Business South March 2021

16 | Invercargill Airport IAL looks to explore new opportunities Russell Fredric Looking ahead: the IAL team, from left, Nigel Finnerty, Julie Jack, and Chris Fox. REGIONAL DEVELOPMENT I nvercargill Airport Limited (IAL) has recov- ered from the Covid pandemic faster than expected, but the crisis has prompted a focus towards increasing its non-aeronautical services. While the airport has made a good recovery, general manager Nigel Finnerty acknowledged there is considerable room to grow non-aer- onautical services, such as leasing land to aviation and non-aviation related businesses and possibly a business hub on the airport’s 400 hectare site. Commercial and Business Development manager Julie Jack says the Covid crisis has shown that growing their non-aeronautical services is important and the airport cannot rely solely on planes taking off and landing. “We are wanting to make the airport a really easy place for people to do business, so that’s our focus moving forward, as well as also looking to strengthen our aviation services,” says Julie. Although the 2019/2020 fiscal year present- ed “new and unique” challenges, IAL achieved a before tax profit of $281,000 despite a 9% decrease of passenger movements. The company was able to absorb the signifi- cant financial cost of Covid-19 ’s impact due to its strong balance sheet; before the lockdown it was heading towards another record year with passenger growth reaching 9% on a roll- ing-year average. The highly successful introduction in August 2019 of a direct jet service between Auckland and Invercargill proved a perfect example of adding value to the airport, the community and businesses while providing seamless air access to the far south for tourists and busi- ness people. “Passenger loads were very high and we understand it was the most successful launch Air New Zealand had ever had.” Invercargill airport is the only regional airport in New Zealand with a jet service and the success of the A320 flights from Auckland has raised the question of the potential for another jet service. Because of its proximity to the Southern Ocean there could also be potential for the likes of a small on-demand air force base or other services that could benefit from its strategic location. The A320 jet service was originally intro- duced as a late evening arrival and early morning departure, but the arrival time has changed to 12.15pm, altering the mix of travellers to less suits and more tee shirts and shorts. The timetable change has been well received and has made it extremely easy for tourists to see the far south. When completed in early 2022 the Inver- cargill Licensing Trust’s (ILT) The Langland’s 80 bed hotel will alleviate a pinch of quality accommodation in the city. “Even now we are seeing it’s hard to get ac- commodation so that’s going to be really great when that opens.” A focus on fly-and-drive tourism has sought to encourage tourists to spend more time road touring Fiordland, Southland and the Catlins from Invercargill, Queenstown or Dunedin rather than fly-in fly-out without fully experiencing these regions. This focus is a result of close collaboration between IAL, local development and tour- ism agencies and Queenstown and Dunedin airport companies; this, combined with the ILT’s hotel build and the city’s CBD redevelop- ment, brings a strong tourism dynamic to the Southland region. “That’s probably part of the reason that Air New Zealand bought the jet service here; we do work together and we’re supportive of one another.” “We are wanting to make the airport a really easy place for people to do business, so that’s our focus moving forward, as well as also looking to strengthen our aviation services.” Building Southland for over 50 years We Specialise In All Types Of - Commercial Construction - Design & Builds Maintenance Work 78 Otepuni Avenue, PO Box 6051, Invercargill 9812 Invercargill 03 216 9002 | Queenstown 03 442 1311 Email: info@hendersonconstruction.co.nz www. hendersonconstruction .co.nz Building Contractors and Painters Since 1970 HCL H ENDERSON C ONSTRUCTION L TD Commercial & domestic flooring services. CARPET |VINYL |VINYL PLANKS • New Builds • Rental Properties • Repairs • • • • • • Architectural Design and Documentation Alterations and Additions Residential and Passive Houses Commercial Civil Construction Design-Build Earthquake Strengthening