 2012 00:00:00 +1300

Eastland Group has hit back at being landed with all the blame for Air New Zealand’s rise in fares and reduction in the number of flights it will send to Gisborne.

This morning it was reported that both are a direct result of an increase in landing fees at the Gisborne Airport, which is operated by Eastland Group.

Eastland Group chief executive Matt Todd says that this seems to be a less than totally truthful statement.

Air New Zealand has circulated a memo to travel agents stating that airfares between Gisborne/ Wellington and Gisborne/Auckland will rise for most classes of fare by $5 to $10 each way.

Mr Todd says the new fares have the potential of generating $10 to $20 additional revenue per return fare for Air New Zealand.

“All to cover an increase of less than $5 per return fare associated with Gisborne Airport landing fees,” says Mr Todd.

The cost of landing charges for a Q300 (50 seat) aircraft has gone from $190 to $376.55, meaning an increase of $3.71 for each available seat. There are no additional airport charges for parking or taking-off.

“Even if we work on an 80% capacity – which is approximately what they are running at – then the cost per seat has gone from $4.75 to $9.41. That’s an increase of $4.66 per paying fare.

” Mr Todd said while flights were being cut, it appeared that capacity was not, as the smaller 19-seat aircraft were gradually being replaced with the 50-seat aircraft.

A quick look at Air New Zealand’s schedule on Monday, December 3 from Gisborne to Auckland shows there are four Q300 50-seat aircraft therefore with available 200 available seats.

On Wednesday this week there were six 19-seat aircraft and one 50-seat aircraft, so there were 164 available seats.

The move from smaller to larger aircraft is a good one in every way except frequency, the Q300 is nicer to fly in and tends to have lower average fares, than the more costly to operate per passenger, 1900D.

Since Eastland Group took over the operation of the airport in 2005, it has constantly reinvested into the asset, to ensure this vital transport link remains in top order. There have been no landing fee increases for 11 years, and the primary driver behind the landing fee increase is the requirement to resurface the runway and upgrade the facilities.

Gisborne Airport Landing Charge Review

Thu, 25 Oct 2012 00:00:00 +1300

Landing charges at Gisborne Airport are set to rise for the first time in more than 11 years. The change has been driven by the airport’s financial review which looked at costs to run and manage the essential external link.

One of the key drivers behind the increase is the need to resurface the runway, at a cost in the region of $3 million, and a desire by Eastland Group, who manage the airport, to ensure it does not end up like the regions railway line.

Eastland Group general manager – logistics, Andrew Gaddum says the increase is essential to keep this key transport hub in safe, fit for purpose condition so as it continues to serve this region.

“Historically, landing charges have been arrived at by a negotiated process with little or no commercial consideration for the costs of maintaining or ongoing capital expenditure required . So even when the landing fees increased 11 years ago they were never set on any form of commercial basis. This year, we have done a full financial analysis to derive these landing charges, based on methodology developed by the New Zealand Airports Association. Prior to Eastland Group taking over the lease and management of the Airport in 2005 the rate payers of the Gisborne District subsidized the airport users, under this pricing model this is no longer the case.”

Gisborne has a small flying population – both in the number of aircraft movements, and the number of passengers, yet has to provide the same core infrastructure, thus the costs will be slightly higher per unit than airports with greater volumes of aircraft and passenger traffic.

Last year’s asset management plan, which looked at the airport’s maintenance and development needs, reinforced the requirement for the runway to be resurfaced in the near future, and highlighted that the terminal building was in need of some improvements, to meet the growing numbers of passengers utilising the airport.

For the 12 months ending June 2000, 74,930 passengers passed through the terminal this climbed to, 131,013 for the year end June 2012.

“Air New Zealand are not happy with our proposed increase in landing fees and have threatened to withdraw services, but they need to accept that this piece of regional infrastructure must pay its own way and they can’t expect all ratepayers to subsidise those that can afford to fly” says Mr Gaddum “The reality is, that as they have been bringing on more of the larger 50 seat Q300 aircraft they have been decreasing flight frequency and this has happened with the existing landing charges. Mr Gaddum feels that Air NZ is being less than totally transparent about its cost structure to operate into and out of Gisborne as there is a current proposal out by New Zealand Airways – which operate the control tower and approach service into Gisborne Airport – that if implemented would largely offset the proposed increase in landing charges.

Air NZ may argue that Gisborne Airport’s landing charges are high compared to other New Zealand airports, however other council owned airports may be happy to use rate payer money to subsidise their operations, but when airports that are required to operate commercially are used as a comparator Gisborne Airport is not an outlier. Under Gisborne Airport’s proposed pricing both the 19 seat 1900D and 50 seat Q300 aircraft operating into Gisborne by Air New Zealand will be cheaper than the landing fee for Wellington Airport. In the case of Rotorua they charge an additional departure fee of $5 per passenger, when that charge is added to the landing charge it also makes them more expensive then Gisborne.

An earlier review of landing charges in 2007 was abandoned because the airport did not have Airport Authority status. Since then the airport has gained that status and now has to adhere to the Airport Authorities Act in terms of setting landing charges.

Landing charges can only be changed every five years, and it involves a very methodical process where the airport is required to consult with the airline and provide them with detailed financial, asset condition information along with future capital expenditure plans.

Community Centred Hub Central Unveiled

Tue, 25 Sep 2012 00:00:00 +1200

There’s a new community hot spot in the city.

Inner Harbour Hub Central has just been unveiled, and is set to become the heart of soul of many community events.

FEAST GISBORNE will be the first to use Hub Central, but festival director Alex Turnbull is expecting many more over the coming months.

“This is already a natural hub for Gisborne,” he says. “It’s near the water, surrounded by great cafes, bars and restaurants, and yet is still a working environment and a place to watch the kids fish. It’s a place that means so much to so many.”

The concept of Hub Central will continually be evolving to meet the community’s needs.

“It’s a new identity for the Inner Harbour and is fully supported by Eastland Group.”

Craig Willson of Double U Design created the funky new brand, which draws on the water, the seagulls, the cogs of machinery that keep things going.

“It’s symbolic of the life we have around the water, how essential that is to our being, and that everything emanates from this central point,” he says.

For FEAST GISBORNE, Mr Turnbull says planned is a family fun day from 2pm to 5pm on Saturday (October 20) at Hub Central, featuring lots of music, good wine, food and a chance for Club Gisborne members to collect their festival bands at the Shark Bar.

Sunday (October 21) is when others who have earlier purchased tickets can get their festival bands from the Gisborne Wine Centre. There will be no ticket sales at Hub Central.

Transport to the festival will head out from Hub Central to Waiohika Estate, and festival-goers will be returned to the Hub for more fun after FEAST GISBORNE. For more on FEAST GISBORNE head to www.feastgisborne.co.nz.

“This is a great new asset for the community,” says Mr Turnbull.

Coming at you..... FEAST Gisborne festival director Alex Turnbull (left) with Double U Design’s Craig Willson and the new Inner Harbour Hub Central look. Photograph by Diana Dobson

Readying the new buoy on the block

Fri, 27 Apr 2012 00:00:00 +1200

EASTLAND Port has a new state-of-the-art wave-rider buoy to watch over Gisborne waters and keep ships safe.

Article courtesy of the Gisborne Herald. Please follow the link below to read more.

Contracts engineer Neil Burgess says the new device .....http://www.gisborneherald.co.nz/article/?id=27475

Coastal Cargo Ship A Real Alternative for Gisborne

Fri, 20 Apr 2012 00:00:00 +1200

A coastal cargo shipping service linking Gisborne with Napier and Tauranga ports would be a cost-effective alternative for the region’s import, export and domestic cargoes, according to the heads of at least two companies.

The sea freight idea has been mooted by Steve Chapman, chief executive of Pacifica Shipping, which operates vessels elsewhere on the New Zealand coast. He says Gisborne has an “excellent little port” from which to base a dedicated coastal shipping service.

"The ideal ship is a self-loading container and general cargo carrier, connecting at least weekly with Hawke's Bay and Bay of Plenty. Along with containers, it would carry bulk goods such as timber, wine and foodstuffs for domestic markets and for import/export transhipments."

Mr Chapman said such an initiative would cost very little compared to repair and maintenance bills for the region's land transport infrastructure.

"A suitable vessel on charter could be sourced and introduced that could substantially resolve freight connectivity issues. The key issue is which parties are prepared to share the commercial risk of paying for ship delivery and commissioning costs?”

He feels it’s time for business interests in the region to look seriously at the idea, and combine resources to examine the potential benefits. He says Pacifica could provide support for ship management, crewing and stevedoring, as it already does for its existing coastal vessels.

In the interim, there is a possibility of adding Eastland Port to a scheduled coastal service on a seasonal or permanent basis, with Pacifica Shipping already operating a number of services up and down the East Coast of New Zealand.

Matt Todd, chief executive of Eastland Group, which owns and operates Eastland Port, also sees strong possibilities for coastal shipping.

“The Gisborne district needs to have reliable cost-effective freight solutions and with road currently being the only transport option for many businesses, it is an appropriate time to have a look at coastal shipping,” says Mr Todd. ”This may require additional investment in shore facilities and perhaps cranes over time, but that’s fine, provided the demand is there.” “In the last week we have had a coastal vessel arrive delivering fertiliser to Gisborne and the vessel is scheduled for a number more trips. Clearly coastal shipping can quickly step up and fill a need if required, but has the benefit of being able to be switched on and off to some degree to meet demand. An added bonus is that coastal shipping lanes don’t require any maintenance.”

Eastland Port is hopeful of working with Pacifica to meet regional customers transport needs, something that may take on added importance if the decision is made not to repair the railway line.