Issued by Waikato Regional Airport Limited and Tauranga Airport

July 10, 2009.

NEWS RELEASE

Hamilton, Tauranga Airports Forge Alliance

Hamilton International Airport and Tauranga Airport today announced a strategic alliance to ensure the success of international flights out of Hamilton and build tourism in both regions.

The alliance will see Tauranga Airport promoting international flights and connection out of Hamilton on low cost airline, Pacific Blue, which starts scheduled services on September 1.

In return, Hamilton, as the gateway to the central North Island, will be promoting Tauranga and the Bay of Plenty as a destination to Australian tourists arriving on Pacific Blue from Sydney and Brisbane.

Mayors of Hamilton, Bob Simcock and Tauranga, Stuart Crosby, have lent their support to the alliance, saying that it will bring huge benefits to both regions.

The Mayors say that Pacific Blue will open up previously untapped Australian markets and that the Waikato and Bay of Plenty regions are positioned to offer a new tourism experiences.

They see the Pacific Blue network in Australia delivering tourists looking for a fresh experience in New Zealand.

Mr Crosby said Tauranga is endorsing Pacific Blue flights out of Hamilton because it was a fit with a region wanting an international connection.

At the same time this was consistent with the Bay of PlentyŒs bio-security focus and separation on behalf of the kiwifruit industry and other significant horticultural operations.

Tauranga airport does not have aspirations to operate as an international airport, Mr Crosby said.

"What we now want is a growing domestic operation with easy access to international flights just an hour or so away.

"It makes sense for Tauranga as one of New Zealand's larges and growing cities to endorse Hamilton airport and avoid unnecessary duplication of investments in assets."

The alliance with Hamilton's airport would bring immediate benefits by drawing Australian tourists to the unique visitor attractions in Tauranga and the region, according to Mr Crosby.

Hamilton Mayor Mr Simcock said with the large investment made at the airport the alliance with Tauranga would mean ratepayers in Tauranga would not have to fund further international development at their airport.

"Just as many Waikato exporters ship through the Port of Tauranga, it makes sense for Tauranga travellers to make use of flights from Hamilton," he said.

"As collaboration over air and sea travel grows, I'm sure we will see more business going both ways.

"It represents a win-win situation for both regions and makes more effective utilisation of major regional assets."

Meanwhile, the chief executives of both airports, Chris Doak in Hamilton and Ray Dumble in Tauranga are working closely to develop strategies to capture tourism opportunities.

An early objective will be to look at introducing coach services from Tauranga Airport to Hamilton Airport when Pacific Blue starts flights to Sydney and Brisbane on September 1.

"This will make it easy for people to choose to use the Hamilton services," said Mr Dumble.

Pacific Blue has already committed to competitive airfares to Australia from Hamilton, similar to those currently offered from Auckland International Airport.

The chief executives said the drive time between airports cut by half the travel time to Auckland.

The issue of cheap parking has already been addressed with long-term parking available at Hamilton at a cost of $28 for an unlimited period.

One of the advantages with Pacific Blue was the ability for New Zealanders to fly on to other Australian destinations on Pacific Blue's network, they said.

The airline's link with Virgin Airlines and in time V-Australia, meant that passengers could also take flights to Bali and Los Angeles and other global destinations.

Pacific Blue, and its associated airlines, offered one travel rewards card which Doak and Dumble said would be attractive to business travellers.

Hamilton Airport has just announced it is seeking resource consent to extend its runway out to almost 3000 metres, capable of handling wide-bodied jets to destinations beyond Australia including Asia when demand warrants.

This follows a recent $15.5 million redevelopment of the terminal and a capital injection of $12 million by the airport's five shareholders, the Hamilton City Council and the Waikato, Waipa, Matamata Piako and Otorohanga District Councils.

The airport has been offering Australian and flights to Fiji since 1995, firstly on Kiwi Air, then on Freedom Airlines and more recently on Air New Zealand which ceased transtasman services in late April.

Over the past 10 years, 100,000 transtasman passengers a year have been flying out of Hamilton Airport.

ENDS

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