767er From Australia, joined Apr 2001, 1092 posts, RR: 4 Reply 8, posted (11 years 13 hours ago) and read 2464 times:
Tue 28 May 2002
Air New Zealand will make major changes to its domestic and international airline operations over the next 18 months to improve services to business and leisure travellers under a new strategy announced by the company today.
The company's new strategy has been shaped by clearly expressed consumer demands for lower fares, more choice of flights, simplified booking and purchase processes, and improved loyalty benefits for frequent flyers.
The strategy will be implemented progressively over the next 18 months across three key areas of Air New Zealand's airline operations.
* New Air NZ domestic & Freedom Air services and Frequent Flyer Rewards programme changes will be implemented on 27 October 2002. Broad details of the new products and services being introduced in this phase are announced today.
* Air NZ International short-haul services (Trans-Tasman, Pacific Islands) are being expanded in schedules taking effect in October and November this year. New international short-haul product and service specifications are being developed for introduction next year. Details of the new international short-haul product and services specifications will be announced nearer the implementation date
* Air NZ International long-haul services (Asia, Japan, the Americas, and Europe) - are also being expanded in November schedules. New international long-haul product and service specifications are scheduled to be announced next year.
Priority is being given to the development of the vital Air New Zealand domestic main trunk operations which provide the core of the company's business, and where further competitive challenges are most likely to develop in the near future.
Introducing Air New Zealand "Express"
Air New Zealand will introduce a new Express class service on the main trunk domestic routes operated by its Boeing B737-300 fleet. The start-up date for Air New Zealand Express is 27 October this year.
Air NZ Express will offer passengers substantial reductions in fares and more seats per flight.
Air NZ Express aircraft will be fitted with 136 seats, compared to 122 at present. The additional 14 seats per aircraft will be achieved by the removal of the separate business class cabins currently fitted on Air New Zealand B737-300s.
During 2003, new, ergonomically-designed seats offering increased knee space will be installed progressively on Air NZ Express aircraft.
A new in-flight snack service - including offerings of tea, coffee and water - will be provided on all Air NZ Express flights. There will be no in-flight meal or alcoholic beverage offering.
Details of the new fare structure will be announced in July, closer to first on-sale date for Express services.
Freedom Air Expansion
Freedom Air's trans-Tasman operations will be expanded to provide new, low-fare services to Queensland from Auckland, Wellington and Christchurch, in addition to its existing range of trans-Tasman services. .
The new Freedom Air services will go on sale in July for flights commencing on 27 October this year. An additional Boeing B737-300 will be acquired to provide the capacity required to introduce these services, increasing the Freedom Air fleet from 4 aircraft to 5.
Freedom Air operations on core domestic main trunk centres (Auckland - Christchurch, Auckland - Wellington) will be maintained.
International Short-haul Service expansions
Air New Zealand will expand its operating capacity on international short-haul(Tasman and Pacific Island) routes in November. The key changes are:
* Auckland to Sydney : the number of flights per week will increase from 20 to 28
* Auckland to Fiji : the number of flights per week will increase from 7 to 8.
* Christchurch to Sydney: the number of seats available per day will increase 38% with the up-gauging of one of the two daily B737-300 services to a B767 operation.
The development of new product and service specifications for Air New Zealand International short-haul services is well advanced, and significant changes will be introduced next year. Details of these changes will be announced closer to the implementation date.
International Long-haul Service expansions
Air New Zealand is also expanding its operations on international long-haul routes to the United States and Asia this year. The key changes are:
* Auckland - Los Angeles : the number of flights per week will increase from 10 to 14 (a 40% increase in capacity) from November.
* Auckland-Honolulu : the number of flights per week will increase from 2 to 3.
* Auckland - Tokyo, Japan: capacity increased 23% last month with the introduction of daily services to and from Narita.
* Auckland - Kansai, Japan : the number of flights per week will increase from 6 to 7 in November.
* Auckland-Hong Kong: the number of flights per week will increase from 5 to 7 in November.
* Sydney-Los Angeles : the number of flights per week will increase from 3 to 5 in November.
New product and service changes for Air New Zealand International long-haul services are currently being evaluated, and will be announced next year.
Air Points reward programme enhancements
The strongly-supported Air New Zealand Air Points reward programme will be significantly enhanced by changes which will be introduced in October, at the same time as the first major airline service changes.
The Air Points programme will be modified to provide more points earning opportunities for frequent domestic flyers using the new Express service.
Air Points redemption opportunities will be enhanced with currently scheduled international service expansions. The Air Points programme will continue to offer other unique benefits to its 800,000 New Zealand members, such as Companion Fares.
Koru Club lounge layouts in main trunk centres with Air NZ Express services will be improved to offer more group seating arrangements suited to working business travellers.
Access to Koru Club lounges will be offered on a fee-paying basis to Koru Club members and their travelling guests. Air Points Gold and Gold Elite customers as well as First and Business Class international passengers will also be admitted.
Simpler booking, purchase and seat selection via Internet
The Air NZ Website will be upgraded to provide Air NZ Express customers with simplified booking, purchase, and seat selection processes. The first improvements in "look and feel" will take effect in July, with more substantial changes effective in October.
The Group's current financial performance is ahead of the targets for earnings and gearing contained in the 5 year plan produced to support the recapitalisation of Air New Zealand at the beginning of this year.
The company's new domestic and international operating strategies provide the platform for achieving the continuing financial improvements forecast in the 5 year plan.
The revenue impacts of fare reductions in the implementation of the first phase of the strategy are expected to be offset by operating cost reductions, some market stimulation, and some market share gain.
Future year targets remain very challenging. No further earnings guidance can be offered at this stage. The company remains committed to the achievement of the targets contained in the plan.
Mx5_boy From , joined Dec 1969, posts, RR: Reply 12, posted (11 years 13 hours ago) and read 2427 times:
NZ Express? Sounds delightful. No domestic booze.
Are they really saying QF stole our biz pax anyway?
I note they are refusing to divulge the changes to Trans Tas / Pacific services, but one can only guess they have given themselves 6 months of the domestic express service to guage customers opinions. Then implementing a similar sort of thing on Trans Tas / Pacific flights.
VirginFlyer From New Zealand, joined Sep 2000, 4502 posts, RR: 50 Reply 14, posted (11 years 12 hours ago) and read 2416 times:
Don't worry, AirNewZealand, we will find out soon enough. Shame to see the meals go on domestics - that was always a big selling point over Qantas. Still, to be honest, it is only a 1h45 minute flight at most (AKL-ZQN), so its not that bad. I wonder if you will be able to buy a slightly more substantial meal on-board - that to me seems to be a sensible idea, and I have heard of some airlines in Europe doing this.
As for the international stuff, my (slightly educated) guess for the long hauls (and AKL-SYD and AKL-MEL routes) would be dumping the current First class - not that its used throughout much of the network anyway - and Business Class and having a 'Super-Business Class', with lie flat seats a la VS, SQ, CX. As for South Pacific and Trans-Tasman, 767 may or may not go all economy, with perhaps only 6-12 seats (as opposed to the current 18 on a 767) of this 'Super-Business Class', and most likely the 737s will go all Y (J on them isn't that great anyway - the seat is wide, but you only get a few more inches of legroom - I wouldn't mind it, but I wouldn't pay extra for it)
All will be revealed in due course, I am sure (provided they don't get swallowed up by the dark side of the force from over the Tasman)
"So powerful is the light of unity that it can illuminate the whole earth." - Bahá'u'lláh
Aerokiwi From New Zealand, joined Jul 2000, 2410 posts, RR: 4 Reply 15, posted (11 years 11 hours ago) and read 2358 times:
Decididly unusual decision to downgrade.
It seems sensible on the surface, but look a little deeper. NZ still has relatively high operating costs, meaning the move to no-frills will hardly bring substantial benefits. The airline is trying to paper over fundamental problems like that high cost base.
Also, airlines always go on about how they make their money from business pax. So what's up with dumping it? Corporate flyers tend to be more discerning travellers and will change if it suits them. If I had the money, I know I would.
Quite frankly, as Qantas expands in NZ (both domestically and internationally), Air NZ is going to lose more of those valuable upper-end pax.
Very dangerous move on an airline that has only its service reputation to fall back on now. And if the same is done to trans-Tasman flights, exactly how do they expect to get Aussie corporates onboard?
These changes are sidestepping the real problems faced by the airline and I suspect will be reversed in time.
TG992 From New Zealand, joined Jan 2001, 2910 posts, RR: 11 Reply 16, posted (11 years 11 hours ago) and read 2349 times:
I respectfully disagree, Aerokiwi.
Worldwide, we're seeing a trend for business to pay a lot more attention to travel costs. Several large corporate firms are now (I believe) utilising DJ in Australia (can mx_5boy or another Aussie resident confirm?), annd in Europe, no frills airlines such as Easyjet are seeing increased numbers of business travellers.
If these moves allow NZ to offer lower prices, I think corporate clients will be all for it. Pacific Class domestically is *very* comfortable anyway, and I doubt many travellers will be too concerned about getting a snack rather than a full 2 course hot meal on a 45 minute WLG-CHC sector!
Mx5_boy From , joined Dec 1969, posts, RR: Reply 17, posted (11 years 9 hours ago) and read 2288 times:
Why on earth do you think they are moving to 'no frills' type service? No booze or proper food? Obviously they have been looking at *yields* and discovered that the pointy end is being taken away by QF left right and centre.
What is more, rather than try and compete with QF in this area they are changeing product direction and offering something different in the hope that they can stave off QF whilst still manageing to attract pax, albeit at a lower price structure and compensate in other areas.
My bet is the changes to TT service are going to be in a similar vein six months after the initial domestic change. This gives them a chance to *test* out the new structure.
It will be interesting to see if it works, however, given the Australian example where QF have cut back service and everyone screamed, one should imagine the same will happen at NZ.
Besides which no doubt the boys at QF are going to tackle this in an effective manner and ramp up capacity, services and amenity to make flying QF NZ a joy rather than tedious. QF have the money to do it.
As for DJ attracting a significant part of the coporate market, well that just isn't so. When AN MKII went down, sure some disgruntled managers went to DJ but DJ have no service whatsoever unless you pay for it, plus they don't offer lounges or proper terminal facilities. It has been said that after a particular monsoonal downpour at the SYD express terminal whereby a manager and his staff had all their work and themselves drenched vowed to never fly DJ again. (Because of no airbridges.)
What DJ has done has opened up corporate travel to many who wouldn't have flown before, and of course they have attracted most of their pax through low fares or leisure travellers.
QF on the other hand is reeling in the dollars from corporate travel as they were literally handed AN's slice in one big hit! So QF have doubled their Biz pax and full fare economy yields, not to mention all the Star oncarriage they are receiving.
Even though the QF service has been described as crud in recent times, things are going back to normal with the dirty Perry Boxes being replaced by trays at meal times, so I am led to believe.
Does anyone think that NZ's move is very much like BMI?
More points for customers is an old trick and can be easily dilluted by changes, I fail to see whether people will fall for that.
TG992 From New Zealand, joined Jan 2001, 2910 posts, RR: 11 Reply 18, posted (11 years 8 hours ago) and read 2278 times:
While obviously unable to release specific information, the number of high yield pax that have migrated to QF's domestic NZ ops is negligable. They are still forecasting to lose (I believe) 45 mil on their domestic NZ ops this year, which must mean their planes are packed full of 'gutter' yield pax.
The majority of coporate clients travel in economy anyway so I think eliminating J is a good idea - the difference between full Y and J class fares domestically is relatively small (eg AKL-CHC one way full Y class is NZD516, J class fare is NZD591)
Mx5_boy From , joined Dec 1969, posts, RR: Reply 19, posted (11 years 8 hours ago) and read 2269 times:
Of course QF are going to lose money as they are deliberately stealing pax from NZ. But in the end they will win out in that sector of the environment. The fares you are showing are those that are pervading at the moment and are not indicative of what they once were.
QF were the ones to lower the biz fare and they are not filling their planes with so called "gutter" yield anymore than NZ is. Not only can I confirm this but it's easy to check out availability for both airlines and prices. QF are consistently offering lower fares accross the board and are having full flights.
When I have asked you previously when you have purported to NZ loads being *great* you have never answered me on the yields though.
Precisely! Because there have not been those yields there.
On the international front the crazy *market* rates to LAX were mad.
On the proprietary front, NZ's customers from now on will be of the gutter variety that you purport. Certainly the Aussie contingent that fly NZ are of that credence. Many travel agents and those particularly who got burned by the AN debacle still refuse to sell NZ services.
Check out the loads and yields on the TG services SYD/AKL.
TG992 From New Zealand, joined Jan 2001, 2910 posts, RR: 11 Reply 20, posted (11 years 8 hours ago) and read 2250 times:
The fares that I quoted haven't changed for over a year.
However, I am quite happy to look at your claim of QF flights being full.
let's look at todays loads as an example.
0635 QF AKL-CHC 065
0650 QF AKL-WLG 111 (NZ flight at same time chocka as well)
0820 QF AKL-CHC CANCELLED
1030 QF AKL-WLG 073
1135 QF AKL-CHC 046 (NZ flight at same time was full, so was SJ)
1210 QF AKL-WLG CANCELLED
1340 QF AKL-WLG 038 (compareable NZ flight had double this amount)
1345 QF AKL-CHC 039
1525 QF AKL-WLG 053 (compareable NZ flight had over double this amount)
Oz777 From Australia, joined Jun 2000, 521 posts, RR: 6 Reply 21, posted (11 years 7 hours ago) and read 2218 times:
Sorry, but a regrind of the same old s..t.
NZ domestic is in fact going back to the old NAC days.
What really annoys me is the "uplifting' of the FF programme for NZ passengers. As a Gold Elite Star member, I have let AirNZ know in very clear terms already that their economy product and pricing on B737's trans-tasman is well below TG's offerings SYD-AKL (and about $150 cheaper with the same points credit to the AirNZ rewards account!!!)
Nothing new in the 'access' to the Koru lounges (same as before).
Air NZ will still try to maintain the F product for the LAX and LHR markets, but J does for the rest of their network. Again the product 'enhancements' they are talking about are a trot-out of what they planned to do pre Sept 11.
Analysing the "capacity increases" for the Northern Summer schedule, there is again not much difference to what they have had before. Imagine 'celebrating' SYD-LAX at 5 per week - it used to be 7!!!
Sorry, a very very disappointing announcement. Shows what happens when Accountants determine the market strategy. All it does is make it a little harder for DJ to start dom. NZ operations. One curious question. The "frequency increase" to SYD from AKL. Does this now mean the loss of the B767's and upgrade to B737's. Sound very suspicious to me.
And for all of you whothink I am an avid ANZ supporter - think again. I might have to apply for a QF FF card now.
MX-5. Agree totally with your assessment of the yield and market assessment you put forward.
Aerokiwi From New Zealand, joined Jul 2000, 2410 posts, RR: 4 Reply 22, posted (11 years 6 hours ago) and read 2189 times:
It is ironic that the onset of competition domestically in NZ 15 years ago has come full-circle and we're at some awakward half-way point between "the bad ol' days" and full service.
Perhaps, however, this is just a ploy to gain support (or at least, delay the jackles) of the financial markets. An increased share price was inevitable after this announcement. And an increase market valuation makes dealings with the bankers a whole bunch easier, e.g loans etc.
Essentially, they had to be seen to do something. And this is what they came up with. Mediocre at best methinks. Also notice the interesting use of words used by the chief operating officer on the late news tonight - biz pax represent only 2% of revenue domestically. All very well, but what are their contributions to yields and ultimately, profits?
One other thing, people keep saying they will offer a "snack". Does this imply an actual food item, other than tea and coffee? And what about juice? Why is it always, tea, coffee and water?
Crosscheck From Australia, joined Jun 2000, 153 posts, RR: 0 Reply 24, posted (11 years 5 hours ago) and read 2128 times:
As an Air New Zealand employee, with access to Qantas Load Factors and flight information, I can only guess you must work at Auckland Airport. I'm sure displaying Qantas Corporate Information in such detail as you have done, is a breach of the Air New Zealand Ground Handling agreement between these two companies. Qantas, and I am sure Air New Zealand are both fiercely protective of this type of information.
Maybe you should check with your supervisor next time you wish to publish sensitive airline information.
PS As a ground agent, many airlines have access to certain information about other airlines activities, however I sure there are certain agreements in place to protect each others business interests, this type of behaviour wouldn't be one of them.
25 V Jet: TG992 Bitch font on Probably cancelled because it was due to be operated by the cruddy ex Ansett 733 thats alway u/s
26 Jiml1126: NZ Express? Sounds delightful. No domestic booze. I think NZ Express is equivalent to Air Canada creating Air Canada Tango. Lo fare, no-frill, no meal
27 TG992: Crosscheck, Sorry, don't work at AKL - actually, I just went there on my off day and counted pax boarding, as any member of the public can do Skystar,
28 Rmm: Looks like a few more job losses coming out of this one, http://www.theage.com.au/articles/2002/05/28/1022569769334.html Rmm
29 Jetkid: I'll miss the in-flight meals on NZ, as they were streets ahead of QF in J or Y, even when you compare them to the trans-tasman offerings QF provide.
30 B-HXB: STUPID! What on earth are Air NZ thinking??!! Their decision to cut business class makes no sense. Out of the 8 seats on a 737-300 AKL/WLG/AKL there a
31 Jiml1126: Their decision to cut business class makes no sense. Out of the 8 seats on a 737-300 AKL/WLG/AKL there are often three or four pax (if not more). Thus
32 VirginFlyer: B-HXB Out of the 8 seats on a 737-300 AKL/WLG/AKL there are often three or four pax. Precisely. Yet it requires an extra flight attendant - for three
33 Mx5_boy: TG992, Did you really just up and go from QF dom to NZ dom counting pax at the same time? That's an intersting twist to the airline obcessed! mb
34 Marara: Jiml1126, Tango and NZ express are completely different situations AC doesnt have cashed up competition, AC arent loosing the J class passengers to an
35 Pilottim747: At least Air NZ isn't going to give up with out a fight!!! I love them and I wish Air NZ all the best. pilottim747
36 Fqtv: VirginFlyer, you're absolutely right. 3 - 4 Business Class passengers per flight are not worth the extra space, extra flight attendent, extra catering
37 Aussie_: When they mention additional Freedom flights to Queensland from AKL, WLG and CHC do they mean OOL only or also BNE? Would they consider an AKL-CNS ser
38 Jiml1126: Tango and NZ express are completely different situations Actually they are. AC doesnt have cashed up competition, AC arent loosing the J class passeng
39 TG992: Some interesting excerpts from the 'Larry Williams Show', a high-rating NZ radio programme. NORRIS: No there will just be a New Zealand, Air New Zeala
40 Twaneedsnohelp: Did I read this right. Air New Zealend Express will be competing with Freedom Air on domestic NZ routes??
41 Aerokiwi: Will miss that evening cocktail service (even in economy). That was always something special I thought, especially for such short flights. When you've
42 Duff: It was noted in the Herald today that a lot of New Zealand business's are not booking business class seats for their employees. It was also stated tha
43 Jiml1126: Air New Zealend Express will be competing with Freedom Air on domestic NZ routes?? Actually, I don't think so. ANZ is not going to be too stupid to le
44 Kiwi dave: Will we see a change in livery or will it remain the same?
45 NZ767: The livery's only just been introduced Kiwi dave. In fact there are still one or two (Link) aircraft still running 'round in the old colours so I very
46 ZK-NBT: I think half of the link fleet is still in the old colours although they are mainly Bandit's and Metro's.
47 Kiwi dave: I know that the livery has only been out for a couple of years I was refering to would they add the word express to the livery.