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I'm quite sure they do - Air NZ will continue to fly the vast majority of it's flights and pax from SYD.I doubt Air NZ, which has expressed an interest to fly there, would look at it like that.
NZ would see this as an opportunity to lure a number of pax away from booking a possible QF/JQ/EK/LA/VA flight originating from SYD, by offering an option to those pax at a more convenient location for them, originating and returning to WSI.
With no curfews, lower fees and perhaps little need for premium services like operating a business lounge - at least not one of their own - they could also offer more competitive (or more profitable!) fares for these flights from WSI, as well.
