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The government is spending an average of $ 6 million a week to subsidize airlines to keep air cargo moving during the coronavirus pandemic.
The Government is also looking for opportunities to use cargo flights to repatriate kiwis trapped abroad due to the collapse of international air links around the world.
As the number of passenger flights to New Zealand has plummeted due to the impact of Covid-19, so has air cargo capacity, a large amount of which has historically been carried in the hold of passenger aircraft.
Transport Minister Phil Twyford said there were currently around 90 commercial and charter flights to New Zealand each week.
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However, before Covid-19 there would have been more than 600 flights per week.
Government support for international air cargo capacity has so far added 56 weekly cargo flights to New Zealand, with more expected, he said.
The Government placed $ 330 million of a $ 600 million Covid-19 package for the aviation sector in an International Air Cargo Capacity scheme to add capacity for high-value export cargo and maintain business links with key global markets by time that guarantees essential imports such as medical supplies.
Alden Williams / Things Cargo has been an important lifeline for Air New Zealand during the coronavirus pandemic.
Funds are provided to secure cargo on key routes under agreements with carriers. Carriers then offer that capacity directly to cargo customers on commercial terms.
“We invite commercial proposals to deliver air cargo capacity in key markets,” Twyford said.
The first successful applicants were Air New Zealand, China Airlines, Emirates, Freightways Express, Qantas, and Tasman Cargo.
“We are working with other operators and hope to make more announcements shortly,” Twyford said.
“There is a great demand for air cargo, at a time when capacity is limited. This scheme helps provide certainty for business, while airlines and carriers respond to a changing world. “
Each agreement was different and adapted to the proposal, route and load capacity of a carrier.
Generally speaking, the level of support depended on how full the plane was, with funding reduced as the plane reached cargo capacity.
The Government estimated that the total amount paid would be approximately $ 6 million per week, but this would fluctuate.
Some providers were using passenger planes and would work with the government on repatriation opportunities that occurred along the cargo routes.
The first phase of the contracts lasted until the end of June and the plan was expected to last at least six months.
Air New Zealand cargo general manager Rick Nelson said cargo customers could access capacity through Air New Zealand’s traditional network, with a few exceptions.
“We are working to provide connectivity to and from the UK and Europe, as well as Houston and Chicago through the Los Angeles and San Francisco, Hong Kong and Narita gateways.”
He hoped the airline could revert to its traditional model as demand for passenger travel increased.
The airline would not operate cargo flights under the agreement to London and Buenos Aires.
Singapore was also not included in the initial phase.
