Air NZ review
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Air NZ review
This is more of what JH departures about
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Air New Zealand is reviewing its regional network just as budget rival Pacific Blue unveils plans to expand its domestic services.
The airline is also warning that some smaller towns risk losing their air link if passenger numbers do not hold up.
Air New Zealand head of short haul airlines Bruce Parton said domestic passenger numbers were down about 3 per cent due to the slowing economy. "So it is at the margins, it's just that our game is at the margins. If in the end we can't get loads, we really do need to pull out of locations."
The review would look to improve synergies between subsidiary regional airlines Eagle Air, Air Nelson and Mount Cook Airline.
That could include a single, heavy maintenance base for the entire turbo-prop fleet, faster airport turnaround times, better matching aircraft types to routes, and streamlining operational functions such as flight planning.
Pacific Blue this week revealed plans to break Air New Zealand's regional monopoly by touring a new 104-seat Embraer 190 E-Jet around several provincial centres to test airport capability and community response.
A planned visit to Palmerston North on Thursday was cancelled after one of the jet's engines was damaged by a bird strike during an attempted takeoff from Hamilton.
Air New Zealand denied industry reports yesterday that it had summoned Embraer representatives to Auckland in response to Pacific Blue's move.
House of Travel retail director Brent Thomas said Pacific Blue's regional plans would lead to huge fare reductions, similar to what had occurred on the main trunk route and trans-Tasman market.
However, Air New Zealand would not necessarily respond by replacing some of its turbo-prop aircraft with jets.
Although jets were more comfortable, scheduling and frequency of services were more important, especially to the business market, Mr Thomas said.
Competition would make the market grow rather than lead to a switch from one airline to another, he said.
Also, with just three Embraers, Pacific Blue could not match Air New Zealand's regional schedule using 50 aircraft.
Mr Parton said the Embraer 190's operating costs were up to 30 per cent higher than the ATR72, making it unsustainable.
Pacific Blue's Adrian Hamilton-Manns countered that the airline had a 40 per cent cost advantage over Air New Zealand. "It works for us."
Mr Parton said a key plank of the review would be to bring maintenance of the three regional aircraft types under one roof to reduce costs and the amount of time aircraft spent on the ground.
Each of the airlines operates a different aircraft type and targets a specific market.
Eagle Air and Air Nelson maintain their own Beech 1900Ds and Bombardier Q300s. Mount Cook Airline's ATRs are maintained by one of Air New Zealand's main engineering facilities. There were several options for a new base outside of the existing maintenance facilities at Hamilton and Nelson. Air New Zealand also had engineering facilities in Blenheim, Dunedin and Invercargill, which could be expanded.
"It is really about marrying a work force and infrastructure and then working with the local communities that want to develop this because it is a huge employment opportunity."
The airlines would continue to be managed from the regions, with no plans to combine them in a single head office.
Mr Parton said no target for savings had been set for the review, which was not aimed at job cuts.
Air Nelson general manager John Hambleton has been appointed project director for the review starting July 1.
#
Air New Zealand is reviewing its regional network just as budget rival Pacific Blue unveils plans to expand its domestic services.
The airline is also warning that some smaller towns risk losing their air link if passenger numbers do not hold up.
Air New Zealand head of short haul airlines Bruce Parton said domestic passenger numbers were down about 3 per cent due to the slowing economy. "So it is at the margins, it's just that our game is at the margins. If in the end we can't get loads, we really do need to pull out of locations."
The review would look to improve synergies between subsidiary regional airlines Eagle Air, Air Nelson and Mount Cook Airline.
That could include a single, heavy maintenance base for the entire turbo-prop fleet, faster airport turnaround times, better matching aircraft types to routes, and streamlining operational functions such as flight planning.
Pacific Blue this week revealed plans to break Air New Zealand's regional monopoly by touring a new 104-seat Embraer 190 E-Jet around several provincial centres to test airport capability and community response.
A planned visit to Palmerston North on Thursday was cancelled after one of the jet's engines was damaged by a bird strike during an attempted takeoff from Hamilton.
Air New Zealand denied industry reports yesterday that it had summoned Embraer representatives to Auckland in response to Pacific Blue's move.
House of Travel retail director Brent Thomas said Pacific Blue's regional plans would lead to huge fare reductions, similar to what had occurred on the main trunk route and trans-Tasman market.
However, Air New Zealand would not necessarily respond by replacing some of its turbo-prop aircraft with jets.
Although jets were more comfortable, scheduling and frequency of services were more important, especially to the business market, Mr Thomas said.
Competition would make the market grow rather than lead to a switch from one airline to another, he said.
Also, with just three Embraers, Pacific Blue could not match Air New Zealand's regional schedule using 50 aircraft.
Mr Parton said the Embraer 190's operating costs were up to 30 per cent higher than the ATR72, making it unsustainable.
Pacific Blue's Adrian Hamilton-Manns countered that the airline had a 40 per cent cost advantage over Air New Zealand. "It works for us."
Mr Parton said a key plank of the review would be to bring maintenance of the three regional aircraft types under one roof to reduce costs and the amount of time aircraft spent on the ground.
Each of the airlines operates a different aircraft type and targets a specific market.
Eagle Air and Air Nelson maintain their own Beech 1900Ds and Bombardier Q300s. Mount Cook Airline's ATRs are maintained by one of Air New Zealand's main engineering facilities. There were several options for a new base outside of the existing maintenance facilities at Hamilton and Nelson. Air New Zealand also had engineering facilities in Blenheim, Dunedin and Invercargill, which could be expanded.
"It is really about marrying a work force and infrastructure and then working with the local communities that want to develop this because it is a huge employment opportunity."
The airlines would continue to be managed from the regions, with no plans to combine them in a single head office.
Mr Parton said no target for savings had been set for the review, which was not aimed at job cuts.
Air Nelson general manager John Hambleton has been appointed project director for the review starting July 1.
The airlines would continue to be managed from the regions, with no plans to combine them in a single head office.
I understand aside from the HR element there are reasons for maintaining separate AOC's.
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Has anyone else heard the rumour that some Mt Chook pilots are facing the chop?
If so is this just negotiation threats similiar to JHs one to downsize the Nelson base or has the review already been done.
If so is this just negotiation threats similiar to JHs one to downsize the Nelson base or has the review already been done.
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Re: Mount Cook - email to pilot group from LOM, saying there were plans to park an ATR from July which would put the roster 7 pilots over and there should be a sign off soon to replace the fixed base sim with a electric motion sim, to be on-line early 2010, that'll create another 7 excess pilots due to not travelling to BKK. So 14 pilots in the firing line. Some junior co's have been rung as well and told to not go making or committing to large financial transactions etc... I guess the new Gm will tackle this when she comes on board in june
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What memo?
The most recent literature/propaganda from Air NZ management was talking about the respect they have for very well funded and organised domestic competitors.
By the end of 2009 there will still be (at least) 3 major operators domestically in NZ. They will all be a little bit poorer.... but still there. We all know how to make a small fortune in aviation....
As for the domestic turbo prop review, it is just a REVIEW. See if things can be done better. That could encompass a massive range of ideas not just those effecting pilots and cabin crew in their daily routines.
The most recent literature/propaganda from Air NZ management was talking about the respect they have for very well funded and organised domestic competitors.
By the end of 2009 there will still be (at least) 3 major operators domestically in NZ. They will all be a little bit poorer.... but still there. We all know how to make a small fortune in aviation....
As for the domestic turbo prop review, it is just a REVIEW. See if things can be done better. That could encompass a massive range of ideas not just those effecting pilots and cabin crew in their daily routines.
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Isn't it funny that dispite a very large proportion of Air NZs profit coming from the three regional carriers,they are looking at making Mt Cook pilots redundent but manage to keep the jet guys at a time when the international operation is returning sweet fanny adams.
Air Nsn are still hiring and I know the excess Mt Cook pilots would be more than welcome to come cruise around in the Dash until things picked up. Hell they are doing it for the Air Force.
Unfortunately Air NZ does not give a toss about its staff outside of the jet fleet. This has been demonstrated by their reaction to the Zeal FAs wanting pay parity with their Air NZ conterparts.
I reckon this review has already been done and JH being the individual that he is has been given this role to slash and burn. The interesting question is what are ALPA going to do about it.
Air Nsn are still hiring and I know the excess Mt Cook pilots would be more than welcome to come cruise around in the Dash until things picked up. Hell they are doing it for the Air Force.
Unfortunately Air NZ does not give a toss about its staff outside of the jet fleet. This has been demonstrated by their reaction to the Zeal FAs wanting pay parity with their Air NZ conterparts.
I reckon this review has already been done and JH being the individual that he is has been given this role to slash and burn. The interesting question is what are ALPA going to do about it.
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Isn't it funny that dispite a very large proportion of Air NZs profit coming from the three regional carriers,they are looking at making Mt Cook pilots redundent but manage to keep the jet guys at a time when the international operation is returning sweet fanny adams.
So don't think that a particular pilot group are being singled out. We all are!
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There is a bit of a difference between forcing people to take their leave and forcing people to leave JMP
BP has stated in the media that he would lay off pilots at Air Nsn and Eagle because they could not fly into uncontrolled airspace during ATC breaks. Even though they fly into unattended feilds everyday.
Now Mt Cook pilots have been told they are facing the chop and he has appointed a hard nose accountant with a reputation for screwing his staff to conduct a review of the regionals. I say thats being singled out.
BP has stated in the media that he would lay off pilots at Air Nsn and Eagle because they could not fly into uncontrolled airspace during ATC breaks. Even though they fly into unattended feilds everyday.
Now Mt Cook pilots have been told they are facing the chop and he has appointed a hard nose accountant with a reputation for screwing his staff to conduct a review of the regionals. I say thats being singled out.
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While i'm sure they have respect for the competition, I'm sure it has more to do with surviving the economic climate and being well placed after the storm has passed.
I think if you were to talk to one of the 8 Mt Cook pilots phoned you might find the company is more being prudent and polite and giving them the worst case scenario rather than saying "your down the road buddy"
And this thing about planning for IF PB was to exit the market...... horse poop. Nothing would change. If anything PB would be well advised to have a plan to fly over 10 aircraft pilots and cabin crew from aust for if air NZ collapsed.
AGAIN.... everyone will still be here at christmas time wondering what the new year is going to bring, who is going to fall over. Some of you probably hoping someone will. But not much is going to change, except large profits, share prices and fortunes will be smaller. Hopefully we can all continue to be paid every fortnight and enjoy catching up on overnights or passing in the terminals.
I think if you were to talk to one of the 8 Mt Cook pilots phoned you might find the company is more being prudent and polite and giving them the worst case scenario rather than saying "your down the road buddy"
And this thing about planning for IF PB was to exit the market...... horse poop. Nothing would change. If anything PB would be well advised to have a plan to fly over 10 aircraft pilots and cabin crew from aust for if air NZ collapsed.
AGAIN.... everyone will still be here at christmas time wondering what the new year is going to bring, who is going to fall over. Some of you probably hoping someone will. But not much is going to change, except large profits, share prices and fortunes will be smaller. Hopefully we can all continue to be paid every fortnight and enjoy catching up on overnights or passing in the terminals.
I love the irony in Air NZ circulating memos about the demise of PB and making contingencies for when they fall over in 2 weeks, 4 weeks ago now.
Which orifice do you put your toothbrush in?
BP has stated in the media that he would lay off pilots at Air Nsn and Eagle because they could not fly into uncontrolled airspace during ATC breaks. Even though they fly into unattended feilds everyday.
I don't think BP has a good record of getting his "facts" right, I think it was obvious to most that this was a tactic to make the effect of the Airways actions look to be far worse than reality in order to force some action politically.
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RE post 12
There is a bit of a difference between forcing people to take their leave and forcing people to leave.
Allocating leave in this manner is one of a number of steps on the road to redundancy and has serious implications. I think you may be underestimating its significance.
I would hope you agree, it is best for all pilots to burn off any surplus leave in an effort to avoid/minimize potential job losses and/or downtraining.
Allocating leave in this manner is one of a number of steps on the road to redundancy and has serious implications. I think you may be underestimating its significance.
I would hope you agree, it is best for all pilots to burn off any surplus leave in an effort to avoid/minimize potential job losses and/or downtraining.
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Re: Mount Cook - email to pilot group from LOM, saying there were plans to park an ATR from July which would put the roster 7 pilots over and there should be a sign off soon to replace the fixed base sim with a electric motion sim, to be on-line early 2010, that'll create another 7 excess pilots due to not travelling to BKK. So 14 pilots in the firing line. Some junior co's have been rung as well and told to not go making or committing to large financial transactions etc... I guess the new Gm will tackle this when she comes on board in june
)Now when and if we park up this ATR in July and when and if they sign off on the sim (looking more like mid 2010 according to the man in charge of it) we will be overstaffed but we also know 12 months is a long time in aviation
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The leave allocation to surplus and excess leave is not really a biggie. Yes, it is the first step in the road to redundancies.
But the companies hand has been forced somewhat. There was a proposal to some of the senior ranks that they could each take some leave.
The idea was if every Captain on the 77 and 74 agreed to take 2 weeks of their retirement leave over the next year there will (currently) be no more down training or possibility of redundancy.
That proposal was rejected. So now annual leave will be allocated. Hopefully to give some gentlemen an experience of retirement, that they might quite like.
Not holding my breath tho. Any over 65's care to comment?
But the companies hand has been forced somewhat. There was a proposal to some of the senior ranks that they could each take some leave.
The idea was if every Captain on the 77 and 74 agreed to take 2 weeks of their retirement leave over the next year there will (currently) be no more down training or possibility of redundancy.
That proposal was rejected. So now annual leave will be allocated. Hopefully to give some gentlemen an experience of retirement, that they might quite like.
Not holding my breath tho. Any over 65's care to comment?
How many over 65's do Air NZ have at the moment? Time to start logging OOR's when the old boys sleep the whole way to destination. Time to retire and enter that rest home. Give the young guys at the bottom of the seniority list with young families a chance...