History

Eagle Airways Ltd was founded in 1969 by Malcolm Campbell, as a family business, initially as a Flight Training School.

Operations commenced in 1969 from Hamilton Airport with the first aircraft being a Victa Airtourer. Business expanded rapidly and within 18 months six aircraft were in use on flight training and air transport.

First schedule licences were granted by the Air Services Licensing Authority on the 12th September 1973 for the operation of a new Beechcraft Baron on routes:

• Hamilton Palmerston North
• Hamilton Wanganui
• Hamilton New Plymouth

During the formative years Malcolm and Joan Campbell mortgaged all they had to expand the business. Joan provided the reception, booking, administrative and accounting functions while bringing up a young family. For the first few months the business was run from a caravan located next to the Airport Terminal while more permanent premises were built.

From the School .... to Maturity

The Flying School flourished during the 1970s with 9 aircraft operating on flight training offering professional flying in the most advanced aircraft up to airline standards.

Scheduled service continued to expand with the addition of a 9 passenger seat Piper Chieftain in 1976. Company activities were divided 50% training and 50% scheduled transport.

In the late 1970s the company identified that the future strategic direction should be directed towards Air Transport operations.

More Aircraft

An investment partner was brought into the company and in 1979 approval was granted from the Air Services Licensing Authority to operate the first 18 seat Turbo Prop aircraft on regional routes in New Zealand. The aircraft was purchased new from the Embraer factory in Brazil.

In selecting the aircraft type, all aircraft on the world market were assessed and the Embraer Bandeirante was shown to provide the most reliable and economic performance. After 20 years of service the original aircraft ZK-ERU was still meeting the criteria.

In 1983 Air Central, which was operating throughout the central North Island with 3 x Mitsubishi MU2 aircraft, became available for sale and Eagle purchased their operations. A fleet rationalisation plan saw the aircraft replaced by further Bandeirantes and Piper Chieftain aircraft. Eagle were then operating 7 aircraft on scheduled services.

New Investors

New Zealand Insurance, through their aviation interest, purchased all shareholdings in the company, including that of the founding shareholders. The Flying School was sold and the company concentrated on providing scheduled air transport and charter services.

Mr. David Coxhead of the Mutual Group of Companies had always had an aviation interest and in 1987 purchased the business from NZI.

As a result of deregulation of the Aviation Industry in 1984 greater opportunities existed for entrepreneurial operators with the financial resources to establish a position in the New Zealand aviation market. 

In 1989 Air New Zealand indicated that it would withdraw Friendship aircraft from regional services as the operation was uneconomic as a stand alone business when a new competitor (Ansett) became established on main trunk services. Eagle formed a commercial agreement with Air Nelson to form the basis of what is today the regional network.

Air New Zealand Buys in

The Carriage by Air Act directed National Airways Corporation (NAC), the precursor to Air NZ National, to develop air services throughout NZ for social and economic growth.

• Corporation's duty involved doing what it was directed regardless of its own operational economics.
• As part of the deal it had first rights on any route where its Government directive could be fulfilled, and if it could make some money so much the better.
• Other operators had to apply for licences for routes.
• They also had to demonstrate that they could operate routes economically.
• Thus, having found a route not being flown by NAC, in applying for a licence they faced the jeopardy that in proving it could be economic NAC might become interested.

Possible routes became fewer as different political pressures came on NAC. Electorates hungry for some symbol of modern sophistication voted for candidates who promised to make them part of a national air network flown.

• Centres like Whakatane, Tauranga and Rotorua - an hour's drive from each other - all gained air services, when better economic sense would have been made with one centrally-sited airport serving them all.
• Perception was established ,that an adequate air service involved commercial aeroplanes, even though a town might only have one "political token" flight a day around which those who wished to travel had to organise their lives.

The crunch of operating uneconomically came when oil prices rose. In June 1976 the Government directed NAC to operate profitably.

• It was allowed to discard some of its operations, between Whakatane-Tauranga and Gisborne, Hamilton and Wanganui, and Palmers ton North-Wanganui and Hamilton, on which it was losing $650,000 a year (that amount was 35 years ago!)
• These routes were taken up by a variety of small aviation operators, opening up a new competitive era.

Meanwhile NAC-Air NZ was feeling strains under its new profitability directive.

• Fares on its profitable main trunk routes had had to be increased - some by 50% - to subsidise the "thin" regional routes.
• By 1979-80 those fares were being blamed for falling main trunk traffic, and in that financial year Air New Zealand had a net loss.

 Air NZ was bleeding, and the long process of route deregulation was accelerated.   

• Airlines quickly moved to take advantage of the opening skies. 
• With the final deregulation of NAC in 1988, Air New Zealand opted out of its Regional Routes. 
• Significant changes to the industry at this time created an over supply of operators. 

Air NZ in 1988 took a 50% shareholding in Mt Cook, Eagle Airways and Air Nelson.  This led to a commercial contract which rationalised and fed each other’s routes under a joint reservations system and interline agreement, creating a true regional operation.

The “Air NZ Link” brand name was introduced in 1991 to compliment the Air NZ “National” brand as a domestic operation.  Air Nelson, Eagle Air and Mount Cook Airline, were brought in under the brand.

Malcolm Campbell retired in 1996.

A New Era

John Hambleton took over from Malcom in 1996 as General Manager. Then Doug Roberts, Grant Kerr and now Carrie Hurihanganui.

In February 2001, the Air New Zealand Board of Directors approved the purchase of 16 brand new Raytheon Beech 1900D Airliners (we now operate 18). The introduction of the Beech 1900D has seen Eagle's route network expand to 21 destinations, operating up to 1050 flights per week.