IWK

Absence of direct flight, major hurdle for growth in bilateral trade between India-NZ, says industry expert

Written by IWK Bureau | Feb 28, 2018 1:23:33 AM

Industry captains operating in India-New Zealand space believe that absence of direct flight between the two countries is a major detriment for the growth of business and trade between the two countries.

The group of industry experts were speaking at “India Unplugged,” a talk series hosted by India New Zealand Business Council – the premier trade body between the two countries – at the ARA Institute, Christchurch.

The talks - first of a series planned throughout the year – held on Thursday, February 22, witnessed enthusiastic participation from several key speakers who have experience in the Indian market or operate in that space to share their views, experiences and concerns with other kiwi businesses.

One of the key points, reflected by several speakers was the geographical distance and different time-zones along with the absence of direct flight connectivity, which was a major detriment to the growth of NZ-India bilateral trade.

Jo Pennycuick, Global Managing Director, Redesign Group – a group that has been involved in some major infrastructure projects in India, like Chandigarh International Airport, Delhi T3, Bangalore, Chandigarh, Hyderabad and Mumbai airports – delivered the key note address and delved on how connectivity issue between two countries makes business operations difficult.

“The fact that New Zealand is situated seventeen hours away on a flight, with a seven and half hours time difference, it’s not easy to manage business operations in India, from here,” Ms Pennycuick said.

Ms Pennycuick acknowledged the vast size and potential of the Indian market for NZ businesses and emphasized that “making a relationship” was key to success in that market.

“Know your market!

“If you are entering India then carry out your research and target the region that you feel your business will be most fruitful,” Ms Pennycuick further added.

However, it was aviation expert Gareth Williamson, who is the Airline Development Manager at Christchurch International Airport and leads airline passenger and airfreight development at the airport, who was more forthright in emphasizing the importance of direct-flights for the growth of business between two countries.

“As compared to China, the India market has more potential for growth, as it has not matured yet.

“However, the absence of any direct flights does hit the market. That’s where the route economics come to play,” Mr Williamson asserted.

Mr Williamson has had an extensive career in aviation and tourism, having started his career in Christchurch before spending time in Australia and five years in Auckland in various airline management roles, before returning to Christchurch in early 2016.

 Mr Williamson lives and breathes aviation, and has a particular interest in the role airlines play in geopolitics, as well as technical aircraft performance.

“To grow NZ-India aviation sector, Indian government must allow network carriers to operate free of constraining regulations around growth and ownership – and to ease border costs for travellers,”  Mr Williamson further added.