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Shotover delays new boats

By Phil Boeyen, ShareChat Business News Editor

Tuesday 3rd April 2001

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Tourism operator Shotover Jet (NZSE: SJL) is delaying introducing new boats for its commercial jet boat service.

The company says problems with prototypes of its new boats meant its testing programme has fallen behind the original schedule.

Shotover Jet's acting executive director, Brian Kennedy, says it has become apparent that more time is needed to develop the plans and specifications for the new boats to the stage where the company could be sure that high standards of safety and comfort would be achieved.

"While the existing prototype design concept has achieved a new level of in-built safety features and customer comfort, there are operational issues - such as power to weight ratios, propulsion configuration and best use of materials - that we still need to resolve with the designer and builder.

"This means we will not be able to put the new boats into service as quickly as we had originally hoped."

However Mr Kennedy says the company remains committed to its plans for a new fleet.

"I think it's much more important to make sure we remain committed to this medium term goal rather than contemplate the acceptance of any reduced standard of performance or customer amenity in the shorter term."

Mr Kennedy is filling SJL's lead role on a temporary basis after former MD, James Boult, sold his stake in the company to Ngai Tahu Investments, which now holds 80.5% of shares.

Shotover Jet was recently granted a 25 year exclusive concession to operate on the Shotover River near Queenstown.

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