Air New Zealand Air Points - Air NZ pulls Beijing route, ups Shanghai




WLG Base
Mar 27, 12, 10:30 pm
Air New Zealand is pulling out of the Beijing route in favour of boosting services to Shanghai.

The airline has been flying to Beijing from Auckland since shortly before the 2008 Olympic Games.

The existing twice-weekly service will end from June 30.

A fifth weekly Auckland to Shanghai service would be added from July 4.

Air New Zealand international airline head Christopher Luxon said: "We are confident of the potential for long term growth from one of China's most modern and populous cities."

Luxon said Beijing was still an important growth market, and a codeshare agreement with Air China would allow passengers to fly on to Beijing from Shanghai.

The airline plans to operate a daily service to China within a year.

Stuff (http://www.stuff.co.nz/business/world/6653943/Air-NZ-pulls-Beijing-route-ups-Shanghai)


123dd
Mar 27, 12, 11:00 pm
Wow, this is not expected, been on that route couple of times, completely packed....

Can't believe they are reducing their china service while promoting China!! So much for the green tea..

WLG Base
Mar 27, 12, 11:28 pm
Air New Zealand plans to cut its twice-weekly direct flights between Auckland and Beijing in order to concentrate on services to Shanghai which it will add a fifth weekly service in moves it calls an “expansion” of services to China.

“Following a review of current services into China, Air New Zealand has determined that this expansion will best be achieved by consolidating services into Shanghai and serving Beijing as a one-stop destination in conjunction with Star Alliance code-share partner Air China,” the airline said.

It will add a fifth weekly service to Shanghai from July 4 but will suspend its twice-weekly direct Auckland to Beijing service from June 30.

Travel between New Zealand and China has ramped up in recent years, with the number of short-term Chinese visitors climbing by about 49,000 to an annual 152,000 in the year ended Feb. 29 from 2010, while the number of kiwis rose almost 12,000 to 69,000 over the same period.

Air NZ is aiming for a $110 million profit improvement from its long-haul services by 2015, which are now an underperforming part of the company.

The airline’s first-half profit sank 61 percent to $38 million on higher fuel costs and fewer international passengers.

International airline group general manager Christopher Luxon said the airline still considers Beijing “an important and growing market” and its Air China code-share arrangement provides convenient connections between Shanghai and Beijing in both directions.

“Air New Zealand has been operating to mainland China for more than five years and is highly committed to the potential of the market long term,” Luxon said.

The airline has just created a new position of head of Asian operations and appointed Sandeep Bahl, “a highly experienced airline executive in the region,” to the position in its Shanghai office from the beginning of March.

“Under his guidance, we will focus our marketing and sales resources on the Shanghai region of around 14 million people as we seek to provide customers a daily service to and from this important gateway in China.”

The shares fell 0.6 percent to 85 cents in trading today.

NBR (http://www.nbr.co.nz/article/air-nz-cuts-beijing-services-concentrate-shanghai-gb-115044)


Xiaotung
Mar 27, 12, 11:59 pm
If they had concentrated on PVG in the beginning they probably would have acheived daily by now. PVG was just upped to 5 weekly before NZ made a sudden decision to open 2 weekly PEK after Rob Fyfe attended CA and FM *A joining ceremony in Beijing in 2007. As a result, PVG reverted back to 3 weekly.

Now looking back, it's such a waste of time.

Reason077
Mar 28, 12, 4:31 am
Wow, this is not expected, been on that route couple of times, completely packed....

Can't believe they are reducing their china service while promoting China!! So much for the green tea..

Presumably this has more to do with NZ being restricted by the Chinese govt in the total number of weekly services they are permitted to fly, rather than lack of demand.

I suspect they were not able to get approval to add more PVG services without dropping PEK.

MikeAKL
Mar 28, 12, 4:31 am
I have only just booked for myself and three friends (different itineraries, but all on PEK-AKL flight together in January) 3 days ago. One of us booked PE (travelling with wheel chair assistance) to allow more legroom for very long flight. With the stop at SHG, we now have an additional 4-5 hours of travel time (not to mention the hassle). Plus, I don't think CA offer PE on their domestic flights, so my friend is essentially paying PE for economy seat. I have used a GE recognition upgrade for the PEK-AKL sector (already confirmed). Wonder if that will also be "transferred" to the new flight? Off to the travel agent tomorrow. Just what I didn't need ...

Shazzadude
Mar 28, 12, 6:51 am
This is quite a shame, I'll be sad to lose this route, but it's not surprising. It was fairly common knowledge the Chinese routes weren't the highest yielding flights.

mattyroo
Mar 28, 12, 10:48 am
Bit of a shame to see this route go, personally it was great for me, as it was the best way to ULN, with a connection on MIAT.

Not sure if they were making any money on this route, but the business class cabin generally was full - although a number of these could've been upgrades. Not sure about zoo class, but if the riot at PEK check-in was anything to go by, I would assume it was generally pretty full too - one would assume however, the Chinese students are not the worlds most profitable passengers....

highpeak1
Mar 28, 12, 12:47 pm
Makes sense on NZ's part; bigger market, higher yield ex-PVG and definitely no slots in PEK to expand. However, a limited interline pool with CA. But interlining is a small part of the PEK business. As said, it is tourists and students at low, low wholesale prices.

SMcLean
Mar 28, 12, 2:15 pm
I have only just booked for myself and three friends (different itineraries, but all on PEK-AKL flight together in January) 3 days ago. One of us booked PE (travelling with wheel chair assistance) to allow more legroom for very long flight. With the stop at SHG, we now have an additional 4-5 hours of travel time (not to mention the hassle). Plus, I don't think CA offer PE on their domestic flights, so my friend is essentially paying PE for economy seat. I have used a GE recognition upgrade for the PEK-AKL sector (already confirmed). Wonder if that will also be "transferred" to the new flight? Off to the travel agent tomorrow. Just what I didn't need ...


One option is to cancel the existing bookings and rebook flying through Hong Kong and catch a connecting flight through Cathay Pacific. The Hong Kong route often has some good specials on PE at times.

MikeAKL
Mar 28, 12, 3:11 pm
One option is to cancel the existing bookings and rebook flying through Hong Kong and catch a connecting flight through Cathay Pacific. The Hong Kong route often has some good specials on PE at times.

Sadly, the four of us coming from different places to meet in PEK and then head back to NZ together. No PE options from PEK to SHG. :-(

SMcLean
Mar 28, 12, 5:53 pm
Sadly, the four of us coming from different places to meet in PEK and then head back to NZ together. No PE options from PEK to SHG. :-(

Bummer.
I wouldn't fly Air China (codeshare or no codeshare), but that's just my opinion.

123dd
Mar 28, 12, 8:20 pm
Bummer.
I wouldn't fly Air China (codeshare or no codeshare), but that's just my opinion.
The only benefit of NZ that route is direct flight, if transit, i'd much prefer CX xHKG. But their seat is a pain, just hoping they speed up their progress of refitting.

SMcLean
Mar 28, 12, 9:19 pm
The only benefit of NZ that route is direct flight, if transit, i'd much prefer CX xHKG. But their seat is a pain, just hoping they speed up their progress of refitting.


True. The other downside of CX is having to sit on the taxiway in Beijing while Air China jumps the queue. Connections, eh? :D

Xiaotung
Mar 28, 12, 9:34 pm
True. The other downside of CX is having to sit on the taxiway in Beijing while Air China jumps the queue. Connections, eh? :D

I think international flights always have some priority over domestic flights.

minhaoxue
Mar 29, 12, 10:58 am
Who was this route geared toward with only two flights per week. The business flyer requires frequency and it appears the "wealthy" Chinese tourist theory did not materialize.

moondog
Mar 29, 12, 12:29 pm
Sandeep Bahl is a great person; hiring him was a smart move on NZ's part (if true). He is/was pretty much top dog for DL in Greater China (far more flights/pax than NZ).

SMcLean
Mar 29, 12, 4:06 pm
I think international flights always have some priority over domestic flights.


In that case, Air China must have had a monopoly on the international flights that day, as we (and other foreign carriers - I wasn't aware that foreign carriers were allowed to fly domestic in China?) sat in queue on the taxiway as Air China after Air China bypassed that queue....

The Captain was most apologetic about all the lost slots - but it really wasn't his fault. Queue jumping really isn't a good idea during the day - it's too easy for passengers to see and identify what going on.

;)

123dd
Mar 29, 12, 4:33 pm
In that case, Air China must have had a monopoly on the international flights that day, as we (and other foreign carriers - I wasn't aware that foreign carriers were allowed to fly domestic in China?) sat in queue on the taxiway as Air China after Air China bypassed that queue....

The Captain was most apologetic about all the lost slots - but it really wasn't his fault. Queue jumping really isn't a good idea during the day - it's too easy for passengers to see and identify what going on.

;)

I heard some explanation for that, but not sure how true it is.

Apparently, in busier airports, ATC would actually hold widebody aircraft to clear queues of narrow bodies for take offs. After a widebody took off, it requires much bigger clearance than a narrow body. Late last year, i was on the CZ A380 flight out of PEK, and we just sat there seeing all others little jets taking off, including other CZs too...

But, that's just hearsay...

usa18dca
Mar 31, 12, 12:59 am
Bummer as I'm flying AKL-PVG next week however I really want the AKL-PEK line for Flight Memory.

Reason077
Mar 31, 12, 4:17 am
Apparently, in busier airports, ATC would actually hold widebody aircraft to clear queues of narrow bodies for take offs. After a widebody took off, it requires much bigger clearance than a narrow body.

This is correct. Due to wake turbulance, narrow body aircraft require more separation at take-off or landing if they are following a wide body ("heavy") aircraft.

So if the airport is busy, it is more optimal to try and have flights take off in groups of narrow and wide-body aircraft rather than mixing them together.

This is why you might sometimes see smaller (or larger) aircraft "jumping the queue" at busy airports.

Shimon
Apr 18, 12, 9:03 pm
Wow, this is not expected, been on that route couple of times, completely packed....


With people forwarding to Shanghai and other places. AKL - PVG - PEK makes more sense than AKL - PEK - PVG.

I know I have done AKL - PEK - PVG with a considerable amount of people joining me on the PVG / SHA connections.

Kiwi Flyer
Apr 20, 12, 9:25 pm
With people forwarding to Shanghai and other places. AKL - PVG - PEK makes more sense than AKL - PEK - PVG.

I know I have done AKL - PEK - PVG with a considerable amount of people joining me on the PVG / SHA connections.

On the day I recently flew AKL-PVG there were no convenient connections to PEK from PVG and very few CA flights to PEK. Of course you could change airports in Shanghai but that isn't very convenient either.

WLGNZ
Apr 21, 12, 3:12 am
Duplicate. Please delete (or can I do this??)

WLGNZ
Apr 21, 12, 3:14 am
On the day I recently flew AKL-PVG there were no convenient connections to PEK from PVG and very few CA flights to PEK. Of course you could change airports in Shanghai but that isn't very convenient either.

Plenty of flights PVG-PEK that connect nicely of AirNZ, as long as you are not fussy on airline. Probably will not work as AirNZ codeshare though.
Having a wine in Shanghai right now and the sun is just about breaking through the pollution :)

Shimon
Apr 21, 12, 3:17 am
Change airports? There are a ton of flights from PVG to PEK from many airlines. If the flight arrived at 6:30am they could connect on to the CA flight at 7:30AM. The current connection with CA 985 at 11:30AM is too late. MU 5129 at 9:20AM would be a suitable connection for the current arrival time without looking into the LCC that do this route.



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