Air New Zealand Air Points - Air NZ 2009 results presentation

Selected information of interest to FFs.
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No mention of North Asia expansion (should make at least one FTer happy).

Further development of Airpoints is one of 7 strategic priorities.

New seating in 77W due late 2010.

Increase focus on new media marketing.

Value of airpoints balances has fallen significantly from $224 million to $212 million. The proportion expected to be redeemed beyond 1 year from balance date has increased from 51% to 54%.

Well done on NZ making a profit in these hard times. For a small airline they have done very well, during this down turn.

Cant wait to see the 77W product next year, Business suites maybe?

The North Asia expansion is just a joke.

Expertflyer clearly shows that Shanghai and Beijing flights are routinely selling fewer than half a dozen of the 26 Business Premier beds and even less of the 36 Premium Economy seats, and we all know that the Economy yields are a race to the bottom between Chinese package tourists and VFR Chinese students. Have any of us ever met a non-ethnically Chinese New Zealander who has ever bought an Air New Zealand ticket to Shanghai or Beijing? I certainly haven't.

The only good thing is that AKL-HKG-LHR has been pulverised by AKL-LAX-LHR and is now back down to the five times weekly service it was before the extension to London.

Have any of us ever met a non-ethnically Chinese New Zealander who has ever bought an Air New Zealand ticket to Shanghai or Beijing? I certainly haven't.
Yes, quite a few. Most Kiwis who need to get from NZ to China will take this service if the schedule works. I'm at a conference in Beijing with at least one Kiwi who took the Beijing flight; and my brother in law fairly regularly patronises AKL-PVG in Business Premier. The CEO of our NZ operations takes the PVG flight regularly to get to HQ... etc.

The North Asia expansion is just a joke.

Have any of us ever met a non-ethnically Chinese New Zealander who has ever bought an Air New Zealand ticket to Shanghai or Beijing? I certainly haven't.

. speaking for myself as a 'non-ethnically Chinese New Zealander' when I flew PVG-AKL about 18 months ago the J class cabin was pretty well full of 'non-ethnically Chinese New Zealanders'

anyway , back on topic , while this is not the most fantastic result it is certainly better than most airlines are making at the moment , hopefully when the economic cycle swings back up again NZ will be well placed to take advantage of it . Congrats to all NZ management and employees on managing to scrape a small profit given the current economic circumstances ^¨

I'm a Maori/Caucasian who has flown AKL-PEK with Air New Zealand. :cool:

It is quite telling though when business class seats to PEK and PVG can be on sale for half the price of a business class seat to North America, given the travel distance is similar.

Have any of us ever met a non-ethnically Chinese New Zealander who has ever bought an Air New Zealand ticket to Shanghai or Beijing? I certainly haven't.

Certainly I am one (both PVG & PEK) and plenty others on my flights too.

Have any of us ever met a non-ethnically Chinese New Zealander who has ever bought an Air New Zealand ticket to Shanghai or Beijing?

Yes to PEK. Front of the plane had two empty seats and maybe two ethnic asians. Back of the plane was packed with I think two non-ethnic asians.

The North Asia expansion is just a joke.

Expertflyer clearly shows that Shanghai and Beijing flights are routinely selling fewer than half a dozen of the 26 Business Premier beds and even less of the 36 Premium Economy seats, and we all know that the Economy yields are a race to the bottom between Chinese package tourists and VFR Chinese students. Have any of us ever met a non-ethnically Chinese New Zealander who has ever bought an Air New Zealand ticket to Shanghai or Beijing? I certainly haven't.

As a kiwi thru-and-thru, who has just completed their fifth trip this year to China in J class, I have certainly seen lotsa non-chinese on these flights. However the Chinese are predominantly in zoo class.

Checkout the zoo that is PVG check-in for a good representative sample.... Worse than the driving on Shanghai streeets!

You are right however, they are selling very few J class seats, knowing the crew pretty well, I understand that most J class passengers are upgrades, running at more than 70% some flights! Hence the reason that prem econ is empty, I think my flight this week would have had max 5 people in prem econ, whereas business was ~80% full. With the recent $1777 prem econ fares and an upgrade, makes business prem very cheap.

I do understand however, there are/were plans afoot to expand flights from China to elsewhere, and assume this may have already happened had it not been for the GFC - will be interesting to see if these plans do eventuate.

As a kiwi thru-and-thru, who has just completed their fifth trip to China in J class, I have certainly seen lotsa non-chinese on these flights. However the Chinese are predominantly in zoo class.

Checkout the zoo that is PVG check-in for a good representative sample.... Worse than the driving on Shanghai streeets!

You are right however, they are selling very few J class seats, knowing the crew pretty well, I understand that most J class passengers are upgrades, running at more than 70% some flights! Hence the reason that prem econ is empty, I think my flight this week would have had max 5 people in prem econ, whereas business was ~80% full. With the recent $1777 prem econ fares and an upgrade, makes business prem very cheap.

I do understand however, there are/were plans afoot to expand flights from China to elsewhere, and assume this may have already happened had it not been for the GFC - will be interesting to see if these plans do eventuate.

It is not hard to understand the reason why NZ are selling heavy discount tickets to Mainland China is for competitive reasons when the likes of Air China are selling a little over $3000 for a J class seat via MEL or SYD.

I thought the crew had no idea who's upgrades and who's not. I take it was just your assumption. I personally met Rob Fyfe in AKL lounge a few weeks ago and he said plans to expand beyond Shanghai will have to wait until the first B787 arrives which is likely 2014 but of course anything can happen with their being nimble approach.

It is not hard to understand the reason why NZ are selling heavy discount tickets to Mainland China is for competitive reasons when the likes of Air China are selling a little over $3000 for a J class seat via MEL or SYD.

Yes, but who in their right mind would fly Air China.... Even Qantas is better than them....

I thought the crew had no idea who's upgrades and who's not. I take it was just your assumption. I personally met Rob Fyfe in AKL lounge a few weeks ago and he said plans to expand beyond Shanghai will have to wait until the first B787 arrives which is likely 2014 but of course anything can happen with their being nimble approach.

As far as I am aware, the crew do not know individually who has upgraded, but they do know numbers of upgrades.

It is not my assumption, it is what I have been told.

Yes, but who in their right mind would fly Air China.... Even Qantas is better than them....

I think a lot of people would. Air China co-share with NZ on all Aussie flights. The price is right and possibly it earns you more Airpoints.

....VFR Chinese students. Have any of us ever met a non-ethnically Chinese New Zealander who has ever bought an Air New Zealand ticket to Shanghai or Beijing? I certainly haven't.

Am I right to interpret that "VFR" stands for Very F***&^% Rich :D, or something else?

I think DCF is right regarding the economy class. In Business Premier, the opposite is true.

...Checkout the zoo that is PVG check-in for a good representative sample.... Worse than the driving on Shanghai streeets!

You are right however, they are selling very few J class seats, knowing the crew pretty well, I understand that most J class passengers are upgrades, running at more than 70% some flights! Hence the reason that prem econ is empty, I think my flight this week would have had max 5 people in prem econ, whereas business was ~80% full. With the recent $1777 prem econ fares and an upgrade, makes business prem very cheap.

I do understand however, there are/were plans afoot to expand flights from China to elsewhere, and assume this may have already happened had it not been for the GFC - will be interesting to see if these plans do eventuate.

Better than the streets in Guangzhou and Beijing I tell ya... Shanghai is probably the best out of the big 3 in terms of traffic and general order.

The GFC will be there as long as necessary. I thought Air NZ wanted to fly PVG-FRA; small chance I say, the Chinese govt will want to protect CA and FM, and I don't see LH happy to see NZ flying the same route as they do.

NZ has a better chance getting 5th freedom from PEK, and to possibly second-tier European cities like Moscow/St Petersburg (well if there's no GFR :D hey SQ does MOW-IAH so you never know), MAD/BCN or other British airports (to connect with BD/VS?)

$1777 prem eco deal was pretty good; the normal price range ($2500~) won't work - people who have $$ will fly in J and who don't will fly in Y or other carriers. Even people who have don't necessarily like the value proposition of prem eco. $2500 can get you J on Royal Brunei or Air China at some times of the year.

Yes, but who in their right mind would fly Air China.... Even Qantas is better than them.....

If CA has flatbeds on CN-AU routes like they have on CN-US, then it's a pretty good deal. Passenger who choose Air China over others are either for price or connection (other domestic cities outside the big 3) reasons.

Now I know I shouldn't listen to strange men in bars....:D

...but in a certain NZ lounge recently I got talking to an apparently credible chap who claimed to have been working on one aspect of the new 77W cabin....

He suggested merely that it ws the Y and Y+ seating that was the focus...

FWIW....;)

VFR = visiting friends or relatives (as opposed to travel for business reasons).

I thought Air NZ wanted to fly PVG-FRA; small chance I say....

Maybe, but why would they fly a route that is already flown by a *A carrier, they have pulled out of nearly all other routes that they are not the sole *A carrier on.

I understood it was PVG/PEK-CDG, but buggered if I know why anyone would want to go within a million miles of that airport!

FYI - Concierge should often be able to know who is an upgrade, simply by comparing the pre-flight information with the actual - as there is no Concierge service on China flights at the moment, you're probably incognito, unless ground staff include the information in the crew brief.