NZ potential job losses & LHR in doubt

[haydensydney]

Air New Zealand May Cut Jobs | Stuff.co.nz

Air New Zealand is understood to be considering hundreds of job losses early next year.

The airline is looking to slash tens of millions of dollars in costs in a difficult year ahead which could see the koru pulling out of London.

Although the pullout of LHR isn't confirmed, I would be disappointed to see it go. I'm not surprised however as NZ is a small airline from a small country and if it really is losing $1mil/week on it's international network, I can see why they would want to review it's loss making operations.

 

[Mal]

Saw the rumours yesterday in NZ press. Quite sad if true.

But they aren't making money at the moment, so need to work out what to concentrate on. QF has had similar battles, and has devised various ways to deal with it. Does AirNZ really need to be a global airline? Should they use interline partners more?

 

[Blackadder]

Always going to be a struggle for Air NZ coming from a relatively small base.
I guess they could always look at being a regional airline serving Oceania/Asia and outside of that code share to Europe/US

 

[Kendall Roy]

QF has had similar battles

Slightly OT, but in yesterday's QF investor briefing they're forecasting that by 2021 that QFi will consist of (14?) A380s only :shock:

No 787s flagged for International ops!

 

[drron]

Slightly OT, but in yesterday's QF investor briefing they're forecasting that by 2021 that QFi will consist of (14?) A380s only :shock:

No 787s flagged for International ops!

That would not be good news.

 

[Bundy Bear]

Currently Air NZ fly to LHR from both HKG and LAX, LAX has been going for about 20 years and probably won't be dropped. I guess there is some chance that HKG-LHR could be dropped, but I think either could go, and just stay with one, the one that makes money. :idea:

 

[serfty]

... the one that makes money. :idea:

... or the one that loses the least... :-|

 

[Noob]

Maybe they will only fly to HKG and LAX and codeshare to LHR.

 

[harvyk]

Slightly OT, but in yesterday's QF investor briefing they're forecasting that by 2021 that QFi will consist of (14?) A380s only :shock:

No 787s flagged for International ops!

Possible, but I doubt it.

As for AirNZ, pulling out of LHR completely does seem strange, however I believe (last time I checked at least) they are the only airline to fly right around the globe (given you can fly on them to LHR via asia or the US). I would have thought that dropping one of the directions you can fly to LHR (eg the LAX-LHR) would have been preferable to dropping LHR altogether.

 

[dk4]

If it happens, here's hoping that NZ sells their vacated LHR slots to their good friends at VA. :!:

 

[777]

Right now ANZ is the only airline that flys all the way around the world (AKL-HKG-LHR-LAX-AKL) on their own metal AFAIK. If they pull out of LHR on one or both routes they may become the last airline ever to do that in this age of alliances.

 

[notzac]

Right now ANZ is the only airline that flys all the way around the world (AKL-HKG-LHR-LAX-AKL) on their own metal AFAIK. If they pull out of LHR on one or both routes they may become the last airline ever to do that in this age of alliances.

Does it make financial sense to be doing it - if they're currently the only airline that flies all the way around the world on their own metal, surely there's an indication right there that it may not be a profitable venture. One would think that if they were making bucketloads of cash out of doing so, other airlines would be doing the same thing as well..?

 

[mannej]

Where is the outrage over the potential job losses?

 

[lovestotravel]

Slightly OT, but in yesterday's QF investor briefing they're forecasting that by 2021 that QFi will consist of (14?) A380s only :shock:

No 787s flagged for International ops!

Sounds about right from what I have heard as well.....

I expect the remaining A380's (15 onwards) to be cancelled and/or go to Jetstar

They are already delayed years and that is a pretty good sign of things to come

The most recent 787 announcement about Jetstar using both the 787-8 and 787-9 again indicates (to me) that they will use all the 787's!


Back to NZ

I find it a little hard to believe that they are losing $1 million a week on "long-haul"

The 777-300ER is a big plane to fill and the 787 should help decrease the loses on various routes.

 

[docjames]

I would have thought drop one of HKG-LHR or LAX-LHR (probably the HKG route) first.....

 

[dajop]

Does it make financial sense to be doing it - if they're currently the only airline that flies all the way around the world on their own metal, surely there's an indication right there that it may not be a profitable venture. One would think that if they were making bucketloads of cash out of doing so, other airlines would be doing the same thing as well..?

Probably NZ is unique, regarding their geographic position and strong ties to the UK which is more or less on the opposite side of the world (I think Spain is actually the other side of the world). It would probably be most cost effective to actually fly right around the world (AKL-LAX-LHR-HKG-AKL), but trouble is the pax being picked up and dropped off at intermediate stops!

 

[casanovawa]

Probably the most profitable thing to do in the short term (if allowed) is to keep the slots and rent them to another airline for a year or two if difficult times are predicted before a return to some more favourable conditions...

You save any losses being made on current services and get yourself a new income stream... Then you can take your time to decide if you will pull out for good or not...

 

[Justchecking]

Welcome to the new era of intl airline ops. We'll fly you to a hub and our friends will pick you up. ultra long range aircraft not necessary and building remote lounges is a lot cheaper than flying less than full aircraft around. Intl hosties will be not happy jan! When they are finally limited to their local region. But financially it all makes perfect sense.

 

[The Rok]

You might find ANZ code share from HKG-LHR with VS who I suspect are about to up their capacity on this route anyway.

 

[tuapekastar]

Slightly OT, but in yesterday's QF investor briefing they're forecasting that by 2021 that QFi will consist of (14?) A380s only :shock:

No 787s flagged for International ops!

They did leave the door ajar with a footnote that there may be some 'extra' 787 allocations to QFi (or words to that effect). I hope so.