Cheap cars

2 Cheap Cars will sell 10% of the capital of Kiwi Regional Airlines


Kiwi Regional Airlines avatar of a 34-seat SAAB 340 airplane model.

2 Cheap Cars, which has built a nationwide chain of auto yards selling second-hand imports since its inception four years ago, is looking to sell its stake in Kiwi Regional Airlines, which is run by the founder of failing operator Kiwi Travel International Airlines.

The auto dealer said today he wanted to sell his 10.4% stake in the airline and that he “never intended to be a long-term investor.” During its first investment last December, the company said it was “joining a consortium,” with chief executive Eugene Williams appointed to the airline’s board of directors.

Documents from the Companies Office show the company initially owned 23% of the airline, but its stake was diluted in July, August and again earlier this month when Kiwi Regional Airlines issued more shares. .

“When we first got involved, the airline didn’t have any other investors,” Williams said. “We were delighted to help at the entrepreneurial level and to play a role in its start-up. Now, with CAA certification, an airplane, and a growing passenger list, it’s a great time for others to join us. “

There are currently four other investors: Nicole and Guy Domett, former directors and shareholders of the New Zealand School of Tourism, who each individually own 33 percent; Ewan Wilson, founder and director of the company, which owns 20.3 percent; and William Wilson, with 4.2 percent.

Kiwi Regional Airlines was formed by Ewan Wilson in December 2014, after Air New Zealand announced it was abandoning services from Auckland to Kaitaia and Whakatane, Wellington to Whangarei, Taupo and Westport, and Palmerston North service to Nelson in April 2015. Cars was the first investor, and at the time Williams told BusinessDesk that his role would be to “provide advice on marketing”.

Wilson was barred from serving as a director for five years because of his fraud convictions following the collapse of Hamilton-based Kiwi Air in 1996. The airline struggled under the weight of competition from subsidiaries from Air New Zealand, Freedom Air, now defunct, and Mt Cook Airlines, and the logistical problems created by his hired plane being too often in the fog at Hamilton Airport.

In July, 2 Cheap Cars sent a press release stating that it had purchased a Saab 340A aircraft “through its subsidiary Kiwi Regional Airlines”. At the time, Wilson said that Kiwi Regional Airlines “categorically” owned the aircraft, and at the next shareholders meeting there would be “clarification of who speaks on behalf of the company.”

The airline said it received its Air Operator Certificate from the Civil Aviation Authority on October 23 this year and started flying on October 27 this year, with direct flights between Dunedin and Queenstown, Dunedin and Nelson, and Nelson and Hamilton. This month, he announced that he would start flying direct from Nelson to Tauranga twice a week.

At the end of November, a month after the start of the flights, the company canceled its Dunedin-Queenstown route due to “a combination of several weather-related cancellations and low passenger bookings, which makes the continuation of this service unsustainable. “.

In today’s press release, 2 Cheap Williams said the company now has 15 outlets across New Zealand, after adding five this year, and expects to have sold more than 10 000 vehicles this year.

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