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Air New Zealand to review long haul

written by WOFA | August 26, 2011
An Air New Zealand 777-300ER.

Air New Zealand has announced it is to review its long haul route network, which it says is losing NZ$1m (A$800,000) a week.

“International markets remain volatile and this has an impact on the demand for New Zealand as a destination,” Air NZ CEO Rob Fyfe said yesterday in announcing the airline’s profit results. “This has seen long haul routes in our network lose more than $1m a week in the first six months of this calendar year. No stone will be left unturned as we rigorously review our business model, the routes where our capacity should be deployed, our sales and marketing strategy and alliance partner opportunities. The process of change will start to take place this side of Christmas.”

Fyfe said high fuel price, the rising New Zealand dollar, a weakness in demand from key tourism markets the US and UK meant the airline’s long haul network is struggling.

Only last week Qantas announced changes to its long haul network following a similar review. Qantas’s changes include 1000 job cuts, retiring 747-400s and deferring A380s, and cutting some services to London.

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