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Air New Zealands Profit Announcement

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Air New Zealands Profit Announcement

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Old 29th Aug 2014, 07:55
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Buddy of mine works at Auckland Domestic doing the ground handling.
He confirmed what Cactus was saying.
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Old 29th Aug 2014, 08:27
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Originally Posted by ozziekiwi
Surprised that no comment has been made regarding the National Carriers profit and surge in the share price !!
No surprise, their service and flights are a pleasure. I'd fly Air NZ any day.
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Old 29th Aug 2014, 14:01
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Cancel and retime - definitely true. What are the figures bandied around all the time in media/press/for awards etc? On time departures. Cancelled flights are not. Some statistic gatherers do actually publish numbers of cancelled flights but it is rare.

Of course on time departure figures are a complete concocted wank anyway. Just another data point that the managers/non-operational people have decided will be a measure of "performance" "greatness" and of course their own ability to grab a bonus based on these figures.

Doors closed and park brake off means so much to the "on-time" industry but bugger all to people/freight being moved from A to B actually in the time promised/published/stated.

Cancel and re-time is very real and they all do it. Some, of course are worse offenders than others.

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Old 29th Aug 2014, 22:05
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Retiming is true, no doubt there. What doesn't happen is the 'creation' of a new flight number to fool the OTP stats. I don't know what airline Cactus' mates work for but one that has a fluid schedule like he suggests and a chief pilot who rings you personally to bollock you for performing a go around (see other posts) sounds more based in fantasy land that OZ or NZ.

I should also point out that Jetstar NZ had an ANNUAL cancellation rate of 0.6% or 1 in every 160 flights cancelled. Seems reasonable. Aside from conspiracies about some complicated plan to dupe OTP figures it may almost be possible that the stats show Jetstar NZ as having better OTP because they actually do.
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Old 30th Aug 2014, 00:25
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can someone rename this thread pls to reflect the actual topic being discussed?

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Old 30th Aug 2014, 06:53
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It seems that even there is a huge backlash of residents in New Zealand that are disliking Air New Zealand

Editorial: Air NZ flying high but must heed flak on regional fares - Business - NZ Herald News
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Old 30th Aug 2014, 08:55
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It seems that even there is a huge backlash of residents in New Zealand that are disliking Air New Zealand
Actually more a few making some political noises. Lets face it if Air NZ was creaming it on the regional routes there'd be other operators after a share of the cake. The fact there's not would indicate the fares are probably about right.

You have to remember the private motor car is the biggest competitor to air travel in New Zealand, not any other airline that might come along.
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Old 30th Aug 2014, 13:24
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Flying domestically in NZ outside of the main trunk routes is NEVER going to be cheap, but it can be value for money. When NZ hits a population of about 20 million or so, we might see an improvement....
Air NZ are however masters at ripping customers new ones...
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Old 31st Aug 2014, 01:25
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Lets face it if Air NZ was creaming it on the regional routes there'd be other operators after a share of the cake
Like Origin Pacific.

Was looking at flying Wellies Blenheim the other week about a month before needing to travel, from memory the fare was around $240. One way.
And that wasn't the most expensive seat.
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Old 1st Sep 2014, 18:38
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Disgraceful

Just had a look on the air nz website, 2 adults 1 Child and one infant return AKL to GIS return = about $2400 NZD if you have a flexible ticket and 2 check in bags off an international flight.AIR NZ ARE YOU INSANE!!??? you are your own worst enemy!.

Last edited by outboundjetsetter; 2nd Sep 2014 at 17:18.
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Old 1st Sep 2014, 20:10
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Elzilcho

I think that on many international fares the domestic portion is included as part of the international fare. In other words there is very often no $50 for the domestic portion.
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Old 1st Sep 2014, 22:20
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presumably objs's intl sectors were with another carrier for him to know that number
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Old 2nd Sep 2014, 00:56
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OBJS said,
Just had a look on the air nz website, 2 adults 1 Child and one infant return AKL to GIS return = about $2400 NZD if you have a flexible ticket and 2 check in bags off an into flight.AIR NZ ARE YOU INSANE!!??? you are your own worst enemy!.
Nothing like finding the worst case to make your point.

Just used the same criteria 2 adults, 1 child and an infant. Not flying on a Friday or Monday booking using seat plus bag.

Booking tomorrow - $1449 return.
Booking next month - $909 return.
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Old 2nd Sep 2014, 17:39
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C100driver When i did a random search of dates i wasn't trying to find the most expensive price, I put some random dates in around nov- Dec as this is the time id like to 'come home' shocked to see 399 per adult per sector, just did another search today and found the prices have come down significantly for a similar period???( around 1600) .
I am not trying to find the worst case scenario to make a point! I do have one child infant and wife and clearly remember flying home ( internationally with another carrier which lucky for me is my choice) then enjoying a 1900 flight which cost about half as much 4-5 years ago.Inflation is high in nz you certainly notice it when returning as as Expat but i I don't buy the "1900 seats =higher $/mile v's ATR running costs excuse etc etc.. sure an 'A' check is an 'A' check but competition is competition ( healthy) also.
p.s Warren yes the international flights are from another Carrier, Air NZ don't fly to where I live,

Last edited by outboundjetsetter; 3rd Sep 2014 at 07:50.
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Old 2nd Sep 2014, 19:15
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If you don't buy that a 1900 has higher seat costs than an ATR then you don't know much about airlines and aviation.

edit: oh and Ive just checked the same flights as well. 25 Nov to 3 Dec, 2 adults, 1 child, 1 infant, seat and bag tickets, middle of the day (no real variation over the day anyway) comes to $654. Total.
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Old 3rd Sep 2014, 12:15
  #36 (permalink)  
 
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No, they are a rip off, and Yes, if you live in a provincial town, the availability and pricing is a major issue! In Gisborne it's common practice to drive 3 hours to Napier to get cheaper airfares at better times. Ditto, Wanganui to Palmy, Taupo to Hamilton etc. people have been talking about it in the cafés and bars here since the announcement.

New Zealanders are pretty hard to get riled, but one thing that causes muttering is big monopolies, partially state owned, charging top dollar, and then shoving it down our throats with public (record) profit announcements.
Same goes for power companies, and internet/telecom providers!
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Old 3rd Sep 2014, 13:51
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What about fares to and from phuckatarnae??
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Old 3rd Sep 2014, 19:50
  #38 (permalink)  
 
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No, they are a rip off, and Yes, if you live in a provincial town, the availability and pricing is a major issue! In Gisborne it's common practice to drive 3 hours to Napier to get cheaper airfares at better times. Ditto, Wanganui to Palmy, Taupo to Hamilton etc. people have been talking about it in the cafés and bars here since the announcement.

New Zealanders are pretty hard to get riled, but one thing that causes muttering is big monopolies, partially state owned, charging top dollar, and then shoving it down our throats with public (record) profit announcements.
So what do you propose? ANZ makes single digit ROI. Yes it is a good profit, relative to the losses most other airlines are making. As a ROI its not that great, and most business wouldn't be bothered with a return that low.

So what exactly should ANZ do? Run the regions at a loss? Run the regions at break even? How exactly is this beneficial to the investors, including the government that gets a return thanks to their stake.

People need to get real about what an airline costs to run, and what its purpose is. Its a business that should be making money. If its not then you start putting jobs at risk, and you run the very real risk of flights to the regions being severely cut back. How does that help anyone?
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Old 3rd Sep 2014, 19:57
  #39 (permalink)  
 
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With all this talk about fares into and out of Gisborne, I guess no one has made the connection that the landing charges into Gisborne are now higher than they are at Wellington?

I guess no one else has seen that Airways have been increasing their airways charges by around 80% per year over the last three years?

How much have wages, fuel, maintenance costs increased in the same period?

Oh yes, of course the CAA have increased their fees by up to 400% in the last two years. (My medical went from being $180 to over $400, a new licence went from $60 to $230, auditing charges went from $180 an hour to $800 an hour).

The actual fares themselves have remained static over that period.

Has anyone here got an idea of how capital expensive running an airline is? I think the return on investment in Air New Zealand this year was about 2.75%, which is absolutely amazing for an airline, but still no where as good as what you could get if you kept the money in the bank. If you actually owned shares in the bank, then you would sell your shares if your return was less than 20%. Pharmaceutical companies, anything less than 80% is bad.

Air New Zealand does now have a CEO who is more interested in numbers and is not afraid of axing under performing routes. He has a mindset with regional New Zealand, that if you don't use it, you'll end up loosing it.
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Old 3rd Sep 2014, 20:12
  #40 (permalink)  
 
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Regional fares too high? Aw tuff. suck it up princesses... Thats the real cost of regional, low yield low volume routes.

Any time that there has been a competitor start up, the majority of the general public would still fly the Koru and wouldn't support the challenger anyway because of xyz... insert crappy service, bad frequency, doesn't connect to my international flight, uses child labour, doesn't give out biscuits on a 20 minute sector.

So suck it up regional NZ, quit complaining, you did it to yourselves. Hope you like driving...
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