Murray Georgel, the Chair of the Palmerston North Airport board, provided the Milson Rotary Club with an insightful update on the airport’s current operations, challenges, and plans. Key points from his presentation included:
Operations & Flights
- Palmerston North Airport accommodates scheduled passenger flights as well as overnight freight services, including a Boeing 737 that transports light cargo between Auckland, Palmerston North, and Christchurch.
- Origin Air also operates services, though its contribution to the airport's overall revenue remains modest.
- The airport is also home to Massey University’s School of Aviation, which regularly uses the facilities for training purposes.
Passenger Growth
- From 2015 to 2019, passenger numbers grew significantly, partly due to Jetstar’s operations. However, Jetstar's withdrawal and the impact of COVID-19 affected overall numbers.
- While recovery has begun, it has been slower than expected. Contributing factors include limited capacity from Air New Zealand, engine-related operational challenges, and ongoing terminal redevelopment work.
- Looking ahead, growth is possible, but it will depend on factors like rising demand, cost of living pressures, and Air New Zealand's ability to scale operations.
A major redevelopment is underway at the airport due to seismic strengthening needs.
Terminal Redevelopment
- A major redevelopment is underway at the airport due to seismic strengthening needs. Rather than simply reinforcing the existing terminal, the decision was made to build a completely new, modern facility for $37 million.
- The project will be completed in phases, ensuring the airport remains operational throughout, to finish by December 2026.
- The new terminal will feature laminated timber construction, which, though more expensive than rolled steel, enhances both the environmental impact and the visual appeal.
Future Plans
- Plans to improve the customer experience include new drop-off shelters, expanded car parking, and potentially adding screening facilities to accommodate larger aircraft if needed.
- With the development of Te Ahu a Turanga and the nearby rail distribution center, the airport is positioning itself as a key hub for the region.
- There are efforts to attract more business by developing land for retail and distribution centers, upgrading rental car facilities, and establishing new partnerships for hangar leases.
Sustainability
- Palmerston North Airport is making great strides toward sustainability, having transitioned to renewable energy and electric vehicles. Old infrastructure, such as gas boilers, has been removed to reduce the carbon footprint and align with the airport's environmental goals.
- Murray emphasised the airport’s importance as a regional transport hub and expressed confidence in its future growth. He highlighted the airport’s proactive steps toward improving infrastructure, customer experience, and sustainability while positioning it for long-term success in the region.
Q&A Highlights
- Terminal Design: The new terminal will feature laminated timber, which adds an extra $1 million to the cost compared to steel but offers aesthetic and environmental benefits.
- Revenue Streams: Most revenue comes from passenger numbers, with airlines preferring fuller flights for operational efficiency.
- Train Station Plans: Past discussions about adding a train station near the airport have not led to any current plans.
- Runway Expansion: The airport owns land for possible expansion but has no immediate need to accommodate larger aircraft.
- International Flights: Murray explained that airlines ultimately decide where to operate. While the idea of international flights is appealing, logistical costs and the nature of the passenger base (mainly New Zealanders traveling abroad) reduce its current feasibility.
- Relationship with Ohakea Air Base: Communication is limited to shared issues, such as PFAS contamination, but there is no significant operational overlap.
- Redevelopment Costs: The cost of the new terminal will be approximately $37 million, with further developments potentially exceeding $40 million.