Sydney Airport Message Board - Norfolk Air latest casualty of economic crisis

Flights to NLK from SYD, MEL and OOL have been dropped.

http://www.smh.com.au/news/news/norf...750092403.html

Quote:

Norfolk Air latest casualty of economic crisis
October 15, 2008 - 12:07PM

The global credit crisis is the biggest challenge Australian airlines have faced since the Asian meltdown a decade ago, an industry veteran has warned.

The small tourist hub of Norfolk Island, off the NSW coast, became the industry's latest casualty, after its airline announced yesterday it was slashing three services to the mainland.

Norfolk Air pulled the pin on routes from Melbourne and Sydney, as well as a new weekly Gold Coast service, which had been launched barely two weeks earlier.

Norfolk Air boss Jeff Murdoch said the cuts were a response to the worsening financial crisis.

"I've been in this industry for 30-plus years and (this situation) is unique," he said.

"I remember back to the Asian meltdown at the end of the 90s ... that was pretty significant, but this is far, far worse.

"This transcends virtually anything that I've seen previously."

Qantas, Virgin Blue, regional carrier REX and budget airlines Jetstar and Tiger Airways have all culled routes this year.

Mr Murdoch defended the decision to can the Gold Coast-Norfolk route, after just 12 days.

"Business needs to make prudent decisions, that's what we've done," he said.

"That said, I think it can bounce back quickly."

AAP