Ralph Norris (CEO of Air NZ) - You are the weakest link - goodbye!

[Colonel Blink]

Did anyone out there in Kiwi land see last nights Kim Hill show?

Ralph Norris was on the show to discuss the trans-Tasman allegiance, defending this to the hilt and informing us of the reasons why. To our Aussie brethren, you missed a comic jewel in the making!

Firstly, boy did he squirm. Kim Hill laid into him big style and only let him off the hook at the end. What was truly amazing was the ineptitude of this bloke. Consider these gems

On why the merger is necessary

We need to work with Qantas because they are getting A380's, which we cannot afford, and we need to use their hub at Singapore as a means of getting passengers from NZ to Europe.

Really! Does this mean Air NZ can't link with their Star Alliance partner SIA for this, or is it that he is predicting the world will only want to be passengers on A380's?

On the Oneworld/Star Alliance issue

That won't be a problem; we'll work through that one when we get to it. Passengers will be able to get points for whatever alliance they belong to. Anyway, we could look at other options.

Like what? I am sure all the other Star/Oneworld alliance members will be happy with this.

On Trans Tasman services

Actually Air NZ offer a fuller range of services, which is why Qantas want to be involved. Our routes are more reliable which is why Qantas want to work with us

NB I am paraphrasing these

There is no way we will be anti-competitive and there will be no priice rises. Indeed we anticipate reducing fares

On Freedom Air

There is no way that we will be selling Freedom, it is an integral part of Air NZ and will stay that way.

and Kim Hill say

So what if the Commerce Commission says you have to release it from your control to have the arrangement with Qantas

We'll have to look at that then if that's the case

(and the look on his face was "5hit, never thought of that!)

What perplexed me most was that someone who clearly did NOT have much idea about airline issues is running a national airline. For the whole 30 minutes he instilled no confidence for the viewer/customer. Kaptim M's thread (http://www.pprune.org/forums/showthread.php?s=&threadid=93944) perhaps doesn't paint the full picture. The problem with Air NZ is now truly apparent, and is the same in many areas within NZ -

MISMANAGEMENT!

My belief is that Air NZ is doomed.

[Ralph the Bong]

I is a shame that political expedience by Helen prevented a life line being thrown to AirNZ by SQ 18 months ago. I empathise with staff, who now face an uncertain future.

[Lodown]

Colonel, I think you explained quite succintly why the merger is necessary in your very last sentence.

[Colonel Blink]

Lodown, I think it depends on with whom they merge. My belief is if they forge an alliance with Qantas then my belief is they will become a subsidiary. If they don't merge with someone they are finished.

On a side note, if they do merge with Qantas then it could be the end of the Star Alliance.

[Wirraway]

http://www.scoop.co.nz/

Saving Air NZ: Time For Palmer To Go From Air NZ!
Wednesday, 2 July 2003, 3:03 pm
Opinion: Save Air New Zealand

Time For John Palmer To Go From AirNZ!
Either Quit Sulking – Or Get Out Of The Kitchen
Update #3 Of The Save Air New Zealand Campaign

http://www.saveairnz.org.nz

John Palmer is threatening to withdraw AirNZ from international operations if its merger with Qantas is thwarted.

He backs this threat with a mess of contradictory claims. He confirms Air New Zealand is going well locally, but claims that its international services are "lucky" and this isn't sustainable.

Meanwhile he wants to prove at the Commerce Commission that the merger isn't, "too anti-competitive ".

This is muddled thinking. The merger is ONLY about reducing competition there is NO other reason for it. There are no economies of scale, there are no synergy benefits, there is no 1+1=3. The deal purely relies on its ability to reduce capacity on New Zealand services and charge more.

It is time John Palmer had a cup of tea and maybe spent a bit more time pruning his Kiwifruit bushes.

It is absurd for a company chairman to spend his time constantly bagging his own company. According to Palmer everything good that happens to Air New Zealand is "luck". Always failure is just over the horizon.

John, give your staff some credit, show a little hope.

The biggest ever melt down in the aviation industry happens and Air New Zealand sails on unscathed, yet you don't think it is because Air New Zealand is a good company. It just got lucky?

Time to move on and let someone else with a bit more enthusiasm and confidence in Air New Zealand to take over.


***** ENDS *****

[Buster Hyman]

if they do merge with Qantas then it could be the end of the Star Alliance.


ROFLMAO

SQ & UA etc, etc must be SHlTTING their pants at this one!!!!!:} :} :} :}

[Kiwilad]

with regards to air nz having to sell freedom to vb, I find this a bit hard to understand, of course vb want freedom as it means they loose the only thing that can hurt them and at the same time gain a good foothold into nz.
It is a little like asking vb to give all corporate customers to qantas and airnz becoz that is their market??
Competition is good, but some markets can't support competition, nz is one of those markets where there will always be a dominant player airnz or airnz and qantas due to the fact that the total market available is just not there to support 2-3 airlines in nz trying to match each others capacity.
I also saw the kim hill show and I thought she was a bit of a raving looney. It amazes me that he sat there while she was going on and on about something and would keep butting in on his answers, I guess the longer she kept babbling the less time he spent in the spot light.
anyways go the merger will be like ole times again.

[VeeBee]

Cant really see what all the fuss is about. Some years ago the two airlines operated an "airshare" scheme on the tasman where they saved themselves duplication of services and sold each others flights as their own. I dont remember why it was terminated but am pretty sure that it had nothing to do with any competition issues.

[kiwipilot02]

If norris is really that much in love with Freedom Air why dont they get more aircraft ?They had 2 flights a week to sydney from Dunedin this time last year now its 1 a week, the capacity going to the chch-brisbane Freedom service.They are there not to expand just to stifle competion..Anyone flying domestic in nz should try Qantas- jetconnect,great crew, great food ,lcd screen tv,no stuck up galley hags offering just tea coffee and dried up biscuits , and for around the same dollars....