RAL loss would be ‘huge hit’

The Cabinet’s refusal to provide funding beyond December for Ruapehu Alpine Lifts could result in ‘‘arguably the largest tourism related failure in New Zealand history’’, the company’s voluntary administrators say.

Ruapehu Alpine Lifts went into voluntary administration in October carrying $45 million in debt after the combined effects of Covid19 lockdowns and border closures, and poor snow at Tū roa and Whakapapa skifields. The administrators needed $9m to get through until the start of the 2023 ski season.

The Ministry of Business, Innovation and Employment (MBIE) and ANZ have stumped up $4.5m, which runs out by the end of this month.

The Cabinet’s decision on November 28 not to provide further funding meant there were currently no other options and liquidation was a strong possibility, administrator John Fisk told a meeting in Ohakune on Wednesday.

‘‘The community impact would be severe – arguably the largest tourism related failure in New Zealand history impacting one of the poorest regions in New Zealand that supports an estimated 1580 jobs both directly and indirectly.’’

Administrators were back to the drawing board on coming up with a plan for creditors. Hibernation next year was not an attractive option for anyone, he said.

In a liquidation, selling the company’s assets would not create enough cash to pay secured creditors. The Crown would have to foot the estimated $100m bill to remove assets and remediate the area on Mt Ruapehu, a national park, which could take decades, he said.

There would also be $100m lost in economic benefit to the region each year.

Ruapehu District mayor Weston Kirton said people were anxious about the looming deadline and the prospect of RAL liquidating, which would be a ‘‘huge hit’’.

Losing the skifields would affect everything from real estate to businesses to infrastructure to schools, he said. ‘‘It’s a spiral effect to the economy and no matter what you put in place in the medium term, it won’t ease the pain of losing that [$100m economic benefit] year in year out.’’

He wanted the Government to listen to the community, and take into consideration the downstream effects.

Following the Mt Ruapehu eruptions in the mid-1990s, the region had diversified away from the volcano, including building cycle trails which were now a significant contributor to the economy.

‘‘But it won’t replace the decades and generations of skiing in this area, and this is a go-to place in North Island for obvious reasons.

‘‘There’s an expectation from people from further afield, like Auckland, to come to our skifields year in year out. And if that wasn’t to happen in the future it would be a huge blow to not only our region, but the rest of the country as well.’’

Sam Clarkson, one of two life pass holders on the creditors’ committee, said the cost of not saving RAL was 10 times greater than the cost of saving it.

‘‘So even if you hate skiers, it’s still a bargain,’’ he said.

‘‘They don’t even have to care about looking after skiers. They just have to think about looking after taxpayers’ funds, and liquidating is an absolute travesty for taxpayer funds.’’

A crowdfunding proposal was being worked on, but it took time and time was running out, he said.

A survey of 14,500 life pass holders secured indications of $25.9m in further funding from them, but Fisk said it was unrealistic to raise those funds from them in the time the administrators had available.

People asking why the Government should bail out ‘‘rich entitled ski wankers’’ were missing the point, he said.

‘‘One of the things about rich people, what you actually want to do if you don’t like them is to get their money off them.

‘‘The way to do that is to offer them an attraction that gets them out of Auckland and into the districts spreading their money far and wide.’’

The Government might be concerned it would need to keep pouring money into the skifield operator, judging by the losses in the past.

‘‘That’s a very valid question,’’ Clarkson said. ‘‘And that’s where we need to change the way things were done.’’

The world’s largest passenger jet has touched down in Auckland as Emirates resumes its non-stop service to Dubai – one of the longest commercial flights in the world.

The double-decker A380 has been largely absent from New Zealand skies since the start of the pandemic, save a series of repatriation flights operated by German airline Lufthansa in April 2020.

Emirates last flew an A380, which famously features a cocktail bar and showers, to Auckland in February 2020. Since then, it has operated the route with a smaller Boeing 777-300ER, with a stop in Kuala Lumpur.

The UAE-based airline’s New Zealand regional manager, Chris Lethbridge, said the return of the superjumbo jet was a sign international air travel for New Zealanders was returning to normal. ‘‘The A380s are more than an aircraft for New Zealanders. Since first arriving in 2009, they have been a symbol of our passion for travel and new experiences. We’re very proud to bring them back to the country.’’

The return of the daily non-stop service will see flights depart Auckland at 9.15pm and arrive in Dubai at 5.25am the next day, local time. The return flight will depart Dubai at 10.05am and arrive in Auckland at 11.05am the next day. Flights between Dubai and Christchurch via Sydney are set to resume in March. With a flight time of 17 hours and 15 minutes, Emirates’ Auckland to Dubai service is one of the world’s longest commercial flights, and the longest route on the airline’s network. Air New Zealand’s Auckland to New York service is slightly longer at 17 hours and 35 minutes. The longest flight in the world is Singapore Airlines’ New York to Singapore service, with passengers spending 18 hours and 45 minutes in the air.

If you’re going to be in the sky for a long time, the A380 is one of the best places to do it – particularly if you’re in business or first class.