Origin Pacific, New Zealand's number two airline, has stopped flying and has been placed into receivership.
Origin ceased scheduled service in August after an unsuccessful attempt to raise capital. The Nelson-based turboprop operator convinced creditors to delay court proceedings while it tried to sell its freight business and explore plans for passenger charters. Both efforts failed, leaving Origin Pacific no option but to wind up its affairs.
Several bidders made conditional offers for the freight business, but reached no agreement. The airline abandoned charter plans after Air New Zealand's (ANZ) regional arm, Air Nelson, added capacity and lowered fares by 8% on routes where it had competed with Origin. ANZ denies any link between these moves and Origin's charter plans.
Opinions vary over the cause of Origin's troubles. Managing director Robert Inglis blames ANZ for predatory practices that prompted Origin to complain to New Zealand's competition commission. The commission never took any action. Others blame management styles, fuel prices and competitive pressures. Origin Pacific has struggled since 2004, when Qantas stopped codesharing and launched its own domestic flights.
Origin is one of three regional airlines in Australasia recently to hit on hard times. Brisbane-based Sunshine Express has lost one of its Fairchild Metros in a maintenance accident and faces new competition from QantasLink. In August Sunshine revived merger talks with Australia's largest independent regional, Rex, but these later broke down, leaving Sunshine's future in doubt.
Finally, a group of four airlines operating in Australia's outback as Aboriginal Air Services has stopped flying and plans to sell its assets. Its administrator says the company failed to find a buyer for the group as a going concern. ■
Source: Airline Business
