Air New Zealand Trans-Tasman Routes Rebound
AAP | Jul. 22, 2011
Air New Zealand chief financial officer Rob McDonald says the airline's trans-Tasman operations have rebounded strongly and will improve further as the alliance with Virgin Australia kicks in.
Despite the improvement, Mr McDonald confirmed the New Zealand flag carrier was still anticipating a second half loss amid high fuel prices and natural disasters at home and abroad, namely the Christchurch earthquake and Japanese tsunami.
He told the Australia Pacific Aviation Outlook conference in Sydney on Thursday that Air New Zealand carried 140,000 more passengers on its Australia-New Zealand flights between November 2010 and May 2011, compared with the prior corresponding period.
"That's a material change in financial performance," Mr McDonald told reporters on the sidelines of the conference.
"We try not to talk about money, but it is fair to say that we are pretty pleased with the way that market has developed."
The turnaround on that route was due in large part to the airline's "seats to suit" package, which allows passengers to purchase add-ons such as checked luggage, food and drink, lounge access and in-flight entertainment.
Air New Zealand and Virgin Australia started selling tickets for its combined operation across the Tasman on July 8, with the first flights due to start on July 26.
The two airlines will codeshare across the Tasman and on selected flights in their respective home markets.
Mr McDonald said early signs from ticket sales were "pretty good".
Meanwhile, Mr McDonald said Air New Zealand, as the launch customer for the Boeing 787-9, was "frustrated" by delays to its order of Dreamliners and was in constant dialogue with manufacturer Boeing regarding compensation.
The delays had "held back" the airline's growth plans, he added.
"We are in constant discussions with Boeing around delivery dates and the financial implications of that, so we always seem to be having discussions with them," Mr McDonald said.
"It would be an understatement to say we are frustrated and disappointed.
"We should have got these planes six months ago."
First delivery of the 787-9 was due some time in 2014, Mr McDonald said, and would be used initially on flights to China and Japan, among other Asian destinations.