Norfolk Island Airlines has announced that the airline will withdraw its direct Norfolk Island to Auckland service.
While the airline commenced services in June, with a belief that, based on current fees and charges, the route could be returned to sustainable pre-2017 load factors and yield, recent announcements by the Norfolk Island Regional Council and tax increases by the Australian Commonwealth Government has caused the airline to reconsider its position.
In July and after the airline had commenced flights on the financially marginal but economical vital route, the Commonwealth Government raised its departure tax by 10% and then in August the Norfolk Island Regional Council announced that it would be raising its airport movement charges by nearly 100%.
Coupled with larger than planned start-up losses caused by delays from the Norfolk Island Regional Council in relaunching the destination in New Zealand, the tax increases have resulted in the decision that it is no longer a commercially viable option to continue further investment by the airline on this route, the airline states.
The withdrawal of services will be effective, and inclusive, of flights from14 January 2018. All affected passengers will be contacted by the airline and offered options to change travel plans or receive a full refund.