Wider impact of Covid-19 on Air NZ

Old Mar 4, 2020, 10:36 pm
  #76  
 
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I got a message from one hotel loyalty chain that extended their loyalty status by an extra year, can't remember which it was. It was an interesting move. I honestly doubt Air NZ will do anything like that but I am happy to be proven wrong. Otherwise I would bet their Elite headcount would halve next year. Surely most of their elites are international travellers working jobs that require it.
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Old Mar 4, 2020, 10:47 pm
  #77  
 
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Air NZ have announced flexibility on all new intl flights booked from today until the end of March - as many changes as you may need with no service fees, just the usual fare difference.
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Old Mar 4, 2020, 11:50 pm
  #78  
 
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Originally Posted by sbiddle
Air NZ have announced flexibility on all new intl flights booked from today until the end of March - as many changes as you may need with no service fees, just the usual fare difference.
Well, that will encourage people to book and hope things improve knowing they have flexibility. But with many organisations effectively banning travel there will still be a collapse in status. Maybe that doesn't bother them too much.
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Old Mar 5, 2020, 12:45 am
  #79  
 
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Elites

Originally Posted by stick1
My organisation has basically banned travel to any country where there is "community spread" even if only a handful of people are infected. So that rules out a lot of places (including most East Asian countries, USA, most of Europe). And domestic travel is being discouraged for non-essential reasons.

If this drags on for much longer a lot of Elites/Golds will lose their status, unless Air NZ steps in with some sort of support mechanism. Guess that might solve the lounge issue....
probably most elites have many banked years so will not affect the total numbers!
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Old Mar 5, 2020, 2:31 am
  #80  
 
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My travel has not changed. Storm in a tea cup. No face mask is going to help you. Normal hygiene rules apply.

My 7 day door to door trips to Atlanta and Chicago do not take a back burner. I feel like schit when I get home regardless.

Topped up on cheap AKL - SYD flights and NZ Domestic as well as a super cheap (comparatively) AKL - IAH - ATL - ORD - SFO - AKL for November.

Dont listen to the media and you will be fine
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Old Mar 5, 2020, 4:42 am
  #81  
 
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Originally Posted by stick1
If this drags on for much longer a lot of Elites/Golds will lose their status, unless Air NZ steps in with some sort of support mechanism. Guess that might solve the lounge issue....
If the numbers fall off enough maybe Elite Xmas gifts will return for the survivors.
XD

I could be tempted to book for SC bonus and a decent beef fillet inflight.
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Old Mar 5, 2020, 7:50 pm
  #82  
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I stand by my earlier comments.

Singapore and Hong Kong are now transit ports which lead to self-quarantine.

Most of the recent Australian cases involve passengers returning from Iran on the ME3.

So suddenly for passengers Emirates, Singapore Airlines and Cathay Pacific are the problem, not the solution. Unless they fancy two weeks self-quarantine after their overseas trip.

So it turns out that Air NZs London route gave it a diversified portfolio and some protection against exactly what is happening.

But of course selling that LHR slot pair raised NZ$40 million, which I hope will not have been an incentive in terms of executive bonuses.

The airline has put all its eggs in a Pacific Rim basket when the Pacific Rim is periodically going to be the problem, not the solution.

Last edited by DCF; Mar 6, 2020 at 5:02 pm
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Old Mar 5, 2020, 9:30 pm
  #83  
 
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Originally Posted by DCF
I stand by my earlier comments.

Singapore and Hong Kong are now transit ports which lead to self-quarantine.

Most of the Australian cases involve passengers returning from Iran on the ME3.

Suddenly it turns out that Air NZs London route gave it a diversified portfolio and some protection against exactly what is happening.

But of course that LHR slot pair raised tens of millions of dollars as a quick buck, which I presume will have flowed on to executive bonuses.

The airline has put all its eggs in a Pacific Rim basket when the Pacific Rim is periodically going to be the problem, not the solution.
While I kind of agree, the simple fact is Air NZ carried ~150 pax from NZ through to LHR every day. That's a mere fraction of the number that travel the route.

For passengers who want to travel from NZ to LHR via the US there are a myriad of existing codeshare and alliance partners they can still fly that route on via LAX, SFO and YVR that are all just as easy as NZ1 / NZ2. Yes it's not NZ metal, but I think sometimes we forget that lots of people simply don't care about that.
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Old Mar 6, 2020, 1:42 am
  #84  
 
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Originally Posted by DCF
Suddenly it turns out that Air NZs London route gave it a diversified portfolio and some protection against exactly what is happening.

But of course that LHR slot pair raised tens of millions of dollars as a quick buck, which I presume will have flowed on to executive bonuses.

The airline has put all its eggs in a Pacific Rim basket when the Pacific Rim is periodically going to be the problem, not the solution.
So your suggestion is to run an unprofitable route for years purely as a back-up plan in case something may impact other routes?!? To me that doesnt sound like the smartest use of assets especially seeing as youre planning for something completely unforeseen.
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Old Mar 6, 2020, 4:58 pm
  #85  
 
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Plenty of options to connect at LAX to LHR via other airlines, LAX-LHR has been loss making for years.
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Old Mar 6, 2020, 4:58 pm
  #86  
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Originally Posted by AviationNZ
So your suggestion is to run an unprofitable route for years purely as a back-up plan in case something may impact other routes?!? To me that doesnt sound like the smartest use of assets especially seeing as youre planning for something completely unforeseen.
Nobody has EVER claimed that LAX-LHR was unprofitable: it has always been one of the most profitable long-haul sectors in the network.

Your comments probably apply to Auckland-Shanghai, which has never attained profitability, but has been carried as a long-term investment.

Last edited by DCF; Mar 6, 2020 at 5:04 pm
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Old Mar 6, 2020, 4:59 pm
  #87  
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Originally Posted by Rebound
Plenty of options to connect at LAX to LHR via other airlines, LAX-LHR has been loss making for years.
No, it hasnt.

Not according to the airlines published financials each year.
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Old Mar 6, 2020, 5:11 pm
  #88  
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Originally Posted by sbiddle
While I kind of agree, the simple fact is Air NZ carried ~150 pax from NZ through to LHR every day. That's a mere fraction of the number that travel the route.

For passengers who want to travel from NZ to LHR via the US there are a myriad of existing codeshare and alliance partners they can still fly that route on via LAX, SFO and YVR that are all just as easy as NZ1 / NZ2. Yes it's not NZ metal, but I think sometimes we forget that lots of people simply don't care about that.
The route was never about through traffic.

It was about traffic rights between two huge rich cities, whose west/east separation makes one daily frequency competitive and viable.

But Air NZ has hurt itself for years on this: it used to be the default European carrier to Apia, Honolulu, Tonga and Tahiti. Which accounted for roughly 50 passengers each day. Every cut on the Pacific network to LA flowed on to harming feed from Europe.

The main problem now will be the total lack of diversification in the international network. If Asia or America catches a cold, Air New Zealand will die of pneumonia.

The Pacific Rim can be part of a strategy, but not the whole thing.

And lastly, London has a crew base so we are not discussing two sector flights.

Just ask yourself about the relative economics of:

Auckland - Buenos Aires
Auckland - Shanghai
Los Angeles - London
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Old Mar 6, 2020, 5:15 pm
  #89  
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Originally Posted by Rebound
Plenty of options to connect at LAX to LHR via other airlines, LAX-LHR has been loss making for years.
It was hard enough on NZ1/2.

Now if we want to fly to London we are going to have to change to United at LAX or SFO or ORD or EWR.

In the case of LAX it will involve reclaiming baggage, changing terminals and realistically it will require an overnight transit in both directions.

Nobody will do it.
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Old Mar 6, 2020, 6:13 pm
  #90  
 
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LAX-LHR has not been "loss making for years". It has been (and was when cancelled last year) a profitable route.
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