There was no mainland China market to NZ before NZ started PVG.
But not only can the Chinese carriers carry the market now, their cost base and efficiencies mean that Air NZ can never make a profit to Shanghai ever, under any circumstances.
Even Qantas have pulled out of Shanghai. For Air NZ to continue after two decades of neverending (and now widening) losses means that the airline is carrying a vanity project which is a basket case.
And with frames at a premium, Shanghai is just a waste of aircraft and capital.
how do you know PVG runs at a loss? Facts please. It also also an option to Europe for many