Air NZ Revises Services Again To Trim Costs
October 2nd, 2008
Air NZ is continuing to take the knife to its services and capacity as it attempts to ward off the ills caused by the US-led global financial market woes. The airline has trimmed its planned long-haul capacity for the current financial year by 6% on 2008. Direct flights to Japan have already been culled during the spring months and the airline will ditch its additional twice-weekly Auckland-Hong Kong services in December and January in light of Cathay Pacific’s decision to increase flights. Capacity on the trans-Tasman routes has also been reviewed for off-peak months, but the Auckland-San Francisco link will be upgraded to a bigger plane in light of strong demand.
Upside To Airline Crisis. Despite tough trading conditions caused by a combination of higher fuel prices, domestic and trans-Tasman competition and a global credit crisis which could severely diminish demand, CEO, Rob Fyfe, remains upbeat. He says the national carrier has been closely scrutinising all its markets and matching capacity to demand. “As the global credit crisis continues to deepen, its impact on demand is now emerging as a major concern for the aviation industry.” The airline revealed 24 airlines failed in the first half of 2008 and up to a further 30 will collapse before the year ends. However, this is likely to work in Air NZ’s favour as banks pull the plug on struggling airlines and fewer aircraft are ordered globally which could see aircraft purchase prices slashed.
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