The end of Air NZ

[kavu]

Air NZ to make changes to Pacific routes
25 October 2006


Air New Zealand will make schedule changes to some of its Pacific flights next year, following a review of non-profitable routes.

From April 2, the airline will suspend its Rarotonga-Papeete-Los Angeles services, which currently operate three times per week.

It will instead code share with Air Tahiti Nui on four of its daily Papeete-Los Angeles services to maintain links with London.

It will also reinstate a weekly non-stop service between Rarotonga and Los Angeles to keep links between the Cook Islands and North America.

That service will fly twice a week during the peak April to July season and possibly the Christmas to February period.

Air NZ will also code share with Air Tahiti Nui on a non-stop service between Auckland and Papeete four times a week.

Regular services between Auckland and Rarotonga will continue as normal.

Group general manager of short haul airlines, Norm Thompson, said that despite the historic links Air NZ had with the Pacific, it could not justify the current level of service through Papeete and Rarotonga from Los Angeles.

He noted Air New Zealand had been flying the Coral Route for over 50 years and the importance of visitors from the Northern Hemisphere to both French Polynesia and the Cook Islands.

Also today Air NZ announced changes to the days of the week it flies its Nadi to Los Angeles route.

It will fly three days a week and the other four will be operated by Air Pacific under a code share agreement, subject to government approval.

NZPA

[kavu]

Well is this the end of Air NZ International Operations. With all the industry dispute within the airline and with the above article you have to wonder what is happening!!!

Are they goin gto pull out of London next? Or LA?

Some big shake up is happening within AirNZ and the worst is yet to come I think.

[Enema Bandit's Dad]

Could it be karma?

[belowMDA]

Well in fairness, what choice did they have?
On this route they were competing with a heavily subsidised government airline. They are also restricted in how many people/services they can take out of Tahiti.
We have a government in NZ that is more interested in maintaining a dogma, if you like, of free unrestricted trade and they will not treat other countries how we are treated by them. So consequently ATN has unrestricted to the NZ market while ANZ gets the scraps. And we sit there and take it in the ass:mad:
What we need is for the pollies to sit up and take notice that the world does not always work in the touchy-feely ideal that they keep dreaming of.
It just makes me livid to think of all the **** we have taken from the French with no effort to make things even.
Cue some french bashing maybe?

[slamer.]

Below MDA, nice summary.

I believe SIN went as a result of similar practices and some of the Tasman may also go as a result of the unchecked EK capacity dumping.


Re: the French. Funny.. the amnesia when a rich western nation carries out an act of Terrorism in a friendly port. They should be vilified for their evil act... but we are still waiting ( whats worse, the act or choosing to ignor it)


Kavu.... please enlighten us on this sweeping statement ...........:rolleyes:

[kavu]

slamer
No disrespect but am I not aloud to talk my mind here? After all this is a rumour network.:rolleyes:
I still think that Air NZ is up to something... something big (for Air NZ) maybe downsizing even futher? I have noticed a few planes parked on the ground in CH and AA for extended periods of time.... and not waiting for engineering either.
For an airline that was apparently doing so well a few years ago to then change (in my view) to a low cost carrier (Express), then dropping first class now dropping routes while still making money, it just seems rather strange that's all.
Well that's my view at least.
By the way I'm not talking domestic, I'm only talking international here. Domestic is doing alright. It has too cos nobody else is working the routes like the link carriers.

[max autobrakes]

Making way for a JetStar takeover probably .:}

[slamer.]

Air NZ predicts bigger profit

Thursday October 26, 2006
By Jenny Keown

Air New Zealand says it is on track to beat last year's $96 million profit but analysts are sceptical about the airline's forecast.
If the lower fuel prices and current operating conditions persisted, profit would increase, Air New Zealand chairman John Palmer told its annual general meeting in Auckland yesterday.
"I do not want to comment any further than that," he said.
But Goldman Sachs JBWere analyst Peter Sigley said it was "too early to say" whether the airline would become more profitable because fuel prices were still very high.
"Our view is that oil prices rebound over time," said Sigley.
Air New Zealand had to be very careful about how it hedged against any rise in fuel prices, he said.
Palmer conceded the growth plans were "ambitious" and "not without risk" considering the volatility of fuel prices. But the company's balance sheet was in a solid state and in a good position to grow.
Air New Zealand's profits almost halved to $96 million this year but dividends were stable. The board expected dividends to stay the same next year.
"Dividend levels were maintained despite the fall in profitability, reflecting the board's confidence in the financial position of the company," said Palmer.
The airline's revenue grew by 5 per cent to $3.8 billion in the last financial year and its global online revenue increased 43 per cent to $839 million.
Palmer said he expected global online revenue to increase to $1 billion in 2007
The company also announced yesterday that it was proposing a code-share arrangement with Air Pacific.
Under the deal, Air New Zealand and Air Pacific would operate a daily schedule between Fiji and Los Angeles, with connections to London.
Palmer said the airline had engaged in the "highly public, often painful, but necessary task" of making sure it was in a state to grow, reducing engineering and corporate staff. But at the same time it had grown the business, he said.
Air New Zealand's second daily service to Britain via Hong Kong is to begin on Saturday and early next month it will launch its non-stop service to Shanghai, with connections to elsewhere in China and in Europe.
The airline had also bought four new 50-seater Q300s, had 17 Q300s on order and had refitted its Boeing 747 fleet.
Palmer said the airline expected to be more involved in New Zealand's tourism strategy.
"There are a number of gaps in the tourism strategy at the moment. We are a major operator, and we expect to be more involved in that because we think there are gains to be made."
Chief executive Rob Fyfe said an increase in yields set a strong foundation for further growth and figures from the Star Alliance showed customer satisfaction levels were high.
But the airline was still managing the dispute with staff in its airport services division which was "in crisis".
Fyfe said 45 per cent of the revenue for airport services came from third-party airlines and its competitors had more flexible employment deals and had undercut costs by 20 per cent.
"If we don't rapidly address our lack of competitiveness, we will not only lose our third-party airline customers but we will place Air New Zealand at a disadvantage."
The airline also yesterday disclosed its fuel hedging programme.

[pakeha-boy]

slamer....hopefully this is sabre rattling etc etc....bought shares in AirNZ right after 911 for less than .50c ..now shes up around $1.43(since I last checked) ..........AirNZ needs to take care of its stock holders for sure :}

[kavu]

So if AirNZ are making sooo much profit, why are they trying to get rid of staff in all areas? Didn't they restructure themselves properly a few years ago when the government had to bail them out and had Ralph Norris in charge.

They're getting rid of assets that are making them money - the Engineering which brought in a huge amount of money cos the new manager doesn'twant to go looking for work unlike his old manager who could bring in the work.

Ground and baggage handlers are now getting the chop and more middle management are likely to follow.

It seems a bit odd that if Air NZ were to split the company then they would try to reduce the price of it's share before doing so. By increasing the share price they just make it harder to split the company. That's if this is there intention.

Well that's my thoughts on the matter. I could be wrong but again I say - what does the current board at Air NZ think it is doing?

Hang on a minute - just had a thought. (I know it's rare, don't laugh too hard)

If they're trying to make the company look good (in the books at least) with increased profits then they are probably looking at trying to sell the company.

Thoughts, comment?

[slamer.]

PB ... around NZD $1-53 +/-, seems to be on a steady increase for now



Could it be karma?

Considering the events of 1989, it's a bit risky mentioning "karma" in relation to post 1989 ANSETT... wouldnt you agree??.....;)

[Cloud Cutter]

kavu

I think you'll find that the recent increase in share price has little to do with the management of Air New Zealand, and a lot to do with the reduction in fuel prices, or more importantly the outlook. These are some pretty fickle shareholders.

[Split Flap]

The End of Air NZ...

Well history may, (I hope not) prove me wrong but I think Air NZ is in a fairly good position at the moment given that the airline is still turning a profit (albeit a mediocre one), and the fact that they have spent money upgrading their fleet, restructured, and with jet fuel at the current levels.
The reason that Air NZ is pulling out of routes is due to the fact thay are competing on an unfair playing field with their competitors that are allowed free reign into NZ under our open skies agreement. How many other countries allow a foreign flag carrier to fly domestically?
Sometimes the favour is not returned...
Air NZ is no cute puppy dog here as in the past it has weilded the big boy stick, when it has been able, but if you are looking for the reason why it is pulling out of routes then competiton from airlines with supportive goverment legislation would be the first place I would look. Some of the routes that have been pulled out of have recently required a 105% load factor to break even due to competion, if you cant beat em, join em as they say, with a codeshare. Not as many jobs for the lads but I think getting pilots jobs is not at the forefront of managers minds when making these sorts of decisions.
Air NZ needed bailing out.... due to an unsucsessfull foray into the Australian domestic market as I recall.... I seem to remember one of the parties pulling out of an agreement at the last minute, allowing unresticted air trade between and within two countries.... Perhaps that was why Airnz felt it had to buy an australian airline?
At least the NZ goverment stupmed up with sum cash for that mess, probably felt a little guily there, as the legislation in place did not allow the airline to look overseas for cash. Would rather my tax money went on proping up the airline and keeping 10,000 odd people in work than another treaty claim...:*
Below MDA, perhaps we could launch some spuds from the boat towards france.... Might make us feel better...:ok:

[What time is ECT?]

KAVU, you made mention of an aircraft on the ground for an extended period. Here's how.

A 747 was undergoing an extensive interior re-fit and was due to be taken to an airbridge a few minutes late at the end of the re-fit. Another 747 was then taken into the hanger for an interior re-fit.

The <<unnamed personage>> in charge of OPs looks out at the airbridge to find no 747 for his pax. Now slightly disturbed, he blitzes it to the hanger to see a 747 up on blocks with pieces of it around the floor. Was told this aircraft would be ready in about two weeks in answer to question.

Now in a real panic, he cancels the flights for the aircraft which is now sitting at the gate ready to board. The mistake was not noticed until a week later!

So this is how to lose an aircraft for a week.
Just a rumour, but it came from an avionics apprentice.
ECT?

[WLGHilton]

I wonder how ANZ are doing on the Tasman..? There seems to be a lot of competition on it.

[7378FE]

How many other countries allow a foreign flag carrier to fly domestically?

I'm asuming you are referring to QF operating domestic services in NZ?

Air New Zealand are free to operate Domestic services within Australia.

Oops........been there, done that, I think they called it Ansett:hmm:

7378FE

[alangirvan]

Qantas NZ domestic services are operated by Jetconnect. QF just markets them

[slamer.]

http://smileys.smileycentral.com/cat/36/36_11_6.gif

7378FE.......you obviously weren't around in 1995.

Think you will find, Ansett was NEVER Air NZ's first choice.