AIR - Air NZ.

[44wishlists]

LOL I am sure that will be a happy experience for customers. Speaking or airlines cutting back capacity NBR reporting Hong Kong airways cutting back "The two Asia-based airlines on the Hong Kong-Auckland route are cutting capacity. Hong Kong Airlines will reduce its daily flights to five a week from March 31, 2019" Goes on to say cutting back to 3 times a week over winter.

Tianjin Airline is stopping service to AKL from March 2019 as well. Is it a because Air NZ is winning the game, or a slow down in the tourism sector overall? That's worth a moment of thought. Maybe it's doing more harm to AIA, than AIR.

Bear in mind that AirNZ is looking after the line check and ground service for the Hong Kong Airlines birds in AIA. So that's a revenue drop when HKA cuts back their service.

[dobby41]

Unfortunately (and probably deservedly) not number 1 anymore
https://www.tvnz.co.nz/one-news/worl...year-reign-top
Singapore pipped them.

[Joshuatree]

"Air New Zealand is one of the few airlines in the world to have an investment grade credit rating, is a staunch supporter of its home country and has been enjoying a healthy expansion in both its domestic and international markets. Its overall product is superb, and its business class bed is outstanding,"

Bouquets for the credit rating, brickbats for its fleecing the regions imo.

[Bobdn]

They don't "fleece" the regions. They don't like flying routes that lose money (weird) they like to make a profit and stay in business and keep people employed and they pay a heap of tax. It's alright for businesses to make a profit and stay in business. New Zealanders generally struggle with the idea of companies making a "profit". Seems dirty somehow.

And if there is so much money flying to the regions, great, competitors will be lining up.

[blackcap]

They don't "fleece" the regions. They don't like flying routes that lose money (weird) they like to make a profit and stay in business and keep people employed and they pay a heap of tax. It's alright for businesses to make a profit and stay in business. New Zealanders generally struggle with the idea of companies making a "profit". Seems dirty somehow.

And if there is so much money flying to the regions, great, competitors will be lining up.

Well said. If Air did not price the regions the way they do, then there would be no AIR. (unless the govt went and bailed them out again). Its a free market out there, if you think AIR is charging too much on those regional routes, go set up an airline yourself and cream all those profits.

[Beagle]

The reginal debate has been done to death. In hindsight all those that claimed AIR were really creaming it on their some of their regional routes with their Beechcraft 1900 19 seater aircraft were made to look like idiots when AIR stopped using those aircraft and admitted they were losing over $1m a month operating them !

I think they're doing fine with their ATR aircraft but Jetstar have been allowed to come in and cream the most profitable routes without providing a comprehensive network coverage like AIR does. If there were such incredible super profits from providing a widespread national service covering most of the major regional towns and cities then the obvious question of why hasn't Jetstar expanded springs readily to mind.

[Joshuatree]

Its like the banks making super profits and at the same time closing down branches in towns, profits above service.

[iceman]

Well said. If Air did not price the regions the way they do, then there would be no AIR. (unless the govt went and bailed them out again). Its a free market out there, if you think AIR is charging too much on those regional routes, go set up an airline yourself and cream all those profits.

I think the problem some (including myself) have raised regarding this is that there have been operators starting up on routes that have been profitable, only to see AIR target the same routes at same flying times with predatory pricing until they've killed the competition. Then AIR ups the price again. Origin here in Nelson was a good example. AIR was then 100% Government owned so that can hardly be called a free market.
But of course I totally agree that AIR should be flying only on profitable routes.

[winner69]

AIR are into this customer analytics stuff ...so they proudly say

Interesting article

Love the industry term ‘calculated misery’

https://www.ama.org/publications/Mar...much-data.aspx

[blackcap]

I think the problem some (including myself) have raised regarding this is that there have been operators starting up on routes that have been profitable, only to see AIR target the same routes at same flying times with predatory pricing until they've killed the competition. Then AIR ups the price again. Origin here in Nelson was a good example. AIR was then 100% Government owned so that can hardly be called a free market.
But of course I totally agree that AIR should be flying only on profitable routes.

Fair comment. But I was more concerned about AIR gouging the regions. It's not like they really make supernormal profits is it. So I do not really see what all the fuss is about. On the other hand, it could be that they (AIR) have become bloated and are not as efficient as they could be. Hard to tell which it is.