Air New Zealand says it may have to review its transtasman service "at a significant cost to consumers" because Australia's competition watchdog won't let it join forces with Qantas....

...Infratil director Tim Brown said he was sceptical of Air New Zealand's threat to cut services but the airline had made those decisions by itself.

"I hope Air NZ manages to stay and grow its business on the Tasman. But if its not working, that's life," he said....

...Air New Zealand is one company tackling its emissions problem and it has a big problem - 3.6 million tonnes of CO2 this financial year with 92 per cent of it from the use of jet fuel (one tonne of CO2 would fill a two-storey, three-bedroom house).

For the past three years the company has worked with science institute Landcare Research to develop software to monitor its CO2 emissions footprint and to work out the estimated carbon footprint of its operation per passenger kilometre.

The airline can show, it says, that the long-haul fleet has reduced fuel burn, and therefore CO2 emissions, per passenger kilometre by an average 2 per cent a year....

The Australian Competition and Consumer Commission's rejection of Air New Zealand and Qantas' code share proposal, has been welcomed by Wellington City Council.

The watchdog has issued a draft determination, indicating it intends to turn down the application from the airlines to operate a code share agreement on transtasman routes....

Bombardier Aerospace announced today that Air New Zealand has placed a firm order for three 50-seat Bombardier Q300 turboprop airliners on behalf of its wholly owned regional airline subsidiary Air Nelson. The order represents the conversion of options taken as part of Air New Zealand's initial order which was announced on October 10, 2004. At that time, Air New Zealand placed a firm order for 17 Q300 aircraft and took options on an additional 10 Q300 and 13 70-seat Bombardier Q400 aircraft. As of July 31, 2006, nine Q300 aircraft had been delivered to Air New Zealand.

The value of the transaction announced today based on Q300 list prices is approximately $48.6 million US.

"The performance and reliability of the Bombardier Q300 was a key factor for us in choosing this aircraft type for Air Nelson's fleet," said John Hambleton, General Manager, Air Nelson. "These aircraft have supported Air Nelson to steadily grow its markets and better serve regional New Zealand." "Reaction to the Q300 from both crew and customers has been outstanding. Our flight attendants and customers are impressed by the spaciousness, quietness and vibration-free environment of the cabin," said Mr. Hambleton.

"We are gratified by the reaction of Air New Zealand, Air Nelson and their passengers to the Bombardier Q300," said Steven Ridolfi, President, Bombardier Regional Aircraft. "It is more evidence that the Q300 is the most comfortable and cost-effective turboprop in the 50-seat class." Mr. Ridolfi noted that Air New Zealand was the ninth Star Alliance partner to operate Bombardier Q-Series turboprops or CRJ regional jets, joining Adria Airways, Air Canada Jazz, Air Nippon Network Ltd., Austrian arrows, Lufthansa Regional, SAS, United Express and US Airways Express. These airlines have ordered more than 600 Bombardier regional aircraft.

More than a year of planning and millions of dollars of investment will be put into action late tonight when Air New Zealand's first direct flight to Shanghai takes off.

Among the 313 passengers on fully booked flight NZ89 leaving Auckland at 11.59pm will be Trade Minister Phil Goff, a 70-strong trade delegation, a 20-plus media contingent and top business people.

Air New Zealand chief executive Rob Fyfe, who will also make the trip, likens the first-flight extravaganza to organising a party at home. ...

Air New Zealand and Qantas are likely to go to Australia's Competition Tribunal to obtain approval for a proposed code share agreement; after being knocked back by the competition watchdog across the Tasman.

In a draft decision, the Australian Competition & Consumer Commission said on Friday that consumers would face higher air fares and fewer flying options at key times.

Air New Zealand's management will meet on Monday to consider their response to the ACCC's 169 page report....

The largest trade delegation to ever represent New Zealand leaves Auckland tonight, led by Trade Minister Phil Goff on the first leg of his visit to China, Vietnam and Australia.

"The delegation, consisting of more than 120 business people, trade and tourism officials, local government leaders and journalists will travel to China on Air New Zealand's inaugural Auckland to Shanghai direct flight tonight", said Mr Goff.

"There is a full programme of trade focused activities for the delegation over three days including an NZTE seminar on conducting business in China which will be attended by many of the business people in the delegation and a large number of representatives of New Zealand companies already trading in China.

"In Shanghai I will also visit a number of established New Zealand businesses, open a New Zealand owned manufacturing plant and address the Shanghai Academy of Social Sciences before visiting the site of the 2010 World Expo where New Zealand will be appearing on the world stage.

"From Shanghai I will travel to Beijing for a series of official calls on Chinese Vice Premier Hui Liangu and the ministers of Defence, Agriculture and Commerce. I will address the Chinese National Defence University and visit New Zealand companies like Pan Pac, Intuto and Nordanis who are established in the major port area of Tianjin, North of Beijing.

"The visit to China ends on November 10 when I travel to Hanoi for the APEC summit. APEC will be followed by a series of bilateral meetings with my Vietnamese colleagues in relevant portfolio areas before departing Vietnam for Melbourne.

"Williamstown, Melbourne is home to the Tenix shipyards and on Saturday, November 18 I will attend the launch, by Dame Silvia Cartwright of what will become HMNZS OTAGO. The OTAGO is the first of two new Offshore Patrol Vessel's being constructed for the Royal New Zealand Navy under the auspices of Project Protector.

"Following the launch of OTAGO I will inspect the Multi Role Vessel CANTERBURY which is undergoing final fit out and meet some of her crew who are completing specialised training, prior to the ship entering service in 2007," said Mr Goff.

Air New Zealand's first direct flight into China touches down in Shanghai around midday.

It is carrying a plane load of delegates who will attend the biggest trade conference ever to leave New Zealand.

Air New Zealand spokesman Peter Elmsly says as passengers disembark at Pudong Airport, a Maori welcome and Chinese celebrations will get underway....

Air New Zealand could be in for a long wait if it wants to appeal against the veto of its proposed code-share agreement with Qantas by Australia's competition watchdog....

Air New Zealand says a new electronic baggage check-in system, which would collect $5 million domestically a year, is aimed at cutting costs and does not represent a change to policy.

The system, being trialled in Auckland, automatically calculates the weight of baggage being checked through and any applicable charges, Air NZ executive Norm Thompson said today.

Domestic travellers are charged $5 per kilogram of baggage over 20kg, and can carry on a further 7kg free. Charges are higher for international travellers....

A "new era" of stronger relations between New Zealand and China has begun with the start of direct Air New Zealand services to Shanghai, Trade Minister Phil Goff says.

Speaking yesterday at Shanghai Airport under a banner that read: "Building a bridge between China and New Zealand", he said that lack of direct flights to China had been "a major difficulty" for travel and trade.

Air NZ's first flight, NZ89, landed in Shanghai yesterday with Mr Goff, a 70-strong trade delegation and a large media contingent on board....

Staff at Air New Zealand's Call Centre in Christchurch should find out today whether their jobs are safe.

The airline indicated last month it was planning to axe the jobs of the 86 workers in favour of downsizing and centralising the service in Auckland.

Workers were due to be given the final decision last week but more time was taken to consider submissions.

Why doesn't Air New Zealand stop the absurd whining over its failed attempts to form a transtasman cartel, get its employees back onside and concentrate on leveraging the growth streams of its business?

The airline that professes to be "our" national flag carrier is mutating into a sulky, somewhat recalcitrant company under the management of its new CEO Rob Fyfe - whom its unions now call "Fyfe the knife"....