Wirraway
2nd Sep 2004, 15:53
Fri "The Australian"
Air NZ ad blitz fights profit slide
Steve Creedy
September 03, 2004
AIR New Zealand will launch a multi-million Australian advertising campaign this weekend aimed at bolstering its brand after ferocious trans-Tasman competition forced its biggest overseas market into the red.
Air NZ's services across the Tasman made a small profit in 2002-03.
But group general manager of marketing, networks and sales Norm Thompson confirmed yesterday that the group's trans-Tasman operations made a loss for 2003-04.
"The Tasman is a hugely competitive market . . . and with the pressure on yields and capacity, it's been very difficult," Mr Thompson said.
Since September, Air NZ has boosted capacity on the Tasman by 17 per cent to 125 services, after cutting fares by up to 36 per cent and introducing a new product.
Australia provides more than a third of New Zealand's inbound tourists and Air NZ currently has a capacity share across the Tasman of about 34 per cent.
But the Kiwi carrier faces stiff competition from Qantas and "fifth-freedom" carriers such as Emirates and Thai that can pick up new passengers in Australia and take them to New Zealand.
Mr Thompson said the advertising campaign was not specifically aimed at the increased competition but at bolstering the airline's strength in the Australian marketplace.
But Air NZ appreciated it faced competition from strong brands, particularly Qantas.
He acknowledged that the fifth-freedom carriers posed a "pretty significant" threat in some markets and noted Emirates was now the third-biggest carrier flying into New Zealand.
"With 12 carriers flying the Tasman now it's one of the most competitive routes in the world and we're looking to make sure we not only hold our position but improve it," he said.
The television, print and online ads – the first by the airline to specifically target Australia – are fronted by author and former rugby union star Peter Fitzsimons.
The campaign takes a tongue-in-cheek look at New Zealand attractions and introduces a new slogan: Air New Zealand: Everything you love about New Zealand.
It also capitalises on the airline's "koru", the Maori-style symbol on its aircraft symbolising an unfolding tree fern frond.
Airline officials were unfazed by the fact that Sydney-based Mr Fitzsimons might not have high recognition in cities such as Melbourne, or that he was a journalist – a group whose trustworthiness is usually equated with politicians and used car salesmen.
Air NZ general manager for Australia Michael Reed said Mr Fitzsimons was picked because he was seen by both men and women as a "fun, interesting sort of character".
"We did the market research," Mr Reed said.
"We're not employing him because of his rugby background. It's more that he's got that cheeky Aussie style about him."
Mr Reed said the airline was targeting "interactive" travellers who wanted to visit a destination and explore it under their own steam.
Officials also did not believe Air NZ was suffering any image hangover from its disastrous ownership of Ansett.
Mr Thompson said the carrier intended to expand services from New Zealand to the US with the launch of new long-haul products and the arrival of new planes next year, but it had no intention of reinstating non-stop services from Australia.
He said the airline had found it too difficult to sustain its Sydney-Los Angeles service after it lost the feed from Ansett.
But Air NZ's new service to San Franciso was proving attractive and business between Australia and the US "had pretty much held up".
"We'll serve Australia over Auckland or with a partner," Mr Thompson said.
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Fri "Sydney Morning Herald"
Air NZ gets Aussies on board
By Scott Rochfort
September 3, 2004
Air New Zealand will launch its biggest Australian TV advertising campaign this weekend in a bid to restore the profitability of its trans-Tasman operations.
One week after blaming increased competition on the route from Qantas, Pacific Blue and Emirates for its 8.1 per cent slump in short-haul yields and modest fall in load factors, the airline said its key aim was to "grow its position" over the Tasman.
After recently reporting its sixth full-year loss on the route in seven years, Air NZ's head of marketing, Norm Thompson, said the "multi-million" campaign would triple the airline's current Australian advertising expenditure.
Yet the advertising splurge is not expected to come close to the $NZ11.9 million ($11 million) Air NZ spent in legal costs last financial year trying to get its proposed alliance with Qantas accepted on both sides of the Tasman Sea.
The airline said the first of its 30-second ads would screen from this weekend and would feature "acclaimed" author, rugby union "great" and Sydney Morning Herald columnist Peter FitzSimons.
"By the end of the first month 76 per cent of our target markets will have seen this commercial at least four times," Mr Thompson said.
Using the tagline Everything you love about New Zealand, Mr Thompson said: "We want to position Air New Zealand as New Zealand. Not just a way of getting there.
"Given the size of the [Australian] market and the importance of it to Air New Zealand, it's timely now that we've got our product right and we start to invest in the brand."
While it is nearly a year since Air NZ introduced its lower-fare Tasman Express product on the route, along with boosting flights from 114 to 127 a week and introducing its new fleet of Airbus 320s, the airline denied the ads were in response to falling yields and over-capacity on the route.
Mr Thompson noted the number of Australians flying to New Zealand had already increased 22.5 per cent to 800,000 in the past year.
When asked why Air NZ did not launch the TV ads when it launched its Tasman Express two-class flights last October, the airline's Australian general manager, Michael Reed, said: "The campaign has probably taken a little bit longer than we would have liked to get to market."
With Qantas recently re-launching its I Still Call Australia Home commercials, Singapore Airlines will launch its first Australian TV campaign in two years later this month.
==========================================
Air NZ ad blitz fights profit slide
Steve Creedy
September 03, 2004
AIR New Zealand will launch a multi-million Australian advertising campaign this weekend aimed at bolstering its brand after ferocious trans-Tasman competition forced its biggest overseas market into the red.
Air NZ's services across the Tasman made a small profit in 2002-03.
But group general manager of marketing, networks and sales Norm Thompson confirmed yesterday that the group's trans-Tasman operations made a loss for 2003-04.
"The Tasman is a hugely competitive market . . . and with the pressure on yields and capacity, it's been very difficult," Mr Thompson said.
Since September, Air NZ has boosted capacity on the Tasman by 17 per cent to 125 services, after cutting fares by up to 36 per cent and introducing a new product.
Australia provides more than a third of New Zealand's inbound tourists and Air NZ currently has a capacity share across the Tasman of about 34 per cent.
But the Kiwi carrier faces stiff competition from Qantas and "fifth-freedom" carriers such as Emirates and Thai that can pick up new passengers in Australia and take them to New Zealand.
Mr Thompson said the advertising campaign was not specifically aimed at the increased competition but at bolstering the airline's strength in the Australian marketplace.
But Air NZ appreciated it faced competition from strong brands, particularly Qantas.
He acknowledged that the fifth-freedom carriers posed a "pretty significant" threat in some markets and noted Emirates was now the third-biggest carrier flying into New Zealand.
"With 12 carriers flying the Tasman now it's one of the most competitive routes in the world and we're looking to make sure we not only hold our position but improve it," he said.
The television, print and online ads – the first by the airline to specifically target Australia – are fronted by author and former rugby union star Peter Fitzsimons.
The campaign takes a tongue-in-cheek look at New Zealand attractions and introduces a new slogan: Air New Zealand: Everything you love about New Zealand.
It also capitalises on the airline's "koru", the Maori-style symbol on its aircraft symbolising an unfolding tree fern frond.
Airline officials were unfazed by the fact that Sydney-based Mr Fitzsimons might not have high recognition in cities such as Melbourne, or that he was a journalist – a group whose trustworthiness is usually equated with politicians and used car salesmen.
Air NZ general manager for Australia Michael Reed said Mr Fitzsimons was picked because he was seen by both men and women as a "fun, interesting sort of character".
"We did the market research," Mr Reed said.
"We're not employing him because of his rugby background. It's more that he's got that cheeky Aussie style about him."
Mr Reed said the airline was targeting "interactive" travellers who wanted to visit a destination and explore it under their own steam.
Officials also did not believe Air NZ was suffering any image hangover from its disastrous ownership of Ansett.
Mr Thompson said the carrier intended to expand services from New Zealand to the US with the launch of new long-haul products and the arrival of new planes next year, but it had no intention of reinstating non-stop services from Australia.
He said the airline had found it too difficult to sustain its Sydney-Los Angeles service after it lost the feed from Ansett.
But Air NZ's new service to San Franciso was proving attractive and business between Australia and the US "had pretty much held up".
"We'll serve Australia over Auckland or with a partner," Mr Thompson said.
=======================================
Fri "Sydney Morning Herald"
Air NZ gets Aussies on board
By Scott Rochfort
September 3, 2004
Air New Zealand will launch its biggest Australian TV advertising campaign this weekend in a bid to restore the profitability of its trans-Tasman operations.
One week after blaming increased competition on the route from Qantas, Pacific Blue and Emirates for its 8.1 per cent slump in short-haul yields and modest fall in load factors, the airline said its key aim was to "grow its position" over the Tasman.
After recently reporting its sixth full-year loss on the route in seven years, Air NZ's head of marketing, Norm Thompson, said the "multi-million" campaign would triple the airline's current Australian advertising expenditure.
Yet the advertising splurge is not expected to come close to the $NZ11.9 million ($11 million) Air NZ spent in legal costs last financial year trying to get its proposed alliance with Qantas accepted on both sides of the Tasman Sea.
The airline said the first of its 30-second ads would screen from this weekend and would feature "acclaimed" author, rugby union "great" and Sydney Morning Herald columnist Peter FitzSimons.
"By the end of the first month 76 per cent of our target markets will have seen this commercial at least four times," Mr Thompson said.
Using the tagline Everything you love about New Zealand, Mr Thompson said: "We want to position Air New Zealand as New Zealand. Not just a way of getting there.
"Given the size of the [Australian] market and the importance of it to Air New Zealand, it's timely now that we've got our product right and we start to invest in the brand."
While it is nearly a year since Air NZ introduced its lower-fare Tasman Express product on the route, along with boosting flights from 114 to 127 a week and introducing its new fleet of Airbus 320s, the airline denied the ads were in response to falling yields and over-capacity on the route.
Mr Thompson noted the number of Australians flying to New Zealand had already increased 22.5 per cent to 800,000 in the past year.
When asked why Air NZ did not launch the TV ads when it launched its Tasman Express two-class flights last October, the airline's Australian general manager, Michael Reed, said: "The campaign has probably taken a little bit longer than we would have liked to get to market."
With Qantas recently re-launching its I Still Call Australia Home commercials, Singapore Airlines will launch its first Australian TV campaign in two years later this month.
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