Trans Tasman Blood bath?
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Trans Tasman Blood bath?
The Sydney Morning Herald today reports
I believe that V Australia are also planning Sydney/Auckland/Sydney with a daily 777. That will sure dump a lot of cheap seats if the info is true!
Airlines fly into headwinds on Tasman route
QANTAS and Air New Zealand are preparing for bloodshed on the highly competitive trans-Tasman route, as they face the triple whammy of a looming price war, other rivals increasing flights and an economy in recession.
In a risky move for the national carrier, Air NZ has slashed fares on its most crucial route, just over a month before Virgin Blue's subsidiary, Pacific Blue, begins nine flights a week between Sydney and Auckland. The new services will add about 300,000 seats a year to the route.
The Sydney-Auckland route is already hotly contested by Dubai's Emirates, Chile's LAN and Aerolineas Argentinas, as well as Qantas and Air NZ. Capacity could increase further once Emirates begins daily flights of its A380 super-jumbo in February.
But Etihad has doused speculation it is about to follow its main rival, Emirates, across the Tasman. "We have absolutely no plans to fly to Auckland," an Etihad spokesman said on Friday.
Industry insiders believe Air NZ's decision to reduce one-way fares for flights from Sydney to Auckland by about quarter is a risky move because of doubt about whether any increase in traffic will cover the cost of reducing prices, particularly in the leisure market.
The cut to fares is primarily to protect market share as Virgin Blue redeploys capacity from the Australian domestic market to the trans-Tasman via Pacific Blue.
Air NZ admitted that conditions in the Tasman market would become "increasingly challenging" due to the surge in capacity from rivals. The carrier will announce its full-year earnings in Auckland tomorrow.
Despite an overall increase in the number of seats filled last month, the carrier reported a slight dip in its load factor (a measure of seats occupied by paying passengers) to 76.9 per cent for the Tasman and Pacific routes last month.
The extent to which the fare cuts and increased capacity affect Air NZ's revenue will depend on Qantas's response to the lower fares. "Whether it is big or small will depend on how hard Qantas comes back to respond to Air NZ's pricing moves," an insider said.
Pressure on the route comes as the NZ economy is officially about to slide into recession, and growth in Australia slows.
Macquarie Equities estimates Virgin's decision to redeploy aircraft to the trans-Tasman market will increase capacity between Australia and NZ by about 7 per cent, after taking into account a small increase by Air NZ and by Emirates flying the A380.
"Virgin Blue's decision is likely to be seen as a better financial option than purely parking the planes, while the additional capacity on the Sydney-Auckland route will place downward pressure on yields for both Air NZ and Qantas," Macquarie said.
QANTAS and Air New Zealand are preparing for bloodshed on the highly competitive trans-Tasman route, as they face the triple whammy of a looming price war, other rivals increasing flights and an economy in recession.
In a risky move for the national carrier, Air NZ has slashed fares on its most crucial route, just over a month before Virgin Blue's subsidiary, Pacific Blue, begins nine flights a week between Sydney and Auckland. The new services will add about 300,000 seats a year to the route.
The Sydney-Auckland route is already hotly contested by Dubai's Emirates, Chile's LAN and Aerolineas Argentinas, as well as Qantas and Air NZ. Capacity could increase further once Emirates begins daily flights of its A380 super-jumbo in February.
But Etihad has doused speculation it is about to follow its main rival, Emirates, across the Tasman. "We have absolutely no plans to fly to Auckland," an Etihad spokesman said on Friday.
Industry insiders believe Air NZ's decision to reduce one-way fares for flights from Sydney to Auckland by about quarter is a risky move because of doubt about whether any increase in traffic will cover the cost of reducing prices, particularly in the leisure market.
The cut to fares is primarily to protect market share as Virgin Blue redeploys capacity from the Australian domestic market to the trans-Tasman via Pacific Blue.
Air NZ admitted that conditions in the Tasman market would become "increasingly challenging" due to the surge in capacity from rivals. The carrier will announce its full-year earnings in Auckland tomorrow.
Despite an overall increase in the number of seats filled last month, the carrier reported a slight dip in its load factor (a measure of seats occupied by paying passengers) to 76.9 per cent for the Tasman and Pacific routes last month.
The extent to which the fare cuts and increased capacity affect Air NZ's revenue will depend on Qantas's response to the lower fares. "Whether it is big or small will depend on how hard Qantas comes back to respond to Air NZ's pricing moves," an insider said.
Pressure on the route comes as the NZ economy is officially about to slide into recession, and growth in Australia slows.
Macquarie Equities estimates Virgin's decision to redeploy aircraft to the trans-Tasman market will increase capacity between Australia and NZ by about 7 per cent, after taking into account a small increase by Air NZ and by Emirates flying the A380.
"Virgin Blue's decision is likely to be seen as a better financial option than purely parking the planes, while the additional capacity on the Sydney-Auckland route will place downward pressure on yields for both Air NZ and Qantas," Macquarie said.
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syd/mel/bne- chch with the 777 would be good,
a whole lotta freight outa chch but with only 2 daily widebody services
to sydney plus the qantas freight flight, not a lot of space for it
a whole lotta freight outa chch but with only 2 daily widebody services
to sydney plus the qantas freight flight, not a lot of space for it
Originally Posted by Cypher
Why would Virgin want to compete against itself on the Tasman with Pac Blue and V Australia?
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Solution?
This was talked about in crew room today - not that anyone admits to reading/posting on prune.
A grey bearded, rather grizzly looking/sounding six-bladed Koru prop driver, banged his hands on table and stated,
"The bloody government owns us, they need to help protect us! Simply deny these new trans tasman bas
ds any airlines landing rights!"
To which the response was, "Impossible they don't own the airports!"
To which 'Grizzly', by now adding a rather V-Aus red colour to his face added, "Then how did they manage to stop Dubai buying into Auckland, and by so doing stopped them creating the only other Hub apart from Dubai, for the world's best airline! Plus stop goodness knows how many bucket loads of investment on this tiny blip in the southern seas!!!"
To which a rather fresh faced FO - also a six bladed Koru prop driver - responded with, "Because Emirates Air New Zealand doesn't sound right!!"
Most all of those gathered were silently agreeing, but also pondered what the next ride 'Grizzly' and 'The Pup' had together, might be like up front!!!!
A grey bearded, rather grizzly looking/sounding six-bladed Koru prop driver, banged his hands on table and stated,
"The bloody government owns us, they need to help protect us! Simply deny these new trans tasman bas
ds any airlines landing rights!"To which the response was, "Impossible they don't own the airports!"
To which 'Grizzly', by now adding a rather V-Aus red colour to his face added, "Then how did they manage to stop Dubai buying into Auckland, and by so doing stopped them creating the only other Hub apart from Dubai, for the world's best airline! Plus stop goodness knows how many bucket loads of investment on this tiny blip in the southern seas!!!"
To which a rather fresh faced FO - also a six bladed Koru prop driver - responded with, "Because Emirates Air New Zealand doesn't sound right!!"
Most all of those gathered were silently agreeing, but also pondered what the next ride 'Grizzly' and 'The Pup' had together, might be like up front!!!!
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I wouldn't count on Emirates and the Sheik's saving anyone. Their only interest is the bottom line and promoting their hub, Dubbo (Dubai). Indeed they are probably more responsible than anyone for the capacity dumping on the Tasman.
Goodbye loss leaders
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Air New Zealand will still be here making a profit long after Ansett Blue has gone.
P.S - AirNewZealand, isnt as cosy as you think.......
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Yes, Yellow rocket what have you been smoking ?
Air New Zealand has already made bucketloads of money (or guaranteed their own survival for the time being) by sending Ansett Airlines into the dirt and taking all the money offshore, by the way has anyone seen that scum Toomey lately ?
Air New Zealand has already made bucketloads of money (or guaranteed their own survival for the time being) by sending Ansett Airlines into the dirt and taking all the money offshore, by the way has anyone seen that scum Toomey lately ?
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I dont think NZ in that great of a position.
They made a similar profit to Virgin Blue of around $198m (NZ) Vs around $160m for DJ.
The difference is DJ had revenue of around $2b AUD whereas NZ have revenues of something like $3.2b (NZ)
They made a similar profit to Virgin Blue of around $198m (NZ) Vs around $160m for DJ.
The difference is DJ had revenue of around $2b AUD whereas NZ have revenues of something like $3.2b (NZ)
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Big difference between PB and ANZ. ANZ is 80ish% owned by the govt. The pack of socialists who run this country will just keep throwing money at their "nationalised airline". PB (read VB) doesn't have a significant shareholder to cover operating losses.
ANZ has that same old problem they have always had. No on-carriage in oz. They only have the smallest market on the Tasman, ie just NZ.
Same old same old!
ANZ has that same old problem they have always had. No on-carriage in oz. They only have the smallest market on the Tasman, ie just NZ.
Same old same old!
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Originally Posted by SkyStar320
after he screwed ansett with all its money & assets
Ansett had been thoroughly screwed of any assets it possessed before ANZ was even remotely involved. Airworthy airframes sold back to the leasing company, replaced with marginal (at best) airframes, then the whole apple-cart tipped up by CASA regulatory action. Collusion? Don't know that any evidence exists, but when it stinks like sh!t...
ANZ's sole mistake was failing to do a comprehensive 'due diligence' in the rush to get access to AUS domestic routes -bought on by the failure of the AUS govt to honour its CER committment to allowing ANZ access to AUS domestic routes.
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RadioSaigon, you have your views but.....
May I suggest you reading both the creditors reports and release of information before you blab out wrongful facts
Why in the days after the collapse, Air NZ were quickly offering US$150m to settle and claims against them as they were running cold........
May I suggest you reading both the creditors reports and release of information before you blab out wrongful facts
Why in the days after the collapse, Air NZ were quickly offering US$150m to settle and claims against them as they were running cold........