Tasman crossing bruises Air NZ
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Tasman crossing bruises Air NZ
Tues "Sydney Morning Herald"
Tasman crossing bruises Air NZ
By Scott Rochfort
September 28, 2004
Air New Zealand continued to feel the strain of increased trans-Tasman competition yesterday after reporting a slump in short-haul yields for August.
Despite increasing the percentage of seats on flights to Australia, the airline blamed lower air fares and increased capacity on the route for a 9 per cent fall in domestic and trans-Tasman yields for the first two months of this financial year.
Air NZ shares fell 1c to a six-month low of $1.68, one week after the NZ High Court rejected a proposal for Qantas to buy a 22.5 per cent stake in the carrier.
Since the entry of Emirates Airline a year ago, total capacity on the trans-Tasman route has increased by one-third. That also includes the entry of Pacific Blue in late January and Qantas and Air NZ increasing their number of services.
Helped by the recent boost in 747 services to Melbourne, Air NZ increased its capacity by 19 per cent in the year to August.
Air NZ chief executive Ralph Norris recently said economy one-way prices on the route, which are as low as $NZ99 ($92.50), would have to increase to $NZ190 to become sustainable.
Yet Air NZ is not the only airline hurting.
Bureau of Transport and Regional Economics data published last week showed Emirates only filled about 21 per cent of its seats from Australia to NZ in June.
This compared to Qantas's 76 per cent, Air NZ's 64 per cent and Virgin Blue's 61 per cent.
For June, Emirates reported the second-lowest load factor out of Australia, after Garuda Indonesia's 8.8 per cent to NZ.
Emirates, however, maintains it has no intention of dropping the route. Given trans-Tasman freight rates are among the highest in the world, Emirates' Australian boss, Eddie Lim, recently said the airline had to have 40 per cent load factors to break even on the route.
Among the best load factors for any route was from Australia to the US and the Singapore Government is pushing Australia to open up the route to Singapore Airlines.
On flights to the US, Qantas enjoyed load factors of 81 per cent while United Airlines filled 89.3 per cent of its seats.
Qantas controls about 75 per cent of the capacity on the route.
The American Express Airfare index for the Asia-Pacific found air fares on main city domestic routes in Australia rose 10.9 per cent in the September quarter.
The figure does not include the $10 fuel surcharge Qantas, Jetstar and Virgin Blue now charge for one-way flights.
===========================================
Tasman crossing bruises Air NZ
By Scott Rochfort
September 28, 2004
Air New Zealand continued to feel the strain of increased trans-Tasman competition yesterday after reporting a slump in short-haul yields for August.
Despite increasing the percentage of seats on flights to Australia, the airline blamed lower air fares and increased capacity on the route for a 9 per cent fall in domestic and trans-Tasman yields for the first two months of this financial year.
Air NZ shares fell 1c to a six-month low of $1.68, one week after the NZ High Court rejected a proposal for Qantas to buy a 22.5 per cent stake in the carrier.
Since the entry of Emirates Airline a year ago, total capacity on the trans-Tasman route has increased by one-third. That also includes the entry of Pacific Blue in late January and Qantas and Air NZ increasing their number of services.
Helped by the recent boost in 747 services to Melbourne, Air NZ increased its capacity by 19 per cent in the year to August.
Air NZ chief executive Ralph Norris recently said economy one-way prices on the route, which are as low as $NZ99 ($92.50), would have to increase to $NZ190 to become sustainable.
Yet Air NZ is not the only airline hurting.
Bureau of Transport and Regional Economics data published last week showed Emirates only filled about 21 per cent of its seats from Australia to NZ in June.
This compared to Qantas's 76 per cent, Air NZ's 64 per cent and Virgin Blue's 61 per cent.
For June, Emirates reported the second-lowest load factor out of Australia, after Garuda Indonesia's 8.8 per cent to NZ.
Emirates, however, maintains it has no intention of dropping the route. Given trans-Tasman freight rates are among the highest in the world, Emirates' Australian boss, Eddie Lim, recently said the airline had to have 40 per cent load factors to break even on the route.
Among the best load factors for any route was from Australia to the US and the Singapore Government is pushing Australia to open up the route to Singapore Airlines.
On flights to the US, Qantas enjoyed load factors of 81 per cent while United Airlines filled 89.3 per cent of its seats.
Qantas controls about 75 per cent of the capacity on the route.
The American Express Airfare index for the Asia-Pacific found air fares on main city domestic routes in Australia rose 10.9 per cent in the September quarter.
The figure does not include the $10 fuel surcharge Qantas, Jetstar and Virgin Blue now charge for one-way flights.
===========================================
Air NZ August load factor rises to 73 per cent
NZ Herald
27.09.2004 4.40 pm
Air New Zealand said on Monday its total August passenger load factor increased to 73 per cent, up 0.7 percentage points on the same month a year ago.
Air NZ said August revenue passenger kilometres rose 12.1 per cent to 1.86 billion, while available seat kilometres were up 11.0 per cent on a year earlier to 2.54 billion.
"Passengers carried for the Air New Zealand group were up 10.4 per cent on the previous comparative period, driven by growth in both the short haul and long haul arenas," the company said in a statement.
Group yield for the first two months of the 2005 financial year fell 5.2 per cent, adjusted for foreign exchange.
The load factor on the airline's short haul routes -- which cover domestic, Pacific, and Australian services -- was up 0.6 per cent to 70.3 per cent.
Long haul routes to North America, Asia and Europe, had a 0.9 per cent rise in load factor to 74.9 per cent, with a fall on services to Asia offset by a rise in the load factor on North Amercian and European services.
Air NZ shares, majority owned by the NZ government since an NZ$885 million rescue package finalised in 2002, last traded flat at NZ$1.82.
- REUTERS
-halas
NZ Herald
27.09.2004 4.40 pm
Air New Zealand said on Monday its total August passenger load factor increased to 73 per cent, up 0.7 percentage points on the same month a year ago.
Air NZ said August revenue passenger kilometres rose 12.1 per cent to 1.86 billion, while available seat kilometres were up 11.0 per cent on a year earlier to 2.54 billion.
"Passengers carried for the Air New Zealand group were up 10.4 per cent on the previous comparative period, driven by growth in both the short haul and long haul arenas," the company said in a statement.
Group yield for the first two months of the 2005 financial year fell 5.2 per cent, adjusted for foreign exchange.
The load factor on the airline's short haul routes -- which cover domestic, Pacific, and Australian services -- was up 0.6 per cent to 70.3 per cent.
Long haul routes to North America, Asia and Europe, had a 0.9 per cent rise in load factor to 74.9 per cent, with a fall on services to Asia offset by a rise in the load factor on North Amercian and European services.
Air NZ shares, majority owned by the NZ government since an NZ$885 million rescue package finalised in 2002, last traded flat at NZ$1.82.
- REUTERS
-halas
