AirNZ results more impressive than QF's

[Melburnian1]

The latest AirNZ resut of a NZ$496 million profit compared to QF's slightly under A$1 billion profit arguably shows AirNZ earning a higher profit per billion dollars of revenue, as in 2014 (have not looked at 2015 yet) its revenue was NZ$4.7 billion whereas QF is now approximately an A$15 billion in annual revenue group:

Air New Zealand to add capacity, lower fares to fend off Jetstar threat

So AJ's claim about QF's earnings being 'better' than EY, NZ, SQ and VA combined may not be quite so valid in NZ's case, depending on how one compares the NZ profit.

 

[serfty]

Yeah, NZ have no real competition but have still stripped their product to the bone in recent years.

As far as value to the customer goes, QFF >> Airpoints (and QFF 'sucks' in comparison with most of the world's airline frequent-flyer/loyalty programs).

 

[Melburnian1]

serfty, obviously NZ is a much smaller market for domestic flights than Oz, but having not been there for some time and generally using surface transport when I am there to get around not air, are typical fares (discounted or full eceonomy) significantly more expensive in NZ per kilometre travelled than is the case in Oz?

 

[smit0847]

Said it before and ill say it again:

One of the main reasons Air NZ is so profitable is they make unpopular decisions people just live with.

 

[significance]

serfty, obviously NZ is a much smaller market for domestic flights than Oz, but having not been there for some time and generally using surface transport when I am there to get around not air, are typical fares (discounted or full eceonomy) significantly more expensive in NZ per kilometre travelled than is the case in Oz?

I don't think they are, but AirNZ operate as a discount airline: pay extra if you want baggage or a meal. If a flight is cancelled or subject to a lengthy delay, you are pretty much on your own. Once on board, they still feel like a premium airline, though.

 

[yohy?!]

the qantas number of 1bil is the "underlying" one - the statutory profit was 560million

 

[samh004]

serfty, obviously NZ is a much smaller market for domestic flights than Oz, but having not been there for some time and generally using surface transport when I am there to get around not air, are typical fares (discounted or full eceonomy) significantly more expensive in NZ per kilometre travelled than is the case in Oz?

My memory of AirNZ domestically was that it was always very expensive. Though haven't flown them in a while.

Very good profits, but shall be interesting to see what a 789 through AKL will do in a few years

 

[cambriamarsh]

My memory of AirNZ domestically was that it was always very expensive. Though haven't flown them in a while.

Very good profits, but shall be interesting to see what a 789 through AKL will do in a few years

It is very expensive domestically off the main trunk (Akl Wlg ChCh Zqn). With Jetstar starting regional flights NZ have already significantly reduced their fares. It will be interesting to see where that ends up in the results.

 

[AviationNZ]

I don't think they are, but AirNZ operate as a discount airline: pay extra if you want baggage or a meal. If a flight is cancelled or subject to a lengthy delay, you are pretty much on your own.

For domestic and short haul, yes, this is the case, and it has been very well supported by customers over the last 4-5 years. For long haul they provide standard Y, PY, J offering.

Not sure where your statement on flights being cancelled or delayed comes from as my experience suggests they are one of the better airlines at re-accommodating.

 

[significance]

Not sure where your statement on flights being cancelled or delayed comes from as my experience suggests they are one of the better airlines at re-accommodating.

This comes from my experience on a Sydney-Christchurch flight a few years ago, with a Canberra leg operated by Virgin, but all booked on the same ticket through AirNZ. It was a nightmare. The first leg from Canberra was delayed due to bad weather, then cancelled and we were put on a later flight to Sydney. We arrived in Sydney and found that our AirNZ flight to Christchurch, though also delayed, had already left and we hadn't been transferred to another flight. We went to the AirNZ desk to try to sort it out and were told that they couldn't do anything: we'd just have to call their help line. After an hour on the phone, waiting to get through to AirNZ, we gave up and tried asking Virgin for help. Virgin was able to get us put on another AirNZ flight, but via Brisbane and a long wait in Brisbane airport. We eventually arrived in Christchurch nearly 24 hours after leaving Canberra, waited for our luggage, and found it hadn't arrived. They made us wait another half hour just in case it came through, but then gave us the "lost luggage" paperwork. I asked if they could provide at least a basic toiletries pack to tide us over, but they said no, so we had to stop at a 24-hour shop on the way to our accommodation to get a toothbrush, toothpaste and hairbrush. Our luggage finally arrived about 14 hours after that.

 

[AviationNZ]

This comes from my experience on a Sydney-Christchurch flight a few years ago, with a Canberra leg operated by Virgin, but all booked on the same ticket through AirNZ. It was a nightmare. The first leg from Canberra was delayed due to bad weather, then cancelled and we were put on a later flight to Sydney. We arrived in Sydney and found that our AirNZ flight to Christchurch, though also delayed, had already left and we hadn't been transferred to another flight. We went to the AirNZ desk to try to sort it out and were told that they couldn't do anything: we'd just have to call their help line. After an hour on the phone, waiting to get through to AirNZ, we gave up and tried asking Virgin for help. Virgin was able to get us put on another AirNZ flight, but via Brisbane and a long wait in Brisbane airport. We eventually arrived in Christchurch nearly 24 hours after leaving Canberra, waited for our luggage, and found it hadn't arrived. They made us wait another half hour just in case it came through, but then gave us the "lost luggage" paperwork. I asked if they could provide at least a basic toiletries pack to tide us over, but they said no, so we had to stop at a 24-hour shop on the way to our accommodation to get a toothbrush, toothpaste and hairbrush. Our luggage finally arrived about 14 hours after that.

Ouch...that does sound like a horror experience!!! I would suggest that this is a rarity however, as I personally have had a number of weather disrupts in recent times and the re-accommodating experience has been excellent. Same applies to QF/VA domestically in AU.

Doesn't excuse what happened to you a few years back, but hopefully the processes have improved.

 

[significance]

Ouch...that does sound like a horror experience!!! I would suggest that this is a rarity however, as I personally have had a number of weather disrupts in recent times and the re-accommodating experience has been excellent. Same applies to QF/VA domestically in AU.

Doesn't excuse what happened to you a few years back, but hopefully the processes have improved.

Good to know. There were massive distruptions that day due to major storms, so it would have really stress-tested their procedures. Still, I wasn't impressed.

 

[woodborer]

Air New Zealand had its near death experience years ago, and had its share price destroyed and all, and was pretty much kept afloat by the gvernment. It took tough decisions, to right itself. Qantas has only just got to the position of sorting its business out in the last few years.

 

[Mattg]

It will be interesting to see if NZ keeps this up once JQ expands its regional NZ network and QF/AA start competing on flights to the US..

 

[pauly7]

Not surprised they are making so much money - they certainly aren't investing a cent into the customer experience and with mostly a comfy monopoly to generate coin I don't see much changing dramatically quickly. Perhaps QF/AA starting up ex AKL to US flights and Jetstar regional will put a fire cracker up them!

 

[pauly7]

Air New Zealand had its near death experience years ago, and had its share price destroyed and all, and was pretty much kept afloat by the gvernment. It took tough decisions, to right itself. Qantas has only just got to the position of sorting its business out in the last few years.

Lol 'pretty much kept afloat by the government'?

Understatement of the century

 

[AviationNZ]

Not surprised they are making so much money - they certainly aren't investing a cent into the customer experience and with mostly a comfy monopoly to generate coin I don't see much changing dramatically quickly. Perhaps QF/AA starting up ex AKL to US flights and Jetstar regional will put a fire cracker up them!

Coming from someone that travels with them very regularly, I confidentially say this is so far off the mark.

A $40 million refit of lounges, a $100 million refit of the 772, hundreds of millions more on the purchase of new 787-9 and ATR's, one of the (if not THE) best premium economy product globally, excellent digital innovation with their apps and check in processes....

Yeah, they aren't spending a cent on customer experience.........

 

[Aussie_flyer]

Yeah a 772 refit to go 10 abreast and squeeze more people in isn't it?

 

[TomVexille]

Yeah a 772 refit to go 10 abreast and squeeze more people in isn't it?

And install the best PE product in the market?

 

[Aussie_flyer]

And install the best PE product in the market?

Thats subjective

Id like to try those seats one day but they dont look that comfortable to.me