AirNZ & the ash-cloud

[kiwiandrew]

Offcut has a valid point, remember also that NZ did actually cancel a small number of services around 11-12 days ago where safety really was an issue in those areas where they did not have the option to fly under/around the ash cloud - hardly the actions of a reckless airline.

[73to91]

Money grounds Qantas flights, analyst says

A LEADING New Zealand aviation analyst has claimed it was cash, not ash, that grounded Qantas and Jetstar planes while plumes of Chilean volcano cloud hung over the Tasman Sea.

Australia's national carrier and its budget subsidiary operated a severely disrupted trans-Tasman service for two weeks while Air New Zealand continued to fly "under and around" the ash from Chile's Puyehue volcano.

All flights have now resumed but debate still swirls around the airlines'
stances, with Air New Zealand winning lashings of praise for continuing to fly.

New Zealand's Prime Minister John Key showed his allegiance at the country's winter festival opening at the weekend, telling Australians in the crowd: "I bet you flew Air New Zealand."

Jetstar and Qantas have said their decision not to fly was based entirely on safety, but Forsyth Barr aviation analyst Rob Mercer told Fairfax New Zealand he believed it was a financial decision.

He said most airlines were currently running at a loss due to high fuel prices and the global economic downturn.

Qantas, Jetstar and Air New Zealand were all affected but Air New Zealand's domestic routes were highly profitable, Mr Mercer said.

This explains why it kept flying, even though cruising at much lower altitudes to stay clear of the ash added 10 per cent in fuel costs for its jets.

Grounding aircraft, while expensive, did not cost as much when profits were low or non-existent, he said.

"The decisions not to fly are easier if you are running at a loss, than they are if you are running at a profit," Mr Mercer said.

He said Air New Zealand came out of the situation "with a lot more customer loyalty than Qantas".

But travel chain Flight Centre said the while more people were flying Air New Zealand in the short-term, customers were expected to stick to their preferred airline.

Qantas has said safety is the airline's first priority, while Jetstar chief executive David Hall said the decision not to fly was based on extensive risk assessments and the absence of definitive measurement of the ash density.

Read more: Money grounds Qantas flights, analyst says | News.com.au

[Captain Gidday]

Not worth the paper it's printed on.

One thing we can say about Rob Mercer : he is a perennial optimist about Air New Zealand. No doubt he has his reasons for never having a bad word for A-NZ.
For example, on 7th April 2010 the following appeared on sharechat.co.nz :

"Air New Zealand (AIR): Bullish analysis by brokers Forsyth Barr and denial that its highly regarded chief executive, Rob Fyfe, was planning to leave the company gave the national airline a strong boost in trading yesterday, while the ongoing attraction of New Zealand as a destination for Australian tourists is further enhanced by the ongoing divergence of the trans-Tasman currencies. Head of research for Forsyth Barr, Rob Mercer, is targeting $1.80 to $1.90 for AIR shares in the next year, and as high as $2.30 over the next two years."

Air New Zealand currently trades at $NZ1.13.

Good call, Rob.

[Wobblywonker]

Look, this preoccupation with the ash cloud has nothing to do with safety, Air NZ, Virgin, or any other airline for that matter.

We all know the real reason why the Aussies are so adamant about it is because they will be damned if they are going to lose the ashes twice in a year

[Dekka]

could it be that the decision for QANTAS not to fly was in some part to off-set the damage of pending industrial action??

[nitpicker330]

It was to gain the sympathy vote with Mum and Dad Australia, it helps them cry poor when the employees are forced to take industrial action.