KL809

I wonder if routes like Beijing are a bit financially challenging?

At the same time perhaps they should consider Denpasar Bali? Very popular destination for Australians, but no direct service from New Zealand.

KL809

Xiaotung

NZ fought really hard for the PEK slot and I doubt they are willing to give it up. I think NZ really need to explore markets that have nothing to do with New Zealand like what QF is about to do. The New Zealand market is simply too small.

poopbunny

But that means a painful LAX transfer for AKL-LHR.

I suspect *A is relying on NZ for their only non-stop HKG-LHR connection.

poopbunny

AKL-PEK flights have a poor load factor outside Chinese public holidays and possibly school holidays. Although the flights are about 2 hours longer than AKL-HKG, they are usually cheaper. I suspect Passenger Revenue per Available Seat Mile is probably poor. As NZ fought hard for the route, the twice weekly flight probably signals a strategic emerging market route rather than a money making one. There are times I had to fly SQ via SIN because NZ just did not have a flight that day.

MrSydney

Nope too low yielding. They tried it in the 80s and it was a dud.

QTFLYER

I think they will leave all asian routes as they are except killing the hgk-lhr segment and codesharing with vs. Once air nz opens a route to south america it will be a nice *A route to asia without a usa transfer for our s.american/asian friends Did I not read somewhere they are about to start a second akl-hgk flight? Also please scrap the terrible stopover in lax and replace it with yvr en-rout to lhr

NZ_Traveller

+1

This would be my preferred route for a variety of reasons. Plus it'd be great to have a decent lounge at YVR. The Maple Leaf lounge in the international terminal just doesn't cut it IMO.

Someone mentioned a while back, that AirNZ had sought permission for flying over Canada which leads us to believe a AKL-YVR-LHR route is a distinct possibility.

highpeak1

I got the impression the issue for the AKL-HKG-LHR route was the LHR-HKG sector. Unlike the LHR-LAX-AKL routing, the HKG routing suffered from competition from CX/BA and the like. Perhaps with QF leaving the LHR-HKG market there may be some respite for NZ.

Despite its phenomenal growth, I always get the impression that airlines struggle to make money in China from Australia and New Zealand. I think it is significant that QF only flies to PVG (probably an expo thing) and that's it.

poopbunny

Star Alliance is in serious need of a South American link and NZ can fill it.

After all OneWorld has Lan Chile.

I would take Buenos Aires as a stop over YVR any day.

FlyingFilmGuy

They don't only need the link, but an improved route network on the continent. Here's hoping that if and when the LAN / TAM merger goes through, it ends with LAN switching to *A, rather than TAM to One World.

mmonster

not really....
the slots held by QF (thrice a week HKG/LHR and LHR/HKG) are given on to BA, which means that the frequency remains the same.

NZ is the only *A member that flies the HKG/LHR route, and because of its lack of frequency/commitment, it is not easy to attract J class pax.

BA/CX are operating up to 4 flights each daily out to LHR from HKG and that is a significant advantage. NZ used to have daily flights out to LHR but now reduced to 5 times a week...

I feel sorry for NZ as I do believe they have a good product from HKG to LHR, but just that it is not as price competitive and not as flexible

VS should join *A and NZ co-share on the route might help.

kiwibigdave

Welcome to FT KL809.

Presumably many international routes cycle from profit to loss and back as the spending power of the target PAX fluctutates (local economies, exchange rates etc etc) so turning entire routes on and off as those economics dictate would be a good thing. e.g. Right now getting farmers and miners to the USA to spend their Fonterra payouts / commodity-based incomes at 85c to the USD sounds like a plan.

Canterbury to Texas? West Coast to Hawaii?

deconz

The QF service HKG/LHR/HKG is daily with slots being leased to BA in March next year. BA have scheduled three extra LHR/HKG/LHR services a week from that point so frequency decreases!!!

highpeak1

Having had a look at the LHR-HKG yields (I am fortunate to be able to peek at these things), I can see that OneWorld is clearly managing to maintain their average fares at rates considerably higher than a minority player such as NZ. Whilst not the cheapest (Air China and Aeroflot enjoy those positions), NZ clearly struggles.

KL809

It would be interesting to do the analysis on the changes in the market conditions since the 1980's.

Air NZ could encourage some wholesale travel agents to come up with some great air/resort packages in Bali to make it a competitive offer against Thailand as a destination.

I suspect a holiday in Bail would be cheaper than Queensland for New Zealanders like it is for most Australians.

No doubt a boffin at Air NZ would have already poured over the numbers, if not they probably should.