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The first week of October 2006 saw Freightways shares close up 3c at $3.68. Freightways has indicated its intention for expansion of its estimated half share of the $7 million domestic same-day airfreight market once a Qantas contract is secured.

Managing director of Freightways, Dean Bracewell maintains no purchase having been made by the company from Origin’s receiver except for some tools for the job. Recruitment had been done for 20 Origin freight staff in Auckland, Wellington and Christchurch.

With its own fleet of five cargo aircraft, Freightways carries around 40 tonnes of freight on a regular night. It has tied up with cool store providers for transporting perishables including seafood and flowers, which account for a substantial chunk of Origin’s same-day business.

In 2004 Origin narrowly averted a collapse thanks to Pero’s help. In early August it suspended passenger services citing its need for immediate cash of around $5 to 7 million and is currently seeking a buyer for its prosperous airfreight business.

Ballard reveals that Origin handled 10 percent of the company’s flower supply, which was routed from Christchurch to Auckland, which is the export destination in the country. South Island seasonal peaks were the time when Qantas space was crucial due to overloading of freighters. However on September 15, the airline admitted failure in locating a buyer resulting in a wind up.

Pero suffered losses exceeding $3 million in Nelson-based Origin Pacific that went out of business last month but had no intention of altering his plans for a new airfreight service.

David Ballard, managing director of exporter New Zealand Bloom with revenues of $17.5 million annually described the takeover by Freightways as a major relief as it would otherwise left Air New Zealand as the sole service. For Air New Zealand cargo on domestic network commenced only in April. For the past seven years the task had been contracted to New Zealand Post joint venture Pace.