On the 6th of September, NZ557 from Christchurch to Auckland marked the end of Boeing 737 service for Air New Zealand. This was barely mentioned by the press, but there is history behind Air NZ (and its predecessor NAC) flying Boeing 737s, because they truly revolutionised travel within the country in the 1960s and in just over 10 years or so they had seen off the end of the Wellington-Lyttelton overnight ferry, the Christchurch-Dunedin-Invercargill overnight train and one of the two Auckland-Wellington overnight train services - despite best efforts by politicians to prop the latter three up with subsidies.
Before aviation enthusiasts jump on me, yes, I know the Boeing 737-300s that have been flying the last decade and a half are not the ones that started flying in 1968. These were the 3rd generation of the type NAC first flew on the "main trunk" Auckland-Wellington-Christchurch Dunedin", and yes there is now a 4th generation (which are the types flown by the likes of Qantas and Virgin Australia to NZ today), but the basic design retain a lot of commonality. Besides, I like an excuse for a bit of history, and this one contains a political element that demonstrates, once again, how "democratic control" of a business can so easily sow the seeds of failure.
NAC was wholly owned by the Government and had virtually a statutory monopoly on domestic air services. Other airlines did provide services, but they had to prove to the bureaucracy that there was demand for the service (heaven forbid a business start up service risking it might not have customers!) and prove it would not interfere with the services provided by existing operators. So NAC had a legal veto over competition. Nevertheless, it almost always operated profitably overall, although the reality was that the "main trunk" was gouging passengers and making high profits, whereas services to provincial airports like Kaitaia, Gisborne, Oamaru and Westport were unprofitable, but considered politically important (unlike today, with Air NZ which is profit focused across the network). Still, NAC, as government businesses were at the time, was run by aviation professionals and as the jet age started in the 1950s, by the early 1960s it was becoming clear that the next revolution in air travel would be pure jet travel. It gained Government permission to go to tender for jet aircraft to fly domestic services in 1965.
The three main manufacturers at the time, Boeing, Douglas and British Aircraft Corporation all were shortlisted. Boeing with its, as yet unflown, 737. Douglas with the DC-9, and BAC with its BAC 1-11. NAC's criteria for the aircraft to choose included speed of turnaround, fuel efficiency and ability to manoeuvre safely and reliably at Wellington Airport (which had a runway even shorter than it has today). Herein comes the "democratic control" element. The then Holyoake National Government wasn't impressed by the conclusion of NAC's analysis, that the Boeing 737 was the best aircraft for the job. It was more interested in international trade diplomacy and winning the support of the British Government in securing favourable trade access when it would eventually enter the EEC. It insisted that NAC "look again" at its business case, delaying approval for its capital investment in the 737.
NAC did, and once again made it clear that the 737 was the right plane for the job, and so it proved to be. Over 8,600 Boeing 737s have been built (and are still being built), of the four generations of the original design (and a fifth generation is being developed). The BAC 1-11? 244 and production ended in 1982, although Romania's Ceausescu regime was licensed by the Callaghan government to produce 22 it struggled to complete 9 by the time the vile regime was overthrown in 1989. It was not the last attempt by a New Zealand Government to intervene commercially in the decisions of its airlines, but fortunately the airline won and so NAC was one the earliest operators of the Boeing 737 (Lufthansa was the first), the plane that (after some slow years) would be Boeing's biggest selling variant ever.
So what was the result? It cut travel time on the routes it serviced by nearly half, and it was 50% faster than the Vickers Viscounts it was replacing, so one Boeing 737 could fly around twice as many services a day with 50% more passengers, saving them a considerable amount of time, but also enabling airfares to be more affordable, particular for growing business traffic between the main centres. As a result, the competing modes were increasingly hit hard.
NAC did, and once again made it clear that the 737 was the right plane for the job, and so it proved to be. Over 8,600 Boeing 737s have been built (and are still being built), of the four generations of the original design (and a fifth generation is being developed). The BAC 1-11? 244 and production ended in 1982, although Romania's Ceausescu regime was licensed by the Callaghan government to produce 22 it struggled to complete 9 by the time the vile regime was overthrown in 1989. It was not the last attempt by a New Zealand Government to intervene commercially in the decisions of its airlines, but fortunately the airline won and so NAC was one the earliest operators of the Boeing 737 (Lufthansa was the first), the plane that (after some slow years) would be Boeing's biggest selling variant ever.
So what was the result? It cut travel time on the routes it serviced by nearly half, and it was 50% faster than the Vickers Viscounts it was replacing, so one Boeing 737 could fly around twice as many services a day with 50% more passengers, saving them a considerable amount of time, but also enabling airfares to be more affordable, particular for growing business traffic between the main centres. As a result, the competing modes were increasingly hit hard.