In 1983 Newmans Group had launched a takeover bid for competing tourist company, Mount Cook Group, then still independently owned. Their reasons for wishing to buy the airline was to make more revenue from overseas passengers, instead of simply feeding them to Mount Cook's air operation. They also claimed that Mount Cook's HS 748 aircraft we no longer up to the standards expected by overseas tourists with Newmans intending to re-equip their airline with either De Havilland Canada Dash 7 or BAe 146s. After their failed attempt, Newmans decided to set up their own competing airline, operating the same tourist routes operated by Mount Cook Airline, but excluding Northland. The airline was launched in only 9 months, with launch celebrations at Rotorua Airport on 12 February 1985.
Operation
Services began on 13 February 1985 after a launch celebration in Rotorua the day before. There were three flights a day between Christchurch and Queenstown, two between Christchurch and Rotorua and a single midday flight from Rotorua to Auckland. Stops at Glentanner were added to the Queenstown flights a few months later. Newmans Air chose to start operations using DHC-7, although only Glentanner actually required an aircraft with short takeoff and landing capabilities. Newmans Air planned to move these aircraft into a feeder role serving Wanaka, Te Anau and the West Coast once traffic had built up sufficiently on the 'trunk' services to allow DC9 or BAe 146 aircraft. Newmans also stated intentions to include Nelson in its network using a third leased DHC-7, but neither of these plans eventuated.
Ansett Investment
had long held a desire to enter the New Zealand aviation market, and indeed between 1960 and 1966 had held a shareholding in South Pacific Airlines of New Zealand. The relaxation of regulation in the aviation sector in 1986 by the fourth Labour government allowed Ansett to take joint ownership of Newmans Air with a 50% share, along with NZ investment company Brierley Investments. The remaining shares were kept by Newmans Group. The resultant company was known as Bilmans Management Ltd, trading as Ansett Newmans. Two new de Havilland Canada Dash 8-100 aircraft were ordered with a view to flying between Auckland, Wellington and Christchurch, with the first aircraft arriving in December 1986. The DHC-7 aircraft were sold by 30 January 1987 having been replaced. However, in 1987 Ansett purchased the remaining shares in the company and in mid 1987 relaunched the airline as Ansett New Zealand.
Fleet
Interline agreements
During its brief existence as a separate company, Newmans Air established an interline agreement with Te Anau-based Waterwings Airways for transfer of passengers at Queenstown. Waterwings Airways was established three years earlier, having taken over Mount Cook Airlines loss-making Te Anau floatplane service. This interline continued after the Ansett buyout.
