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7JetSet7 Code: ANZ
Status: Operational
Employees 10829
Web: airnewzealand.co.nz
Email: steve.bayliss@airnz.co.nz
Telephone: +64 9 336 2400
Fax: +64 9 336 2401

Click below for data links:
ANZ-2002-01 NEWS.jpg
ANZ-2002-02 NEWS.jpg
ANZ-2003-07 NEWS A320
ANZ-2003-10 NEWS-A320
ANZ-2004-03 NEWS
ANZ-2004-03 NEWS-A
ANZ-2004-09 NEWS A320 DLVRY-A
ANZ-2004-09 NEWS A320 SAL
ANZ-2004-09 NEWS-A320 DLVRY
ANZ-2004-09 NEWS-A320 DLVRY-B
ANZ-2004-10 News
ANZ-2004-11 NEWS-747-400
ANZ-2004-11-A320 SAL
ANZ-2005-01 2004 STATS
ANZ-2005-01 2004-WORLD-RPK
ANZ-2005-05 NEWS-A
ANZ-2005-10 NEWS 777
ANZ-2006-06 AKL
ANZ-2008-05 777-PERF
ANZ-2008-11 ACCDT
ANZ-2009-02 PR AWARD
ANZ-2009-07 767 WINGLETS
ANZ-2009-12 A320 ORDER
ANZ-2009-12 A320 SHARKLETS
ANZ-2011-01-A320-ALL BLACK
ANZ-2012-11 - 777-300ER HOBBIT
ANZ-2013-06 - NEW LIVERY - 787-9 SHOWN
ANZ-2013-08 - 787-9 ROLLOUT-A
ANZ-2013-08 787-9 ROLLOUT
ANZ-2013-09 - NEW LIVERY
ANZ-2014-01 - 787-9 TO NZ
ANZ-2014-04-777 C CLASS LHR-LAX-A
ANZ-2014-04-777 C CLASS LHR-LAX-B
ANZ-2014-04-777 C CLASS LHR-LAX-C
ANZ-2014-04-777 C CLASS LHR-LAX-D
ANZ-2014-04-777 C CLASS LHR-LAX-E
ANZ-2014-04-787-9 ROLLOUT-A
ANZ-2014-04-787-9 ROLLOUT-B
ANZ-2014-05 - 787-9 1ST FLIGHT
ANZ-2014-06 - 1ST 787-9-X
ANZ-2014-06 - 1ST 787-9-Y
ANZ-2014-07-NEW COLORS-777-219ER
ANZ-2014-08-1ST 787-9 INTNL FLIGHT
ANZ-2014-09 - 747 RETIRES-A
ANZ-2014-09 - 747 RETIRES-B
ANZ-2014-09 - 747 RETIRES-C
ANZ-2014-12 - PLUS 2 787-9 JETS
ANZ-2015-08 - ANZES.jpg
ANZ-2015-08 - Top 10 Premium Economy Class-2nd.jpg
ANZ-2015-12 - Auckland to Houston.jpg
ANZ-2016-10 Passenger Emma Te Paa.jpg
ANZ-2017-09 787-9 ZK-NZE.jpg
ANZ-2018-11 AKL to Taipei.jpg






1992 = +$61.8 MILLION (NET PROFIT): +11.8% (RPK) TRAFFIC; +10.6% (FTK) FREIGHT TRAFFIC.


AUGUST 1993: 2 767-300ER'S (VN511, 653) DELIVERIES.



DECEMBER 1993: 737-200 (JT8D-15), EX-BRITANNIA (BRI) & 737-200 (JT8D-15A), (ILF) LEASED.





3 737-200'S, EX-AIR MALTA (MLT); 1 747-400 (RT703), EX-VARIG (VAR), (ILF) LEASED; 1 767-319ER (VN654), DELIVERIES. 1 747-400 (CF6-80C2B1F), (ILF) 54 MONTH LEASED.

APRIL 1995: 1 767-300ER (CF6-80C2B6) (VN656) & 747-400 DELIVERIES. 737-200 (PK214) TO COPA (COP) & 767-200 (VB001) TO AIR CANADA (ACN).









DECEMBER 1995: 1 737-200A (JT8D-15A) TO (TEA)-CYPRUS.













1 737-200 (JT8D-15A), EX-AIR MALTA (MLT).

















1 767-319ER (CF6-80C2B6F) (26971) DELIVERY.

JULY 1997: FISCAL YEAR (FY) 1996 = +$153.OO MILLION (+$177.00 MILLION) (NET PROFIT).




TO SWITCH 6 ORDERS 737-300'S TO 737-700'S.








737-2Y5 (23039) RETURNED. 767-200 (23250) FROM BRITANNIA (BRI).

JANUARY 1998: 3 ORDERS 737-300'S (28873, (GUI), 737-33R (29140, 29189); 737-36Q (BOU) LEASED. 1 737-300 (CFM56-3C1) DELIVERY.





737-300 (PR045) DELIVERY.











1 ORDER (OCTOBER 1999) 747-400 (CF6-80C2B1F), (ILF) LEASED.

NET ($MILLION): 19 CAT 219 (493); 20 QAN 198 (186); 21 GUN 137 (87); 22 ASA 127 (75); 23 AFC 120 (27); 24 IBE 110 (23); 25 ANZ 105 (150).

1 JAL 79 (+2%); 2 QAN 59 (+8.4%); 3 SIA 55 (-.1%); 4 ANA 52 (+8.5%); 5 KAL 40 (+5.2%); 6 CAT 39 (-3%); 7 TII 31 (+7.1%); 8 MAS 29 (+2.8%); 9 ANZ 20 (+.8%); 10 GUN 18 (+6.4%); 11 CEA 10 +16.7%).




737-300 (CFM56-3C1) (ZK-NGC) DELIVERY. 2 ORDERS (SEPTEMBER 1998) 747-400'S (27602, EX-PHILIPPINE AIRLINES (PAL), & (29376) NEW).


FISCAL YEAR (FY) 1997 = +$72.7 MILLION (-3.6%).



IN 1997, 47,000 KIWIS (NEW ZEALANDERS) TO CANADA (+21%).







1 ORDER (MARCH 2000) 767-300ER (29388), (ILF) 5 YEAR LEASED.







9,560 EMPLOYEES. SITA: AKLDANZ. (http://www.airnz.co.nz).




FISCAL YEAR (FY) 1998 = +$75.8 MILLION (+$104.1 MILLION) (NET PROFIT).

28 SAS 12.97; 29 CHI 12.64; 30 VAA 12.27; 31 SVA 11.69; 32 ASA 11.27; 33 ANZ 11.15; 34 ANS 10.14; 35 SAA 9.85; 36 SAB 9.53; 37 BEJ 9.07; 38 JAS 8.8.






1 737-300, RETURNED FROM 7 MONTH LEASE TO (LOT). 6 737-200'S (23470, 23471; 23472; 23473; 23474; 23475), SOLD TO AVIACSA (AEJ). 2 737-319'S DELIVERIES, (25606, ZK-NGG; 25607, ZK-NGH). 1 767-35DER (SP-LPA), (LOT) POLISH, 6 MONTH WET-LEASED.




DECEMBER 1999: 737-219C (22994, ZK-NQC) PAINTED WITH "/99 RUGBY WORLD CUP" COLOR SCHEME. 737-319 (25609, ZK-NGJ) LAST 737-300 NEW DELIVERY. SOLD 737-219 (23472) T0 (AEJ).



737-219 (23470) TO (AEJ). 747-219B (22725) TO VIRGIN ATLANTIC (VAA). 1 767-300ER DELIVERY.





BUYS 737-33R (28868) FROM VASP (VSP). 2 737-3K2'S, (ILF) 12 YEAR LEASED.







NET PROFIT ($MILLION): 12 CAT 282; 13 QAN 279; 14 USA 273; 15 KAL 226; 16 SAS 217; 17 AMW 201; 18 ASA 196; 19 JAL 187; 20 SWS 171; 21 IBE 154; 22 ACN 147; 23 TII 140; 24 ANZ 114; 25 ANS 104.

FISCAL YEAR (FY) 1999 = +$113.78 MILLION (+$76.85 MILLION): 19.67 BILLION (RPK) TRAFFIC (+.3%%); 67.9% LF LOAD FACTOR; 833 MILLION (FTK) FREIGHT TRAFFIC (-2.1%); 6.52 MILLION PASSENGERS (PAX) (+1.9%); 9,177 EMPLOYEES.






1 767-319ER (30586) (GEH) LEASED.




1 737-3K2 (26318, ZK-NGL), (ILF) LEASED.


737-219C (22994) SOLD TO AIRWORK, NZ (ANX).

25 VAA 18.31; 26 VAR 16.33; 27 CHI 16.14; 28 SAS 14.07; 29 ANZ 13.81; 30 SVA 12.57; 31 EAD 12.06; 32 SAB 12.04; 33 SAA 12.0.





APRIL 2001: 9,177 EMPLOYEES.

1 737-33S (29072), EX-SOBELAIR (SBL), PEMBROKE (PEB) LEASED. 1 767-204ER (23250) RETURNED TO LESSOR. 1 767-219ER (23326), 1 767-319ER (28745), & 1 747-4F6 (27602) LEASED TO ANSETT (ANS); 23250 TO AIR ATLANTIC ICELANDIC (AID).



3 767-300ER'S (26387; 26388; 26389) WET-LEASED TO ANSETT (ANS).


1 737-3U3 (2988-28738, /98 09 04 N308FL), EX-FRONTIER (FRO), HELLER FINANCE (HEF) LEASED. 1 767-3Q8ER (CF6-80C2) (694-28206, /98 10 01), EX-TRANSAERO (TRX) LEASED.









737-3K2 (2721-27635, /95 24 09 ZK-SJE), EX-TRANSAVIA (TAV), WET-LEASED TO FREEDOM AIR (SPT). 737-3K2 (28085, ZK-NGM), (ILF) LEASED, EX-TRANSAVIA (TAV).




1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.





APRIL 2002: 8,048 EMPLOYEES.



MAY 2002: 5th anniversary of Star Alliance (SAL): (ACN); (ANZ); (AUL);(BMA); (CMA); (DLH); (LAL); (SAS); (SIA); (TII); Tyrolean; (UAL); & (VAR).




747-475 (24896, ZK-NUH), (ILF) LEASED (AGAIN).

June 2002: Will cut -200 more jobs for a total of -1,000, (-10%) of its workforce.

767-319ER (24875), returned to Ansett Worldwide (AWW), leased to Air Niugini (NIU).

July 2002: Heavy maintenance contract for Chilean Navy, P3 Orion, maritime surveillance airplane, to be done at Blenheim.

Escalates its 747-400 "C" check from 5,000 hours/15 months up to 8,500 hours/21 months.

$750 Million, 15/20 orders A320's, including 10 leased.

August 2002: Craig Sinclair, Chief Information Officer, ex-Airways Corporation, (ATC) operator.

September 2002: Australian and New Zealand governments ratified an "open skies" pact, that enables Qantas and Air New Zealand to operate unrestricted services out of each other's countries.

(ANZ) will replace 150 Compaq servers with a single eServerzSeries mainframe, running Linux. This switchover will include getting rid of about 4,000 installations of the Microsoft Exchange e-mail program, and replacing them with Bynari's (www.bynari.net) open-source e-mail application.

In October, code share with Japan Airlines (JAL) to Nagoya (2/week).

2001 Fiscal Year (FY) = -NZ$381 Million/-$155.19 Million (-$681.1 Million).

October 2002: 1 737-37Q (28548, ZK-NGO), GECAS (GEF) leased.

November 2002: Qantas Airways (QAN) will acquire 22.5% stake in Air New Zealand (ANZ) to provide NZ$550 Million in new equity. New Zealand government's stake will be reduced from 82% to 64%. (ANZ)'s domestic and international operations will remain independent, and take on management of (QAN)'s services to, from, and within New Zealand. (ANZ) is a member of the "Star (SAL) Alliance." (QAN) is a member of the "Oneworld (ONW) alliance."

737-204 (22364) sold. 767-204ER (23250) returned to Aerospace Finance.

December 2002: Projects Fiscal Year (FY) 2002 Pre-Tax = + NZ$230 Million/+$115 Million (+NZ$33 Million Net = -NZ$319 Million).

In March, code share with Lufthansa (DLH), Los Angeles to Munich.

737-219 (23475) sold and delivered to Aviacsa (AEJ).

January 2003: Following United Airline's (UAL) withdrawal from New Zealand, (ANZ) has expanded its code share with Air Canada (ACN), from Sydney and Auckland to Los Angeles, + continuing flights to Calgary, Montreal, Vancouver, and Toronto. Also, on Honolulu - Los Angeles (LAX).

737-219 (23473) sold and delivered to (AEJ). 737-3Y5 (25614, 9H-ABS), Air Malta (MLT) wet-leased. Painted 2nd airplane, a 767-300, with "The Lord of the Rings"-theme, flying billboards, following the livery applied to a 747-400. The scene depicts the epic love story of key film characters, "Aragorn" and "Arwen," set against the Remarkables mountain range, near Queenstown. The billboard covers 3,444 sq ft overall. The image was generated in the form of a giant decal, and was applied over a 24-hour period by a crew working from cherry pickers. Although the decal is made from film by 3M and is barely thicker than cling film, the sheer size means that the "Frodo" 747 image weighs 132 lbs and the 767 "Aragorn" 75 lbs.

February 2003: In June, Wellington - Queenstown (daily). In July, Brisbane - Queenstown (Saturdays).

Last 6 months 2002 = +NZ$93.9 Million/+$53.1 Million (-NZ$376.5 Million): 11.4 Billion (RPK) traffic (+7.3%); -2.4% (ASK) capacity; 76.2% LF (+6.9).

March 2003: 8,048 employees.

April 2003: Cuts its service to USA, Hong Kong, and Japan by -3.3% due to Iraq war and deadly, Severe Acute Respiratory Syndrome (SARS) virus alert in Southeast Asia.

May 2003: Air New Zealand (ANZ) moves to capitalize on growing inbound tourism from Canada by expanding its codesharing partnership with fellow Star Alliance (SAL) member, Air Canada (ACN). Will extend to east-west routes within Canada, linking Vancouver with Calgary, Montreal, and Toronto. (ANZ) already code shares with (ACN) between Los Angeles and Vancouver, Toronto, Montreal, Calgary, and Honolulu - Vancouver. In the last year, 39,000 travellers came from Canada to New Zealand, of which 15,000 came from Eastern Canada and 5,400 from Alberta.

July 2003: 7,000 employees.

August 2003: Plans to extend its "no-frills" domestic operations as "Tasman Express" between Australia and New Zealand.

Fiscal Year (FY) 2002 = +NZ$165.7 Million/+$94 Million (-NZ$358.6 Million/-$204.6 Million): 21.48 Billion (RPK) (-4.2%); 72.3% LF; 8.30 Million passengers (PAX) (+6%); 761 Million (FTK) freight traffic (+.8%).

Air New Zealand Engineering Services (ANZES) has launched 2 new heavy maintenance lines for 737/767's. The additional capacity is in response to increased demand for (ANZES) services from major airlines in the region. (http://www.anzes.co.nz). Has begun to recruit maintenance engineers (MT) to support its airframe maintenance operations, including +70 jobs at Christchurch, 20 trainees, and +30 for its Auckland-based Maintenance Engineering (MT) operations.

September 2003: Australia's government competition agency has rejected the proposed alliance between Qantas Airways (QAN) and Air New Zealand (ANZ), saying it is anticompetitive. Both will appeal this decision.

2002 = -$241.4 Million (-$766.5 Million): 21.48 Billion (RPK) (-4.2%); -5.1% (ASK); 72.3% LF (+.7); 8.3 Million (PAX) (+6%); 761 Million (FTK) (+.8%); 9,502 Employees (-11.7%).

28 (VAR) 26.12; 29 (BEJ) 24.00; 30 (SAS) 23.21; 31 (CSR) 22.37; 32 (GUE) 21.90; 33 (ANZ) 21.48; 34 (SAA) 21.28; 35 (ASA) 21.23; 36 (SVA) 20.80; 37 (AAT) 19.93; 38 (EVA) 19.51.

1st A320-232 (2085, ZK-OJA) (ILF) 8 year leased, delivery. A320-232 (2090, ZK-OJB), Lombard Capital leased.

October 2003: Adds 11 weekly trans-Tasman flights. The first A320's will be introduced on the Auckland - Christchurch route with this schedule. Code share with Austrian Airlines Group (AUL), Lauda Air (LAL), Sydney to Vienna, via Kuala Lumpur (5/week) & Austrian Airlines (AUL), Vienna to London.

Unveils a new 4-year strategic business plan that it expects to deliver $169 Million in annual savings by 2007. The savings are to be achieved through more efficient operations in all areas with the use of new technologies and a decrease of labor costs, primaily accomplished by a -15% reduction in approximately 10,000 staff. The plan includes a new management team consisting of: Norm Thompson, Group General Manager Sales & Marketing; Rob Fyfe, Group General Manager Airlines; Craig Sinclair, Group General Manager Ventures; Shane Warbrick, CFO; Vanessa Stoddart, Group General Manager Human Resources (HR) & Organizational Change; Glen Sowry, Group GM-Public Relations & Govt Relations; & John Blair, General Counsel/Company Secretary.

At Annual General Meeting (AGM), stated (ANZ) expects a slight increase in profit +ve for 2003 over (+NZ$220 Million/+$133.3 Million). 3rd Quarter = +2% (RPK); +4.5% (ASK); +250,000 PAX.

New Zealand's competition regulatory authority once again ruled against a proposed merger between Qantas (QAN) and (ANZ). Both country's competition watchdogs have now vetoed the merger.

737-33A (24094), ex-AirCalin (NCI), Volito Aviation, Sweden leased, "D" maintenance check by (ANZES), then wet-leased to Palau Micronesia Air (PMZ). A320-232 (2112, ZK-OJC), Lombard Capital leased.

December 2003: Christchurch - Rotorua (737, daily).

Applies "Lord of the Rings" livery to A320 (ZK-OJA). (ANZ) is a major sponsor of the trilogy series of movies, which were filmed in New Zealand, and has dubbed itself as the "official airline to the Middle Earth." The scene is set against a backdrop of remote George Sound in New Zealand's Fjordland National Park.

January 2004: Last 6 months = +NZ$105 Million/+$72.1 Million (+12%): 73.6% LF (-2.6).

Air New Zealand Engineering Services (ANZES) has launched a suite of complimentary products designed to consolidate its reputation as a true "One Stop Shop" for (MRO) and fleet operation support. It has enhanced its Technical Design capabilities and now offers this as a stand-alone technical design service or, combined with its comprehensive avionics, composite and metal shop capabilities, as a totally integrated design, build and installation package. This service appeals to airline and lease company reconfig requirements where a quality product and speed of delivery are paramount. (ANZES) has provided cost effective, quality Maintenance Repair & Overhaul (MRO) services for over 65 years and continues to offer (FAA)/(JAA) approved, 737's, 747's, & 767's (MRO) services to many airlines around the world. For more info, see: http://ad.doubleclick.net/clk:6953292:8257149:x?http://www.anzes.co.nz

A320-232 (2148, ZK-OJE), Lombard Capital leased.

February 2004: Shareholder (BIL) International (Brierley Investments) sold its remaining 7.8% stake for NZ$ 96.4 Million/US$64.7 Million to institutional shareholders.

(ANZES) provides capability for Airbus A320 family airplanes maintenance. 55% of business is from 3rd party work. Since 1990, has acted as a Maintenance Repair & Overhaul (MRO) contractor for 20 airlines. Has opened +2 hangars in Christchurch. Contracts include Virgin Blue (VOZ) and Pacific Blue 737's maintenance.

In June, code share with United (UAL) & Air Canada (ACN), Auckland - San Francisco, 747-400, 3/week).

737-36Q (29140) returned to Boullioun (BOU).

March 2004: 7th A320 delivery. Next delivery in September. The A320's will progressively replace 737-300's & 767-200's that are slated for retirement.

April 2004: 2 737-36Q's (29140; 29189) returned to Boullioun (BOU), leased to Shandong (SHG). 767-219ER (23327), WFU. Plans to order 9 A330's to replace its 767's.

May 2004: In November, Los Angeles - Christchurch (747-400, 3/week nonstop).

767-219ER (23328) returned to (GEF).

June 2004: Code share with Star Alliance (SAL) co-member, Asiana (AAR), Seoul - Auckland and on selected transTasman services to Sydney, and ANZ domestic services to Wellington and Christchurch.

Star Alliance (SAL): Air Canada (ACN); Air New Zealand (ANZ); All Nippon Airways (ANA); Asiana (AAR); Austrian (AUL); Blue 1 (applicant); bmi (BMA); (LOT) Polish Airlines; Lufthansa (DLH); Scandinavian Airlines (SAS); Singapore Airlines (SIA); South African Airways (SAA) (applicant); Spanair (SPP); (TAP) Air Portugal (applicant); Thai Airways (TII); United Airlines (UAL); US Airways (USA); & Varig (VAR).

In a move to "redefine long-haul travel" unveiled plans to redesign the interiors and cabins of its long-haul airplanes beginning with a NZ$160 Million/$102.4 Million overhaul of its 747-400's.

8 orders (2005-09) 777-200ER's, including 4 (ILF) leased and 2 orders 7E7-8 (RR Trent 1000) (2nd customer order after (ANA) with options for 42 airplanes (including 9 777-200ER's; 17 777-300ER's; & 16 7E7's).

August 2004: Selected Rockwell Collins to supply eTES audio & video on demand (AVOD) in-flight entertainment (IFE) equipment on 8 new 777-200ER's & retrofit 7 747-400's with eTAS (AVOD).

In November, Wellington - Nadi (A320, 146-PAX, Sats). In December, Christchurch - Raratonga (Cook Islands) (A320, 146 PAX, weekly).

Fiscal Year (FY) 2003 = +NZ$166.2 Million/+$108.1 Million (+NZ$165.7 Million): 10.7 Million passengers (PAX) (+10.4%); +15% fuel costs, appreciating NZ$.

September 2004: The New Zealand High Court rejected the appeal by Air New Zealand (ANZ) and Qantas Airways (QAN) regarding their proposed alliance involving (QAN) taking 22.5% of (ANZ), and both entering into a strategic partnership enabling them to operate together on services across the Tasman, within their domestic markets and on international flights out of New Zealand.

Ralph Norris, CEO, in expressing disappointment at this decision, stated "The New Zealand High Court had not allowed these airlines to take this opportunity to introduce some rationality into a market that in recent years had been anything but rational. While (ANZ) is in a much stronger position, both financially and competitively than when the alliance discussions began, compelling reasons for an alliance still remain. (ANZ) will review this rejection decision before considering other possible options with (QAN), which may include other forms of an alliance and opportunities that do not conflict with the Commerce Act. Despite the failure of the appeal, (ANZ) has established a robust platform to enable (the 82% government-owned) (ANZ) to continue growing in the short to medium term. While we are cautiously confident that initiatives in train over this period will provide for the long term, given the inherent volatility and intense competition in this industry, this will be a considerable challenge."

Selects Rockwell Collins' newest moving map and inflight information product, Airshow 4200, for installation (mid 2005) on 7 existing 747's (eTES (IFE) system) and 8 new 777's.

A320-232 (2257, ZK-OJH) delivery.

October 2004: Singapore Airlines (SIA) has given up its ambitions to forge a lasting relationship with Star Alliance (SAL) partner Air New Zealand (ANZ) and will sell its remaining 6.5% in (ANZ) for NZ$61.7 Million/$41.3 Million. The New Zealand government now has majority shareholding of (ANZ) with 72%. (SIA) sold its 6.3% shareholding in (ANZ) for $41.3 Million, representing an investment loss of some -$336 Million over 4 years. (SIA)'s majority owner, government investment agency Temasek Holdings, picked up a 3% stake in Qantas Airways (QAN).

Plans to reduce its maintenance staff by -100 (MT) OR ABOUT -5%.

A320-232 (2297, ZK-OJI), delivery.

November 2004: Christchurch - Los Angeles (3/week nonstop).

December 2004: Code share with United Airlines (UAL), Hong Kong to Ho Chi Minh City.

January 2005: Last 6 months = +NZ$102 Million/+$73.6 Million (-2.9%) (+NZ$105 Million).

March 2005: Will install Boeing's Electronic Flight Bag (EFB) on its 777's and 787's.

April 2005: (ANZ) Engineering Services has 3-year maintenance contract with Virgin Blue (VOZ) to perform heavy maintenance support for 48 737NG's.

A320-232 (2403, ZK-OJJ), delivery.

May 2005: Officially opened its new pilot training facility, which houses a 777 simulator, classrooms and computerized training equipment. The design of the complex allows for additional simulator halls in the future, one of which is already under construction to house Air Nelson's DHC-8-Q300 simulator. Air New Zealand (ANZ) currently operates four flight simulators within a neary facility that are used for pilot training on 737-300's/-400's/-500's, 767-200's, 747-400's, & A320's.

June 2005: Ralph Norris, Managing Director & CEO resigned to become Managing Director & CEO of Commonwealth Bank of Australia.

Airline flight crews (FC) and officials of United Airlines (UAL), Air New Zealand (ANZ) & Qantas Airways (QAN) participated in a live test of e-passports that contain computer chips with biographic information at Los Angeles International Airport (LAX) and Sydney Airport in Australia. They presented their new e-passports when arriving in the USA through (LAX) and arriving at Sydney. The e-passports contain the holder's biographic information and a biometric identifier, in this case a digital photograph, embedded in a contactless chip. The USA Department of Homeland Security and Department of State are working on the test in cooperation with the governments of Australia and New Zealand.

July 2005: Codeshare with United Airlines (UAL), Noumea - Auckland - San Francisco - Paris (weekly).

A320-232 (2500, ZK-OJL), delivery and leased to Freedom Air (SPT).

August 2005: 10,394 employees (+2.3%).

Air New Zealand and Qantas (QAN) eventually will forge an equity tie-up, according to outgoing (ANZ) Managing Di9rector & CEO, Ralph Norris. Norris said there "is a good chance that the deal will go through. It makes common sense." Last year the Australian Competition Tribunal, which was able to consider new evidence, overturned the Australian Competition and Consumer Commission's rejection of (QAN)'s proposed purchase of a 25% stake in (ANZ). The NZ High Court, which was not permitted to consider new evidence, upheld the NZ Consumer Commission's rejection of the deal. The new evidence, of course, is the dramatic increase in competition on transTasman routes brought about by new entrants such as Emirates Airlines (EAD) and Pacific Blue (PBI). Norris has been lauded around the world for his transformation of (ANZ) from an airline of "last resort" to international trendsetter in just three years. The results have been extraordinary, with staff days lost through injury and illness down -58% and customer complaints down -63%. (ANZ) just rolled out its first 747-400 reconfigured with its new international long-haul product offering and Norris said it has been overwhelmed by the response to the new premium economy, which has a 40-inch seat pitch and wider seats than in regular economy (Y). "The demand for the new premium economy has far outstripped our forecasts and we are looking at increasing the size of the premium class cabin later this year," he said. Importantly, he said (ANZ) has seen no erosion of business (C)/first class (F) traffic into the premium economy (PY) cabin, noting that economy (Y) passengers are upgrading instead. (ANZ) will have a second 747 refitted this month and further airplanes coming online at the rate of one per month. Next month it takes delivery of its first 777-200ER.

(ANZ) earned NZ$180 million/$125.6 million in its fiscal year (FY) ended June 30, up 8% over income of NZ$166.2 million in (FY) 2004, and Chairman, John Palmer flagged that (ANZ) is carrying on "a comprehensive review" of its engineering business, some parts of which are "financially underperforming." Profit before unusuals and tax was NZ$235 million, down 3% from NZ$243 million last year.

(ANZ) also announced that CFO, Rob McDonald will act as interim CEO upon the departure of Ralph Norris. McDonald is not seeking a full-time role as CEO.

(ANZ), which announced a +8% improvement in net earnings to NZ$180 million/$125.6 million for its June 30 fiscal year (FY)2004, is reconstructing its service strategy for the Tasman in a bid to become more cost-competitive as a sharply rising fuel bill and falling yields threaten to reduce profit by -40% for 2005 - 2006. CEO, Ralph Norris said (ANZ) is targeting savings of -10% on Australia - New Zealand operations in an attempt to achieve a "reasonable return" in a market that is subject to heavy pricing competition and excess capacity, due in part to the presence of fifth freedom operators such as Emirates Airlines (EAD). (ANZ) is planning to revamp back-room services as part of a new strategy that will see short-haul international operations aligned with the operating model developed by low-cost subsidiary Freedom Air (SPT). (ANZ) hopes to achieve cost reductions of up to -NZ$100 million in the current fiscal year compared with -NZ$90 million last year. According to Norris, (ANZ) is still negotiating with Qantas (QAN) on a possible code sharing deal across the Tasman. While (ANZ) is 60% hedged at $53 a barrel for 2006, jet fuel costs could rise to NZ$300 million. Norris leaves (ANZ) this week to become chief executive of the Commonwealth Bank in Australia. CFO, Rob McDonald is filling in on an interim basis until a permanent successor is named.

September 2005: The Star Alliance (SAL) chose UK-based Zero Octa as the preferred vendor for revenue recovery and protection services. Ten member carriers - - Air Canada (ACN), Air New Zealand (ANZ), Asiana Airlines (AAR), bmi (BMA), (LOT) Polish Airlines, Singapore Airlines (SIA), Spanair (SPP), United Airlines (UAL), US Airways (USA) and Varig (VAR) - - will be using Zero Octa.

(ANZ) said it is considering launching flights to China.

737-3K2 (27635, ZK-SJE), returned from Freedom Air (SPT). A320-232 (2533, ZK-OJM), delivery and leased to (SPT).

October 2005: Air New Zealand (ANZ) will inaugurate service from Auckland to the island of Niue on November 4th and will operate a weekly service on Fridays using a 737-300. (ANZ) has applied to the Transport Ministry to begin service from Auckland to Shanghai. Once it receives approval (ANZ) will apply to the Chinese authorities for landing slots at Pudong Airport. (ANZ) wants to offer an initial 3 flights a week using its new 777-200ER. (ANZ) expects regulatory approvals to take about six months. Service should begin toward the end of 2006. (ANZ) will launch nonstop service between Auckland and Adelaide next March 26, operating three times per week using A320s. (ANZ) noted it is the first carrier to establish services at the new $180 million Adelaide airport terminal.

India and New Zealand announced a bilateral air services agreement to replace the countries' 1997 accord. Designated airlines will operate up to seven flights per week with full third, fourth and fifth freedom rights at points in Australia and Singapore. Code sharing will be introduced but there will be no direct flights.

(ANZ) named Group General Manager Airlines, Rob Fyfe as CEO, succeeding Ralph Norris, who left the company in August to become head of the Commonwealth Bank of Australia. Fyfe joined (ANZ) in early 2003 as CIO about a year after Norris was appointed CEO. He was promoted to Group General Manager later that year. Like his predecessor, Fyfe has several years of experience in the banking industry. He also worked briefly in the telecom industry and served in the Royal New Zealand Air Force between 1979 and 1987.

(ANZ) Chairman, John Palmer said Fyfe's appointment followed a global search. "It is a great testament to (ANZ)'s leadership development and succession planning that [he] has gained the position against international benchmarks," Palmer said in a statement.

Fyfe noted that (ANZ) is operating in a particularly challenging environment but said he believes it "has the resilience, the vision and the people to deal with these challenges and to become an enduring, internationally successful airline."

(ANZ), citing an inability to attract sufficient third-party work and a lack of internal scale, is proposing to outsource heavy maintenance and engine overhauls for its long-haul fleet of 747s and 767s as well as its new 777s that begin arriving at the end of October. The work currently is done by Air New Zealand Engineering Services (ANZES). Under the proposal, some -600 jobs would be eliminated out of an (ANZES) staff of 2,100, with work transferred to "a specialist large scale maintenance center in Asia or Europe." (ANZ) estimated it will save -NZ$100 million over five years. "Maintenance, repair and overhaul (MRO) for long-haul airplanes is now dominated by large scale international maintenance providers, who through their size can achieve more competitive cost structures. Add to this their proximity to key customers and, for some, the benefits of operating in low-cost Asian economies, and our current small scale, remote operation simply cannot compete," (ANZ) Group General Manager Ventures, Craig Sinclair explained in a statement. A final decision on the proposal will be announced December 19 after consultation with unions and staff. The company's other (MRO) activities are not affected; these include the narrowbody maintenance business in Christchurch, the Christchurch Engine Center (a joint venture with Pratt & Whitney), the military and marine industrial engine capability in Auckland, Safe Air in Blenheim, and Tasman Aviation Enterprises.

Christchurch Airport plans to spend NZ$200 million on a new domestic terminal and integrated international terminal facilities. Airport chairman Syd Bradley said it would be the largest capital investment seen at the airport in more than 20 years. The development is expected to begin in early 2006, and be completed by 2009. The project includes a new car park building, a new combined domestic and international check-in hall, new domestic terminal, new international/domestic "swing" gates, new control tower, modern efficient baggage handling systems, and a large combined retail precinct for international and domestic travelers.

(ANZ) became the first airline to seek certification for its A320s to carry out approach procedures using required navigation performance (RNP) standards. (ANZ) is working with Airbus and Seattle-based Naverus to gain a special (CAA) approval to operate its A320s using (RNP) rather than visual approaches below existing (VOR)/(DME) minima down to 270 ft (AGL) at Queenstown. At present, airplanes inbound for Queenstown cannot descend below 3,000 ft/900 m unless visual conditions prevail.

(ANZ) ordered +two additional 787-8s for delivery in 2010 and 2011, doubling its original order. The airplanes are part of a 777/787 order placed in July 2004 for 10 firm buys and 42 price rights. Analysts expect (ANZ) also will order more 777s beyond its commitment for eight 777-200ERs. (ANZ) took delivery of its first 777-200ER, on lease from ILFC (ILF) and powered by Rolls-Royce (RRC) (Trent 800)s. A second 777, to be owned outright is expected to be delivered on November 8. In total, (ANZ) will purchase four 777s and lease an additional four.

Separately, (ANZ) issued a statement refuting claims by (EPMU), which represents its engineering staff, that the 777's arrival would mean immediate (MRO) outsourcing. "We have specifically designed the maintenance plan for the 777 in a way that will result in the scheduled maintenance for the airplanes being done here at (ANZ) for at least the next eight years," said (ANZES) General Manager, Chris Nassenstein. After that time, the planes would be sent offshore for their first heavy maintenance checks.

777-219ER (29404, ZK-OKA), (ILF) leased.

November 2005: Air New Zealand (ANZ) will suspend direct service between Auckland and Taipei after March 24. (ANZ) said the number of passengers has declined by approximately one-third.

(ANZ)'s first 777-200ER delivery marks the beginning of a significant ramp-up in capacity for the airline. (ANZ)'s long-haul fleet currently consists of 5,251 available seats across 17 airplanes, but by early 2007 the fleet will consist of 6,826 available seats across 21 airplanes. "We have some catching up to do," said new CEO, Rob Fyfe. "During the 1990s we only grew at +1% a year while the industry grew at +5% a year. We need to reestablish ourselves in key markets - - and some new ones." In all, (ANZ) holds 18 orders and options for 777s and 16 orders and options for 787s with the flexibility to interchange some options. The 787-8 has been ordered but it is likely that (ANZ) will swap these for the 787-9(HGW) that is being offered to Qantas (QAN), say analysts. The ramp-up in capacity has been accompanied by a overhaul of the airline's inflight product with addition of a new premium economy (PY) class.

737-33R (28868, ZK-SJB), returned from Freedom Air (SPT). 777-219ER (34376, ZK-OKB), delivery. A320-232 (2594, ZK-OJN), delivery.

December 2005: Air New Zealand (ANZ) increased its Auckland - San Francisco service from three flights per week to six. By mid-December the route will be flown entirely aboard 777s.

(ANZ) expects to make a decision on whether to outsource its wide body and engine Maintenance Repair & Overhaul (MRO) activities on December 19, CEO Rob Fyfe said. Fyfe said (ANZ)'s Engineering union presented a counterproposal that is being studied by management. (ANZ) estimates it would save -NZ$25 million per year by sending the work outside at current labor rates. Some 620 jobs out of an engineering staff of 2,000 would be eliminated should the work leave (ANZ).

Later, (ANZ) said it will proceed with plans to outsource heavy maintenance of wide body engines but has deferred until February a decision on the future of its wide body airframe (MRO) activity amid signs it may be able to reach accommodation with its Engineering union to keep the work in-house. Sending the engine work offshore next year will result in elimination of around -110 jobs. Outsiders already perform engine (MRO) on (ANZ)'s narrow body jets and turboprops.

According to CEO, Rob Fyfe, neither (ANZ) Engineering Services (ANZES) nor unions representing staff were "able to deliver a viable case" for retaining the wide body engine business. "The analysis has painted an extremely bleak picture. Volumes in this business are low and falling. There is no sign of sustainable third-party work due to considerable excess international maintenance capacity and no joint venture (JV) partners could be identified," he said in a statement. (ANZ) expects to save -$53 million over five years through outsourcing.

A further -507 jobs may be eliminated if (ANZ) decides to outsource heavy airframe maintenance of its wide body fleet, but Fyfe cited progress with unions after five days of talks. "The unions accepted that significant change is necessary if wide body airframe maintenance is to be retained in-house," he said.

(ANZ) estimated it needs -$48 million in savings over five years. "If the unions and their members are able to commit to extensive across-the-board labor reform in both (ANZES) Auckland and Christchurch operations, there may be an opportunity to retain some wide body capacity in-house," the company said.

Meanwhile, (ANZ) continues to talk with Oneworld (ONW) alliance member Qantas (QAN) about collaborating on transTasman routes, where Fyfe estimated current overcapacity at +30%, or the equivalent of "11 - 12 A320s flying empty every day." An agreement between the two carriers would be aimed at "aligning capacity" in order to reduce "wingtip-to-wingtip flying" but would stop well short of the full equity and marketing alliance that was rejected by regulators a few years ago. Fyfe is hopeful of reaching a framework agreement with (QAN) sometime in the next couple of months, after which the deal will be presented to Australia and New Zealand competition authorities. More than >10 airlines operate services between the countries, he noted. He also revealed that (ANZ) has conversations underway with Star partners and other carriers about the feasibility of creating a small pool of shared airplanes to address seasonal variations in demand. Membership in the Star alliance (SAL) contributes NZ$400 million in annual revenue, he said.

January 2006: Air New Zealand (ANZ) will suspend its twice-weekly nonstop Christchurch - Los Angeles service during the off season from April 3 to October 28.

(ANZ), which had been prepared to outsource its wide body, heavy airframe, maintenance, repair and overhaul (MRO) activities, said it accepted a counterproposal from union negotiators "that could see [the work] remain in-house through a combination of redundancies and comprehensive labor reform." (ANZ) had set a target of achieving -$32 million in savings from wide body airframe (MRO) over five years. It previously made the decision to outsource wide body engine (MRO) after it was unable to reach agreement with its unions on savings of -$34 million over the same timeframe. According to (ANZ), the unions will vote on the proposal February 9 - 10 with the outcome expected February 13. "A subtlety of the vote is that if the Christchurch workforce, which services the narrow body fleet, vetoes the proposal, it cannot go ahead," (ANZ) said in a statement.

777-219ER (34377, ZK-OKC), delivery.

February 2006: Air New Zealand (ANZ) will go ahead and outsource the heavy maintenance of its long-haul fleet after all, following the failure of unions to secure adequate support for a compromise proposal that would have kept the operation in-house. (ANZ) had accepted the union's proposal late last month.

(ANZ) CEO, Rob Fyfe said he was "extremely disappointed" by the decision that will result in the loss of -507 Maintenance Technician (MT) jobs. Engineering had balloted members on an alternative plan involving the loss of some -300 jobs, which would have delivered almost -NZ$48 million/$32.1 million in savings over five years. Three of the four ballots supported the proposal. (ANZ) is expected to contract work on its 777s and 747s to a European or Asian jet airplane Maintenance Repair & Overhaul (MRO), taking advantage of the considerably cheaper rates. It earlier decided to outsource its engine maintenance, leading to the loss of -110 positions.

(ANZ)'s net earnings for the six-month period ended December 31 plunged -55% to +NZ$46 million/+$30.3 million, prompting the carrier to say that "streamlining and simplifying the business would now dominate" CEO, Rob Fyfe's agenda. "(ANZ) will become a nimble and fast-moving airline, able to rapidly adapt to change more quickly than its competitors. I am determined to implement the necessary measures to ensure this happens," Fyfe said. Among those measures, in addition to the -110 (MRO) redundancies announced in December and the potential outsourcing of its airplane cleaning, (ANZ) has identified -470 additional job cuts through a "significant reorganization of corporate functions across the company." Fyfe is revamping his 10-member senior executive team as part of the restructuring.

Six-month operating revenue increased +7.7% to NZ$1.9 billion. (ANZ) did say that labor costs rose by +NZ$37 million and that a +36% jump in fuel prices combined with a -19.3% decline in fuel hedge gains resulted in a +NZ$174 million increase in fuel costs. In addition, it incurred NZ$35 million in fleet renewal costs during the half-year. (ANZ) said it had a negative currency impact of NZ$5 million and NZ$9 million worth of unusual items. "It is quite clear that (ANZ) is facing unprecedented fuel costs, which have unduly affected the result for this period," Chairman, John Palmer said.

During the semester, passenger traffic grew +4.2% to 13 billion (RPK)s in line with a capacity increase of +4.2% to 17.1 billion (ASK)s, leaving load factor stable at 76.1% LF. Yield climbed +3.8% to NZ11.7 cents.

Fyfe said Fiscal Year (FY) 2006 and part of (FY) 2007 will "serve as transition periods" and that (ANZ) is on track to realize -NZ$100 million in savings this year and an additional -NZ$115 million in (FY) 2007. "Substantial" fuel hedge cover added to his optimism. "We have clear visibility of the changes we need to make to ensure (ANZ) remains competitive," he said.

(ANZ) will wind up keeping approximately 300 wide body (MRO) and Engineering (MT) employees after the recent last-gasp reversal by the Aviation & Marine Engineers Association (AMEA) members in Christchurch, who in a vote earlier, scuttled a compromise aimed at preventing offshore outsourcing. Union members, after facing considerable criticism, according to local media reports, reversed field and approved the proposal with 71% of the vote. Approximately -200 jobs still will be lost, but the (MRO) work will remain in New Zealand and about 300 positions will remain. Other (AMEA) members and members of the Engineering, Printing & Manufacturing Union in Auckland already had approved the compromise.

(ANZ) will continue to operate additional flights from Auckland to Dunedin 3x a week on Wednesdays/Thursdays/Fridays with 737s. (ANZ) tried this evening service from November 9th to December 16th and then resumed it on February 8th with intention to run it through April, however, thanks to bookings exceeding expectations (ANZ) will extend this service beyond April.

(ANZ) is poised to launch an aggressive growth phase as it nears completion of the makeover of its international product. According to CEO, Rob Fyfe, (ANZ)'s eight 747-400s will be re-configured by June, when (ANZ) will ramp up promotion of its new interior, which will offer 34-inch seat pitch in economy (Y) and 39-inch pitch in Premium Economy (PY), along with the industry's longest (6 ft, 7.5 inch) flat bed in Business Premier (BP). A major plank of the growth strategy is the 777-200ER. (ANZ) has three in service with a further five to be delivered this year. They are replacing 767s, operating new services to destinations such as Shanghai and boosting San Francisco (SFO) frequency to daily. Fyfe said that (ANZ) will launch a second daily London service through either the USA (likely through (SFO) or Asia. Australian traffic to the USA is a significant target. Concerning the fleet's future, he said (ANZ) now has an excellent platform for growth and expects to order more 777-200ERs rather than the 777-200LR or 777-300ER. "The 777-300ER or the 747-8 are 747-400 replacements for the 2012 timeframe and we wouldn't rule out leasing additional 747-400 capacity in the interim," he said. (ANZ) has returned four 767-300ERs off lease, leaving five for mainly Pacific Island services. (ANZ) is mulling its 787 options and will take delivery of its first 787-9 in 2010. It is considering leasing 787-8s, possibly in 2009. On short-haul, Fyfe said (ANZ) has no immediate plans to exercise its 20 A320 options, preferring to retain its fleet of 737-300s on domestic routes. It has 15 A320s in service, used mainly on transTasman services.

777-219ER (29401, ZK-OKD), (ILF) leased.

March 2006: Air New Zealand (ANZ) launched a three-times-weekly A320 service to Adelaide. The "born again" New Zealand airline, in a swipe at Qantas (QAN), is claiming Adelaide residents will have one of the fastest connection times to Los Angeles (LAX) and San Francisco (SFO). On the (SFO) service from Auckland, (ANZ) is using its new 777s, while the (LAX) service is operated by 747s that have been upgraded with (ANZ)'s new interior, featuring lie-flat seat-beds and premium economy (PY) products. This week, Qantas (QAN) follows (ANZ) by returning to San Francisco.

737-33R (28873), returned to GECAS (GEF), leased to Estonian Airlines (ENA).

April 2006: Air New Zealand (ANZ) will double frequency on its direct service from Auckland to London Heathrow from October 28th. Besides the current daily 747-400 operating via Los Angeles, (ANZ) will add a daily 747-400 operating via Hong Kong. (ANZ) will become the only round-the-world airline with its new service.

The on-again-off-again relationship between (ANZ) and Qantas (QAN) is back on, with the carriers announcing a comprehensive code share agreement for their routes across the Tasman Sea. Both airlines will file shortly seeking authorization from the New Zealand Minister of Transport and the Australian Competition and Consumer Commission. Regulatory approval is expected to take approximately six months. The agreement replaces the more ambitious equity tie-up that ran foul of competition regulators in both countries in 2003. Since then, Emirates Airlines (EAD) has entered the market, along with Low-Cost Carrier (LCC) Pacific Blue (PBI) and (QAN) (LCC) subsidiary Jetstar (IMU). Both Jetstar (IMU) and (ANZ) low-fare offshoot, Freedom Air (SPT) are taking a larger slice of the market, leaving the premium parent carriers seeking ways to consolidate. "This commercial agreement enables us to maintain network presence while realigning some of the current surplus capacity on the Tasman," (QAN) CEO, Geoff Dixon said. "We plan to develop a combined schedule that allows us both to better utilize airplanes and save costs." (ANZ) currently operates 134 transtasman flights per week while (QAN) has 84. There are eight airlines vying for the 5.4 million passengers flying across the Tasman and market load factor declined from 75% LF to 70% LF between 2003 and 2005. At the same time, capacity grew +39% (ASK), but passenger growth lagged at -31%. Under terms of the code share, (QAN) will cease to be a holder of Redeemable Convertible Notes in (ANZ). (QAN) owns NZ$98 million/$59.7 million of the notes, accounting for 4.2% of (ANZ)'s share register if converted to ordinary shares. The holding was approved by the New Zealand government as the first step in the equity alliance proposed in 2003. (ANZ) will convert the note to debt and repay (QAN) over four years as part of the negotiated transaction.

(ANZ) will raise fares on all domestic flights and outbound international flights by +10% on May 1. (ANZ) said rising fuel costs necessitated the change. "Fuel is now our number one cost," said CFO, Rob McDonald. "We regret having to increase fares but the numbers are stark." (ANZ)'s annual fuel bill has more than doubled since 2004, jumping from NZ$480 million/$303.3 million to NZ$1 billion.

(ANZ) also announced a NZ$42 million upgrade to its domestic terminal facilities at Auckland International Airport. The project's main purpose will be integrating two domestic terminals into one expanded facility. It will include a new retail area.

(ANZ) named General Manager, Eastern Region, Peter Elmsly as Regional General Manager, Greater China, effective May 1.

The Star Alliance (SAL) is working on collective specifications for the 787, (ANZ) CEO, Rob Fyfe said. The (SAL) alliance has a working group including member airlines Lufthansa (DLH), All Nippon Airways (ANA), Singapore Airlines (SIA), (ANZ), Air Canada (ACN) and (LOT) Polish Airlines negotiating with Boeing (TBC) on a wide spectrum of specifications ranging from cockpit configuration through galley configuration and seat pitch. Individual carriers would buy the airplanes, "but a far-reaching commonality in the specifications facilitates the seasonal airplane swapping between members," Fyfe noted, adding there is also a cost benefit. "The more you have commonality in your requirements, the more that Boeing (TBC) will look to feed those issues into the base design, rather than having to do them as add-on incremental." Economies of scale are an additional advantage.

767-319ER (24876), returned to (ILF), leased to (LOT) Polish Airlines.

May 2006: Air New Zealand (ANZ) passengers will be allowed to compose e-mail messages and use other functions on cellphones and portable electronic devices in-flight, but will not be allowed to send or receive messages or calls under the terms of an electronic device exemption granted by the New Zealand Civil Aviation Authority.

New Zealand and India reached a new air services agreement allowing daily flights between Mumbai and Auckland with code sharing onward to other cities in each country. Services can be nonstop or via Australia or Singapore.

(ANZ) contracted UK-based CTC Aviation to train 140 new cabin crew (CA) to be based at London Heathrow (LHR) and support daily 747-400 Auckland - Hong Kong - (LHR) flights scheduled to launch October 28.

(ANZ) named Cam Wallace as General Manager New Zealand & Pacific Island Sales, replacing Roger Poulton who will become General Manager, Americas based in Los Angeles.

(ANZ) converts its 787 Dreamliner orders to 4 787-9s, to take the first delivery of that model in December 2010. The list price of the 787-9 is $183 million. "The range and seat capacity of the 787-9 is even greater than that of the 787-8 model and this will provide(ANZ) with new capabilities for our long-haul international operations," CEO, Rob Fyfe said. The 787 Dreamliner will feature dual flight data recorders (FDR) and cockpit voice recorders (CVR). Speaking to media on the 787 global tour, Mike Sinnett, Boeing (TBC) Chief Engineer for 787 systems, said there will be units combining the (FDR) and (CVR), located both under the cockpit and in the tail.

777-219ER (32712, ZK-OKE), (ILF) leased.

June 2006: Air New Zealand (ANZ) will inaugurate nonstop service from Auckland to Shanghai on November 6th and will operate 3 flights a week using a 777-200ER, departing Auckland on Mondays, Thursdays, & Saturdays, and Shanghai on Tuesdays, Fridays, & Sundays. (ANZ) will launch services to Vanuatu on August 5. It will be (ANZ)'s ninth Pacific island destination, and will be flown under code share with Air Vanuatu (VAN). Initially, (ANZ) will place its code on (VAN)'s thrice-weekly, Auckland - Port Vila flights, but from late October, (ANZ) will operate a weekly A320 service and (VAN) will offer twice-weekly 737 services.

In what All Nippon Airways (ANA) President & CEO, Mineo Yamamoto described as a "great day for (ANA) and the Star Alliance (SAL), and the dawn of a new age" for air travel in Japan, 10 of the 11 Star Alliance (SAL) airlines serving Tokyo Narita begin operating from co-located facilities in the airport's Terminal 1 South Wing. Star (SAL) alliance members that moved overnight into the newly rebuilt terminal are (ANA), Air Canada (ACN), Asiana Airlines (AAR), Austrian Airlines (AUL), Lufthansa (DLH), (SAS) Scandinavian Airlines, Swiss International Air Lines (CSR), Singapore Airlines (SIA), Thai Airways (TII), and United Airlines (UAL). (ANZ), which has a code sharing relationship with Japan Airlines (JAL), remains in Terminal 2.

Bringing the carriers under one roof will result in international-to-international connecting times being reduced more than -50% from 110 minutes to 45 minutes and create "huge opportunities" to develop domestic connections with (ANA), according to Star (SAL) alliance CEO, Jaan Albrecht. In total, the 10 airlines offer more than >794 weekly flights to 30 destinations in 15 countries from Narita.

Among the many firsts in the spacious and attractive South Wing, are common "zone check-in" areas for all carriers, save (SIA), with check-in areas organized by class of travel across the airlines. The hall features a record 126 common-use self-service check-in kiosks and common-use check-in desks. (ARINC) is the technology vendor for both.

Travelers on (ANA), United (UAL), Air Canada (ACN) and Austrian (AUL) can use the kiosks, which are equipped with passport readers. By year end, the Star (SAL) alliance expects passengers on any of the 10 member carriers to be able to check in via the kiosks. The new terminal also offers curbside check-in, a first for Japan, and the country's first baggage reconnecting facility for passengers connecting from an international to a domestic flight.

Additional and upgraded premium lounges are part of the package, as is a new pier with eight attached airbridges. (ANA) has four lounges with shower facilities, which it claims is a first for a Japanese carrier. Its domestic arrivals lounge also is equipped with showers.

This is the third and largest "Move Under One Roof" exercise for the Star (SAL) alliance. Last year, it brought carriers at Paris Charles de Gaulle T1 together and Star (SAL) members at Centrair near Nagoya also are co-located.

(ANZ) named Scott Carr, formerly Head of Network Management, to the post of General Manager, Europe based in London.

(ANZ) said it will replace 15 standard economy seats (Y) with eight premium economy seats (PY) in the main cabin of its eight 747s by the end of October. It also is near completion of the first stage of its two-stage cabin upgrade on its five 767s. By July, it will finish replacing carpets, seat covers and curtains. Later in the year it will refurbish the galleys and lavatories and add more In-Flight Entertainment (IFE) screens. (ANZ) leases two additional 767s and will not upgrade those airplanes, which are scheduled to leave the fleet in October 2006 and August 2007.

The European Union (EU) signed a so-called "horizontal" aviation agreement with New Zealand (NZ), allowing European airlines to fly between New Zealand and any (EU) member state. The agreement does not replace the bilateral agreements in place between member states and (NZ) but brings them in line with (EU) law by removing nationality restrictions. Similar agreements have been signed with Chile, Singapore, Ukraine, Georgia and several Balkan countries.

July 2006: Air New Zealand (ANZ) will inaugurate non-stop service from Auckland to Port Vila (Vanuatu) on October 29th and will operate 1 flight a week on Sundays, using an A320.

(ANZ) announced a series of changes to its international route network with an increased focus on profitability. (ANZ) will suspend its daily 777-200ER service to Singapore and will not relaunch its twice-weekly 747 summer flights from Christchurch to Los Angeles. (ANZ) said (O&D) traffic to Singapore accounted for just 5% of passengers on the service, with most flying on to Europe, which can be served just as well through Hong Kong. Its market share is less than <30%. According to CEO, Rob Fyfe, "the moves we are announcing are the beginning of a carefully thought out repositioning process to continue profitably growing (ANZ)." Fyfe assured the market and staff that he is "committed to seeing (ANZ) grow," adding that it "will continue to increase its total long-haul seat capacity by +9% in the 2007 financial year and by +6% in total" for the group.

The Singapore suspension, which takes effect October 2, gives (ANZ) room to pursue new route opportunities, and planning is well underway for new routes likely to include North Asian destinations. It also is launching a thrice-weekly, Auckland - Shanghai Pudong service on November 6, and will commence a second daily, Auckland - London Heathrow (LHR) flight in October via Hong Kong. Further, it selectively will deploy 777s on flights to (LHR) via Los Angeles, currently operated by 747-400s.

777-219ER (34378, ZK-OKF), delivery.

August 2006: Air New Zealand (ANZ) described its full-year result as "solid" in a "challenging environment," with a net profit decline of -48% to +NZ$97 million/+$61.7 million for the year ended June 30 from +NZ$180 million in the prior year. Chairman, John Palmer said, "We clearly acknowledge this is not the result we would have liked to have achieved at the end of the financial year. But given the extraordinarily challenging business environment, (ANZ) is operating in, this is a respectable result."

As with all carriers, (ANZ)'s bottom line has been jolted by fuel costs, in this case a hike of +44% or NZ$275 million. But (ANZ) also incurred costs related to the refurbishment of its 747s, and introduction of the 777-200ER and 777-300. (ANZ) completed a total makeover of its in-flight product and restructured management and maintenance, but CEO, Rob Fyfe warned there is more pain to come.

"There are still more tough strategic workforce and workplace decisions to be taken to ensure (ANZ) meets its potential. We cannot solely hide behind fuel price increases as the excuse for our decrease in profitability," he said.

Revenue was up +5% NZ$3.8 billion with a solid +6% yield improvement to NZ$0.12 per (RPK). Key to that gain has been the makeover of its long-haul product, which won it the Air Transport World (ATW)'s "Phoenix Award" in 2005.

Higher fuel prices led to total expenses, excluding borrowing costs, increasing +7% to NZ$3.7 billion. (ANZ) carried 11.9 million passengers, up +2% on the previous year, while capacity (ASK)s grew +1% to 34.05 billion and passenger traffic (RPK)s remained static at 25.55 billion, resulting in a -1-point decline in load factor to 75% LF.

(ANZ)'s financial position remains strong, with net cash of NZ$1.15 billion and net debt at NZ$203 million. The board elected to repay NZ$245 million of debt, initially scheduled for repayment over the next three years, early in the 2007 financial year.

Looking ahead, (ANZ) said that "challenging times remain," in part because of a "softening" national economy and a weakening currency against the USA dollar, which is good for long-haul revenue, but problematic for leasing, fuel and Maintenance Repair & Overhaul (MRO) costs. "(ANZ) won't escape the impact of high fuel prices, and these will heavily influence the level of (ANZ)'s profitability in the 2007 financial year," it said.

See video on "Visiting New Zealand" - -

See video "Vist Queenstown, S Island Vacation Capital" - -

October 2006: Air New Zealand announced a number of changes to its Pacific network effective April 2nd as follows:
Route : Change :
Auckland - Rarotonga - Papeete - Los Angeles, 3x a week service suspended;
Rarotonga - Los Angeles, Nonstop service to be increased to twice weekly during peak travel periods;
Auckland - Papeete, 4x a week nonstop service with 2 operated by (ANZ) and 2 operated by Air Tahiti Nui (NUI) in code share;
Papeete - Los Angeles, 4x a week nonstop service operated by Air Tahiti Nui (NUI) in code share;
Nadi - Los Angeles, New days of (ANZ) operation are Mondays, Wednesdays & Fridays; Air Pacific (APC) to operate other days in code share.

777-219ER (29403, ZK-OKG), (ILF) leased.

November 2006: The Australian Competition and Consumer Commission (ACCC) issued a draft decision denying authorization of the Tasman Networks Agreement reached seven months ago by Qantas (QAN) and Air New Zealand (ANZ).

The carriers combine for approximately 80% of transTasman traffic and ratifying the agreement "would fundamentally change the competitive process on the transtasman," according to (ACCC) Chairman, Graeme Samuel, who said it would "result in limited public benefits in the form of cost savings to the airlines, as well as marginal improvements in schedule spread, connectivity and frequent-flier options for consumers."

The commission found that Virgin Blue (VOZ) and Emirates Airline (EAD) offer some competition in the region, but would not "replace the competitive dynamic" that would disappear under the accord, resulting in "higher prices and reduced travel options at key times." It is accepting submissions relating to its draft ruling.

Later, (ANZ) and (QAN) withdrew their joint application to code share on routes across the Tasman Sea following the negative draft determination issued by the (ACCC).

The industry in Australia and New Zealand was disappointed by the (ACCC)'s preliminary decision as it appeared to ignore both the "Southwest Effect" and the fact that nine airlines are flying between the two countries. According to the Reserve Bank of New Zealand and the NZ Bureau of Statistics, between 1990 and 2003, airfares between the countries declined -47% while the (CPI) increased +30% and wages rose +33.7%. From 1991 to 1997, (QAN) owned 19% of (ANZ), and fares dropped -26% during that time.

The (ACCC) said the code share would give (QAN) and (ANZ) about 80% of the transTasman market. The carriers had hoped to both eliminate wasteful competition and open new nonstop routes such as Wellington - Canberra, just as (QAN) did domestically after the demise of Ansett Australia (ANS), when it opened routes such as Perth - Canberra and dropped the fare by -25%.

(ANZ) unveiled a reconfigured Pacific network "following a review of route profitability." It will suspend its thrice-weekly, Los Angeles (LAX) - Papeete - Rarotonga service beginning April 2, and reinstate a weekly (LAX) - Rarotonga flight. (ANZ) will code share with Air Tahiti Nui (NUI) on its four-times-weekly, (LAX) - Papeete service and cooperate with (NUI) on a four-times-weekly, Papeete - Auckland service. The (ANZ) - (NUI) code share is subject to government approval.

(ANZ) announced a -11% reduction in transTasman seat capacity beginning in April. Seats to Australia will fall by -15% from Wellington, -28% from Dunedin, -15% from Palmerston North, and -7% from Christchurch, compared to April - October 2006. "Not even the low airfares generated by significant excess capacity and competition have driven enough customer demand from these four centers to maintain the status quo," General Manager, Shorthaul Airline, Norm Thompson said, citing a 63% LF load factor out of Wellington as an example. In addition, (ANZ) will use smaller airplanes on the Auckland - Sydney route. Dunedin - Gold Coast is the only canceled service. TransTasman routes account for 20% of (ANZ) flying.

(ANZ) Engineering Services won a $3 million contract from Thomsonfly (TFY) to install Panasonic eFX AVOD In-Flight Entertainment (IFE) systems and perform heavy maintenance checks on nine 767-300s. Work will continue to May 2007.

December 2006: Air New Zealand (ANZ) is upgrading its fleet with more fuel-efficient airplanes and adding routes to China and Hong Kong, to compete with rivals such as Emirates Airline (EAD), Qantas Airways (QAN), and Singapore Airlines (SIA).

(ANZ) doubled its order for 787-9 Dreamliners to 8/8, as it upgrades its fleet and considers new routes.

January 2007: Air New Zealand (ANZ) played down suggestions that the challenges facing (ANZ) are over, even as receding fuel prices are prompting a share price rally.

In the past five months, (ANZ)'s shares have climbed from NZ$1.20 ($0.82) to just above NZ$2, with some analysts suggesting it will triple its profit over the next four years. But CEO, Rob Fyfe warned (ANZ) is far from where it needs to be. "The improving profit picture is deceiving. We have a long, long way to go, before we will be performing as a normal business," he said.

Fyfe said the airline industry is way behind others, when it comes to (EBIT) as a percentage of revenue. "(ANZ) had an (EBIT) of 4% last year compared to Auckland International Airport Ltd with 60% and [telecom giant] Telstra with 39%. If we were to make the same (EBIT) percent as Auckland Airport, we would need to post a result of NZ$2.5 billion instead of $150 million." He added that (ANZ)'s return on equity is barely 6%; "The money would be better in a bank."

(ANZ)'s restructuring is only 30% complete, Fyfe said. "We have another three years to go, without any major upheavals, before we will have a good business. We have the right product, but the challenge is to now grow the revenue."

(ANZ) will attempt to do so on the domestic front through a fare reduction, lowering fares by -26% on January 24 for flights from February 24. The cheapest one-way fare between Auckland and Wellington will drop from NZ$115 to NZ$89, for example. Fyfe said that he expects the move "to generate more demand for travel on the d (ANZ) domestic network." The price reductions are part of a major push to grow the business now, that many key restructuring elements are in place.

(ANZ) recently completed an upgrade of its eight 400-seat, 747-400s and soon will take delivery of the last of eight 300-seat 777-200ERs. It is mulling an order for the 385-seat 777-300ER. In December, it ordered more 787s, taking its commitment to eight. It has another 36 options for either 777s or 787s.

777-219ER (34379, ZK-OKH), delivery.

February 2007: Air New Zealand (ANZ)'s radical cabin interior makeover was credited for a +61% hike in net profit to +NZ$74 million/+$52.4 million for the six months to December 31, with long-haul yields jumping +12.7%, as passengers upgraded to its Premium Economy (PY), and Premier Business (PC) products.

Operating revenue rose +12% to NZ$2.1 billion, while expenses increased +10.1% to NZ$1.72 billion. As expected, fuel was the biggest item and grew +13% to NZ$584 million. Operating profit was +NZ$109 million versus the 2005 period's +NZ$81 million.

(RPK)s passenger traffic increased only +0.9% to 13.1 billion, as (ASK)s jumped +3.6% to 17.6 billion, sending load factor down -2 points to 74.1% LF. This was due in part to introduction of higher-capacity 777-200ERs, a deliberately low-key approach to promoting (ANZ)'s new product until all 747s are upgraded, plus addition of new services. (ANZ) expects full effects of these changes to flow through in the last half of the fiscal year.

Short-haul passenger revenue increased +11% to NZ$1.1 billion, with yields up +8.9%, while long-haul revenue grew +13% to NZ$695 million with yields ahead +12.7%. Cargo revenue rose +20% to NZ$217 million thanks to the increased capacity offered by the 777s and higher yields.

Chairman, John Palmer said the progress during the semester was pleasing in the face of significant challenges like high fuel prices, a weaker New Zealand dollar and intense competition. "All our key metrics, including yield, passenger numbers, revenue, profitability and share price are up, despite significant external pressures," he told media.

CEO, Rob Fyfe said it was important to consider (ANZ)'s performance within a wider context, commenting, "We are confident in our strategic direction and will continue to drive the changes we need to ensure the airline is world class in everything it does." He also drew attention to the completed four-year cost-saving program, that had target savings of -NZ$245 million once fully implemented, noting that by the end of the initiative, (ANZ) achieved more than >-NZ$326 million in annualized savings.

Qantas (QAN) said the termination of its transTasman agreement with (ANZ) resulted in the convertible notes issued by (ANZ) to (QAN) in 2002 being converted into 44.2 million new ordinary shares. As a result, (QAN) will own approximately 4.2% of (ANZ)'s ordinary shares.

Starting November 2nd, Auckland - Vancouver, using 777-200s.

Shanghai SR Aircraft Technics (SRT), a joint venture between (SRT) and Shanghai Foreign Aviation Service Corp, signed an agreement with (ANZ) to provide technical support and line maintenance on its 777s at Shanghai Pudong.

(ANZ) upgraded its long-haul Pacific Premium Economy (PPE) service to include several features available in business class (C), such as pre-flight drinks, printed menus and amenity kits. (ANZ) added eight seats to its 747 (PPE) class last October. The upgrade also is available on 777s.

Boeing (TBC) announced its 787 deal with (ANZ). (ANZ) finalized its order for four additional 787-9s, which brings its commitment to the type to eight firm, plus 12 price rights. Delivery of the new orders, valued at $700 million at list price, is scheduled for 2011 to 2013.

April 2007: Air New Zealand (ANZ) said it will add a 15th leased 737 this year, a 16th in the first half of 2008, a 15th DHC-8-Q300 this month, and a further five by December, replacing Saab 340As.

(ANZ) will add a fourth and fifth weekly Auckland - Adelaide flight beginning October 29 aboard A320s.

Airways New Zealand, the country's navigation services provider, said it will trial a glide descent approach procedure for (ANZ) and Qantas (QAN) 747s landing at Auckland International beginning the middle of this month. Engines will be set at idle from the top of the descent point in order to "significantly" reduce fuel burn and emissions. Similar trials have been run at Melbourne and Amsterdam, with a third currently operating in San Francisco.

June 2007: Qantas (QAN) sold its 4.2% stake in Air New Zealand (ANZ), which it acquired in early 2002 in association with the proposed Tasman Networks Agreement, that was scuttled by regulators. (QAN) said it acquired the shares at NZ$2.23 each and sold them at NZ$2.70. Following the sale, it said it "remained comfortable with its previous guidance that its 2006/2007 profit before tax, was in line with the average market expectations."

(ANZ) will commence reciprocal code share flights with Air China (BEJ) effective July 1. The agreement will see (BEJ) place its code on (ANZ)'s Shanghai - Auckland and selected transTasman flights, while (ANZ) will code share on (BEJ)'s flights to Australia.

(ANZ) CEO, Rob Fyfe said (ANZ) intends to "open one new long-haul destination every year" and wants to increase its offering of round-the-world services. (ANZ) currently operates Auckland - London Heathrow, via Los Angeles and Hong Kong, and is starting flights to Vancouver this year. "We want to use our existing Auckland - Shanghai service to continue onwards to Europe," Fyfe said, adding that the number of (ANZ) passengers taking advantage of round-the-world services is increasing. (ANZ) is exploring using San Francisco as a gateway to Europe, and is looking for new destinations on the continent "like Manchester or Munich," he said, "because our passengers want to have an airport in Europe with connections to low-cost carriers." (ANZ) has eight 787-9s on order and still holds purchase rights on 12 777-300ERs.

July 2007: A war of words erupted between Air New Zealand (ANZ) and Auckland International Airport (AKL) Ltd (AIAL) over the airport's new pricing policy recently announced. (AIAL) said it will increase landing charges for airlines by +2.5% per year for the next five years from September 1. At issue is the airport's decision to change the valuation methodology. According to CFO, Robert Sinclair, (AIAL) used an "opportunity cost approach to airfield land valuation based on Market Value Alternative Use rather than the previously used Market Value Existing Use approach, which has historically been adopted by airports in New Zealand." That change doubled the value of (AKL) on which the charges are based. (AIAL) credited airlines with NZ$99 million/$76.4 million, which it claimed is more than half the value of the increase.

But that was not enough for (ANZ), which claimed the increase "again exposes the failings of having no effective regulatory regime to protect the interests of travelers from monopoly abuse." (ANZ) CFO, Rob McDonald said it comes on top of a +25% hike "effectively borne by departing international travelers" since October 2005, when carriers assumed responsibility for some aviation security charges. With no reduction in the departure charge, the total price will have increased +40% in less than <five years.

(AIAL) CEO, Don Huse said that the airport operator is "committed to best practice and have taken an independent approach. We believe we have been reasonable." He said the airport has spent money on upgrading the runway with thicker concrete and has faced increased security costs.

McDonald said (AIAL) did not reach an agreement with (ANZ), and that "an aggressive approach to asset valuation and the treatment of revaluations has been used by (AIAL) to create the impression that aeronautical price increases are justified. We are still miles apart." He said the airline is reviewing its options in light of yesterday's decision.

The Board of Airline Representatives of New Zealand (BARNZ) also criticized the new fees, claiming it had demonstrated a that reduction in charges was justified. (BARNZ) Executive Director, Stewart Milne said in a statement that the London-based Transport Research Laboratory identified (AKL) as the second most profitable airport in the world. However, (AIAL) presented its own report from Australia's Frontier Economics, that stated that when taken as a whole, the proposed charges "were reasonable."

Later, Dubai Aerospace Enterprise (DAE) reached an agreement to take a controlling interest in Auckland International Airport Ltd. (DAE)'s stake, which still must be approved by (AIAL) shareholders, is expected to be at least 51% and as high as 60% and is valued at as much as NZ$2.6 billion/$2.07 billion. Under terms of the agreement, other bidders will be allowed to submit rival proposals for a controlling stake that (AIAL)'s board also can consider.

The proposed deal with (DAE) is likely to add to the frosty relationship between (AIAL) and airlines, which are furious about a yearly 2.5% increase in landing fees for the next five years announced earlier this month. (AIAL) said the higher fees are justified because it has doubled the value of the airport's land by using some of the property for other industrial purposes.

At the recent (IATA) (ITA) Anuual General Meeting (AGM) in Vancouver, (IATA) CEO, Giovanni Bisignani called Auckland, Sydney, Hong Kong and Seoul airports "happy monopolies" with profit margins above >40%. In (AIAL)'s case, the profit margin was just under <50% for the year ended June 30, 2006.

(AIAL) shareholders will be asked to vote on the (DAE) proposal at a November meeting and the (AIAL) board is not restricted from considering competing proposals from other parties. Industry watchers expect Australia's Macquarie Airports, which controls or has significant interests in airports in Sydney, Brussels, Copenhagen, Birmingham and Bristol, to field a bid. Macquarie recently reached agreement to sell its 44.7% stake in Aeroporti di Roma to the Gemina investment firm for €1.24 billion/$1.66 billion, nearly triple the €480 million it paid in March 2003. That transaction is subject to regulatory approval.

August 2007: Air New Zealand (ANZ) concluded a year full of highlights by reporting its best result in a decade, a +NZ$214 million/+$154.7 million net profit in the fiscal year ended June 30, that represented a +123% increase over the prior year's +NZ$96 million in earnings. The result was built on a +13% rise in revenue to NZ$4.3 billion, with passenger numbers up +4.9% to 12.5 million and yield ahead +7.5% on short-haul flights and +8.8% on long-haul. Fuel continued to be the biggest cost and grew by +NZ$165 million, while overall expenditure rose +10.2% to NZ$3.43 billion. Operating profit was +NZ$283 million, up +91.2% from +NZ$148 million in the previous fiscal year. (ANZ) flew 26.87 billion (RPK)s passenger traffic during the 12 months, up +5%, against a +3.1% increase in (ASK)s to 35.11 billion, that lifted load factor +1.7 points to 76.7% LF.

The result was even more impressive, set against a reduction in domestic airfares of up to -26% since February, which helped boost domestic travel by +42% to 5.5 million passengers, and the launch of new routes to Shanghai and to London Heathrow, via Hong Kong. (ANZ) also ordered four more 787-9s and four 777-300ERs, and introduced the DHC-8-Q300, its third new airplane type in four years. The ongoing business transformation program delivered a further NZ$128 million in revenue, productivity and cost benefits, with labor cost falling to 20.6% of overall expenses, an improvement of +9 points. "This is the strongest result in the past decade and comes off the back of significant growth in passenger revenue and a continued reduction in unit operating costs," Chairman, John Palmer told media in Auckland. CEO, Rob Fyfe added that "the past year will go down as one of the most pivotal and exciting in (ANZ)'s history. All the hard work of Air New Zealanders over the past few years to shape an airline that the nation can really be proud of is starting to pay off." Looking forward, (ANZ) warned that currency fluctuations and fuel prices continue to have a significant influence on its financial performance. It said it has taken hedge positions on both currency and fuel, and spikes notwithstanding, expects a better result for the 2008 fiscal year.

(ANZ)'s ongoing battle with local airports continued with (ANZ) forced turn to the courts, this time to protest increased landing charges at Wellington. (ANZ) is seeking a Judicial Review of recent charges imposed by Wellington International Airport Ltd and had filed proceedings with the High Court in the capital. Last month, it filed for a Judicial Review of charges imposed by Auckland International Airport Ltd. (ANZ) Counsel, John Blair claimed that the airline's costs will increase by +34% over the next four years. Wellington Airport acting CEO, Mike Basher responded, telling New Zealand's Scoop Business that the airport "is acutely aware of its statutory obligations in setting its landing fees, and it is our view that we have undertaken the process thoroughly, and will strongly defend the claims made by Air New Zealand (ANZ)."

In July, Auckland announced it would increase landing charges by +2.5% per year for the next five years, with the first increase taking effect September 1. It also plans to raise its NZ$25/$18.55 development charge levied on departing passengers by NZ$1 per year for three years from July 1, 2008.

Later, (ANZ) struck back at Auckland International Airport (AKL)'s proposed landing charge hike, by announcing that it intends to move some domestic flights to Whenuapai Airbase in West Auckland. Plans call for a move within five years, but the current occupier, the Royal New Zealand Air Force (RNZ), said it plans to stay at the base for eight. Whenuapai has three runways but only one, at 2,031 m, suitable for commercial flights. It has capacity for 200,000 flights per year and can handle 737/A320s and 767/A330 equipment, but the main runway could be extended to handle 747s, if an expanded role was considered. The base is located closer to central Auckland than (AKL), and is adjacent to major motorways. Various reports indicated it could handle up to 20% of Auckland's domestic airline traffic by 2015, without any international feed.

(ANZ) is set to announce a new lower-cost, higher-value domestic product, when it announces its fiscal-year results. The indication came in a press release issued in response to Virgin Blue (VOZ)'s announcement that it will launch New Zealand domestic services within 12 months. (ANZ) Group General Manager Shorthaul Airline, Norm Thompson said: "Since (ANZ) announced several months ago that it had a significant review of its domestic operations underway, that were expected to yield the next evolution in the travel experience within New Zealand, we have heard murmurings of competitors bringing forward their launch plans." He added that (ANZ) "remain[s] confident that the initiatives we will unveil at our annual result . . . will herald a new era for low-cost, efficient and comfortable domestic air travel."

(ANZ) is continuing to orchestrate the replacement of its 747-400s, placing a firm order for four 777-300ERs plus three options. The deal represents the conversion of price rights that were part of the carrier's 2004 order for up to 52 long-haul airplanes. The four new 777-300ERs, to be powered by (GE90-115BL)s, are worth an estimated $1.1 billion at list prices and will, according to CEO, Rob Fyfe, "help us build on the great success we've had with our 777-200ERs." (ANZ) currently operates eight 777-200ERs, eight 747-400s and five 767-300ERs. (ANZ) has eight 787-9s plus eight options on order. (ANZ) said it plans to operate an all-777 and 787 long-haul fleet by "around" 2012. Fyfe said the airplanes "are much better suited to (ANZ)'s long-term growth strategy of serving new markets point-to-point."

See video - - "New Zealand an Overview" - -

September 2007: Air New Zealand (ANZ) said it will shut down its Freedom Air (SPT) low-cost unit next March 30, replacing many of its services with (ANZ) mainline flights, which the company said have similar fares to Freedom (SPT) flights, but offer better service.
General Manager Short Haul Airlines, Norm Thompson, who soon will move to the newly created post of (ANZ) Deputy CEO, said a review of short-haul Freedom (SPT) services across the Tasman Sea to Australia revealed that passengers' "overwhelming preference was for us to focus on upgrading and enhancing our services." Freedom Air (SPT) has been operating for more than >10 years. "The reality is that the price of airfares has fallen dramatically over the past 10 years and today there is little difference between (SPT) and (ANZ) fares," Thompson said, noting that customers booking (ANZ) flights across the Tasman will get "a more consistent and higher quality of service" than aboard Freedom (SPT) flights. He said the switch means (ANZ) will add nine new city-pairs, including one new Australian destination (Coolangatta) and two New Zealand destinations (Dunedin and Hamilton) to its network. "The switch from (SPT) to (ANZ) will have a number of advantages for many passengers, including the ability for them to earn (ANZ) Airpoints, enjoy seamless booking services and all the other great benefits that arise from (ANZ)'s full-service network," he said. No redundancies are anticipated, as affected staff will be offered jobs within the (ANZ) Group, Thompson added. (SPT) operates A320-200s.

(ANZ) is set to launch a series of measures to reduce its carbon emissions, including using biofuels. CEO, Rob Fyfe told "The Australian" that (ANZ) "has two or three projects underway looking at biofuels," with an announcement scheduled for late September. (ANZ) also is looking at a range of measures such as improved descent profiles, reducing the flaps setting for landings and turning to ground power, as soon as possible after arrival. (ANZ) will acquire more ground power units. Additionally, it is looking at a blade wash program to save -1% on fuel burn, as well as aerodynamic modifications to some airplane types to pick up another +1%.

October 2007: Qantas (QAN) is matching Air New Zealand (ANZ)'s recent product initiatives, turning up the competitive heat in the NZ domestic market. Next month, (QAN) will introduce its successful Australian domestic "Cityflyer" product across the Tasman. Cityflyer provides passengers free beer and wine from 4 pm (noon in Australia), free newspapers, and an enhanced food offering. (QAN) also announced the addition of online check-in, "QuickCheck" self-serve kiosks, and a A$3 million/$2.7 million upgrade to its lounges in Auckland, Christchurch, and Wellington.

Meanwhile, (QAN) is adding a fifth 737 to its New Zealand operation. In August, Pacific Blue (PBI), the international arm of Australia's Virgin Blue (VOZ), said it will launch domestic services in New Zealand on November 15. (PBI) initially will use two 737-800s between Auckland, Wellington and Christchurch. New Zealanders enjoy consistently low fares, often starting from NZ$59/$45 on major trunk flights between Christchurch and Wellington, and (ANZ) has a daily "Grabaseat" product, that sells off spare seats from NZ$6.

(ANZ), Boeing (TBC), and Rolls-Royce (RRC), signed a Memo of Understanding (MOU) to conduct jointly what they claimed will be the first trial of a commercial 747 operated with biofuel. The test flight will take place in late 2008 or early 2009 using an (ANZ) 747-400. The airplane will not carry passengers and only one engine will run on the blended biofuel/kerosene mix. While the flight may use biofuel, sourced from around the globe, (ANZ) CEO, Rob Fyfe told media that the airline is "keen to encourage research into alternative fuels in New Zealand." Boeing (TBC) President - Australia & South Pacific Region, Craig Saddler said in a conference call, that the company is "now exploring second-generation biofuel feed stocks, and processes that have the potential to reduce greenhouse gases throughout their entire lifecycle." It is understood that one possible source for the biofuel is New Zealand's Aquaflow Bionomic Corp, which conducted the first biodiesel tests llast year.

Virgin Atlantic Airways (VAA) plans to conduct a 747 biofuel test flight next year, parent Virgin (VAA) Group Chairman, Richard Branson said. At a recent appearance in Amsterdam and again during a speech in Boston, he said that (VAA) will "early next year . . . fly one of our 747s without passengers with [an alternative fuel] we have developed." No other details were revealed. (VAA) has said in the past, that it is working with Boeing (TBC) and (GE) to develop biofuels. (ANZ), Boeing (TBC) and Rolls-Royce (RRC) signed a Memo of Understanding (MOU) last month to conduct jointly what they claimed will be the first trial of a commercial 747 operated with biofuel, with the test flight taking place in late 2008 or early 2009 using an (ANZ) 747-400. The airplane will not carry passengers, and only one engine will run on the blended biofuel/kerosene mix.

November 2007: Air New Zealand (ANZ) launched thrice-weekly, Auckland - Vancouver service on November 2, aboard a 777-200ER. Originally scheduled to be a seasonal route, the flight will be operated year-round, due to strong customer response, Manager International Airline, Ed Sims said.

December 2007: Air New Zealand (ANZ) plans to offer direct flights to Beijing in July to cater for increased tourist arrivals from the world's most populous country. The twice-weekly service from Auckland will use (ANZ)'s new 777-200 jetliners and will begin July 18, subject to all regulatory approvals, CEO, Rob Fyfe said in a statement to the New Zealand stock exchange. Chinese visitors to the South Pacific nation increased +16 percent in the year ended October 31 and Tourism New Zealand forecasts the country will be the third-biggest market for inbound tourists within five years. (ANZ), which began a service to Shanghai in November last year, expects to operate seven flights a week to China by late 2008. ``China is developing rapidly and there are a growing number of wealthy individuals keen to travel more,'' George Hickton, CEO of Tourism New Zealand, said in a statement. ``These direct flights will help us tap into this key market.'' By launching in July, the new service will also cater for New Zealanders planning to travel for the Beijing Olympics in August, the airline said. (ANZ) runs three services a week to Shanghai and will increase this to five from November 2008, said Ed Sims, Group General Manager, International. ``This is the right mix to enable us to realize our growth ambitions in China,'' he said. Beijing Capital International Airport handles 1,300 flights a day and exposes the airline to more customers from other parts of China and Europe, he said.

(ANZ) is a member of the Star Alliance (SAL). This month, Air China (BEJ), the country's largest international carrier, and Shanghai Airlines (SHA) joined (SAL). The number of Chinese people making trips overseas is likely to more than triple to 100 million a year by 2020, according to (BEJ).

(ANZ) has signed a $NZ45 million/$A39.86 million contract with Virgin Blue (VOZ) to carry out heavy maintenance on 50 737s. The five-year contract renews a contract due to expire at the end of the year, and follows a five-year heavy maintenance contract signed this year for Hawaiian Airlines (HWI) in Auckland. (ANZ) has carried out heavy maintenance checks on (VOZ)'s 737-700 and 737-800NGs at its Christchurch base for the last three years. The (VOZ) contract, provided appropriate scale at the Christchurch base and complemented the maintenance of (ANZ)'s own 737 fleet there, (ANZ) said.

January 2008: Airlines throughout the world are contending with antitrust charges made at the end of 2007 by the European Commission (EC), which has accused at least 11 and as many as 25 carriers of "cartel" activity relating to airfreight transport. In addition to British Airways (BAB), Japan Airlines (JAL), Air France (AFA)/(KLM), (SAS) Group, and Cargolux (CLX) (all of which confirmed receipt of statements of objections from the (EC) before Christmas),(ANA), Air New Zealand (ANZ), Air Canada (ACN), Cathay Pacific Airways (CAT), (LAN) and Singapore Airlines (SIA) have admitted to being charged. Carriers charged late last year, have two months from the receipt of statements of objections to respond in writing to the (EC) and also have the option of requesting a formal hearing. An airline found guilty or admitting to guilt can be fined up to 10% of its annual revenue.

Air New Zealand (ANZ) slashed its standard domestic fares -9% to -27% to stimulate travel and tourism. The changes, effective from February 23, are for lead-in "smart saver" fares on 40 domestic routes. These will be introduced alongside reductions of -20% to -30% in top-end fares on a number of regional routes, popular with business (C) customers and cuts of -15% in top-end fares on main trunk routes. The restructuring comes after a two-year, NZ$350 million/$268.6 million buildup of the regional fleet, that has seen average seat capacity increase +46%. Some popular destinations have seen bigger increases such as Nelson (69%), New Plymouth (60%), and Tauranga (67%). The fare initiative follows the successful daily grab-a-seat program, which since its launch 15 months ago has sold 155,000 domestic seats at prices ranging from NZ$1 to NZ$39.

(ANZ) announced suspension of its thrice-weekly Nadi - Los Angeles (LAX) service effective April 26. It will extend its codeshare agreement with Air Pacific (APC) to cover six weekly Fiji - (LAX) flights, up from the current four.

Air New Zealand (ANZ) will launch twice-weekly, Auckland - Beijing on July 18 with a 777-200ER.

Air New Zealand (ANZ) will launch six-times-weekly, Wellington - Whakatane service on May 19, aboard an Eagle Air Beech 1900D.

IBS Software Services reached agreement with Air New Zealand (ANZ) Cargo to provide the integrated end-to-end, supply chain management tool iCargo.

Air New Zealand (ANZ) received the Air Transport World magazine's "Passenger Service Award" in recognition of both its physical product and the service delivered by (ANZ) staff. Since introducing its new long-haul product, it has seen a dramatic increase in demand for its premium service.

February 2008: Air New Zealand (ANZ) will add a fourth weekly, Auckland - Vancouver frequency in early December. (ANZ) launched the route last November.

Boeing (TBC) is upbeat on its progress with what it terms "second-generation" biofuels and believes regular commercial services could be operating within five years. Addressing an industry environmental conference in Sydney, Head of Environmental Strategy, Bill Glover said that in the past two years he "changed from being a skeptic to an enthusiastic supporter of sustainable biofuels," adding, "It will take time to collect the data and get confidence [in the fuel], but an airplane powered by a biofuel blend, could be flying as early as five years' time. Within 10 years, we can have a significant impact on the market and on the carbon footprint of aviation."

Feasibility studies will begin this month with Virgin Atlantic Airways (VAA) and (GE), while (ANZ) and Rolls-Royce (RRC) come on board later this year. Glover said there has been substantial progress over the past 18 months. He explained that the industry cannot use what he termed "first-generation" biofuels such as ethanol, because of the low energy content, but that newer products do meet specifications. The new fuel must be interchangeable with current jet fuel, he said. It "must act like the fuel already being used and meet all the technical specifications." Glover noted that "second-generation" biofuels were "designed to avoid the problems of first-generation fuels that replaced grain stocks, used large quantities of water or required vast areas of agricultural land." He said the industry could grow the entire feedstock for the current aviation fleet in an area the size of Belgium.

INCDT: (ANZ) said that an attempted hijacking aboard an Eagle Air Jetstream 32 operated by Air National was a "one-off," but "has naturally given us cause to conduct a thorough review of our safety and security systems and processes on regional domestic flights." According to widespread reports, a 33-year-old Somali woman , who was a passenger on the Blenheim - Christchurch flight rushed the cockpit (the flight deck reportedly is separated from the cabin by a curtain) with a knife, threatening to blow up the airplane. She cut the two pilots (FC) before being subdued. The airplane landed safely at Christchurch and the woman was taken into custody. The six other passengers onboard were reported safe, while the pilots (FC) were treated for nonserious injuries. A bomb squad found nothing, but the airport was closed for about 3 hours following the incident.

Airways New Zealand, Airservices Australia, and the USA (FAA) signed a trilateral agreement to accelerate development of air traffic control (ATC) procedures among the three countries, that will reduce aviation's environmental footprint. Dubbed (ASPIRE) - - Asia & South Pacific Initiative to Reduce Emissions - - the accord aims to provide a regional platform for a host of technologies pioneered by the trio.

IBS Software Services has an agreement with (ANZ) to provide its iCargo management tool.

March 2008: Air New Zealand (ANZ), Air Transport World (ATW) magazine's "Passenger Service" Award winner for 2008, posted a +58% increase in net profit to +NZ$115 million/+$93.7 million for the six months ended December 31 on a +9.6% rise in operating revenue to NZ$2.33 billion. While operating costs grew +5% to $2.14 billion, the result was built on a +6.4% gain in passengers to 6.5 million and a +5.3-point lift in load factor to 79.4% LF. Capacity rose +4.4% to 18.46 billion (ASK)s while passenger traffic (RPK)s climbed +11.8% to 14.66 billion. Short-haul yield was up +1.6% to 18.7 cents and long-haul yield increased +1.8% to 9.3 cents. The biggest gains were on long-haul routes, where passenger numbers jumped +16.8% and load factor improved +5.7 points. Operating profit was +NZ$172 million.

Deputy Chairman, Roger France said the results represent a solid operating and financial performance, despite high fuel prices and increased competition. "(ANZ)'s financial position has continued to strengthen, and our highly successful business transformation program over the past five years has created a solid foundation for the continued growth of the airline," he said. France cited high fuel prices, tight labor markets and an exchange rate that is making New Zealand less competitive as an international tourist destination as major issues. "As the twin challenges of higher input costs and increased competition continue to put pressure on the business and across the industry, we are prepared to make the bold decisions necessary to maintain our customer service leadership and maximize long-term profitability," he said. CEO, Rob Fyfe added that while the year ahead will be demanding, (ANZ) is focused firmly on seizing opportunities and continuing to grow the business. "A strong financial position, continued innovation in both our short-haul and long-haul businesses, network flexibility and a relentless focus on delivering world class customer service will ensure that (ANZ) is well placed to strengthen our competitive position over the coming period," he said.

Turkish Airlines (THY) and (ANZ) linked loyalty programs ahead of (THY)'s induction into the Star Alliance (SAL).

(ANZ) is staying true to the philosophy that earned it Air Transport World (ATW) magazine's "2008 Passenger Service Award" and embracing more product upgrades designed to snare premium customers, rather than cost cuts, to combat soaring fuel prices. Speaking in Auckland, CEO, Rob Fyfe reasoned, "In a cross-country race, the best time to pass the guy ahead is on the hill. And we are fighting fit and in great shape and we should look at this time to pass our competitors." The question, according to Fyfe, is, "If there is going to be more capacity in the market and a downturn, how do we make sure passengers fly with us? The last thing we want to be saying is 'how do we take costs out of the business?'." This year (ANZ) is investing more than >NZ$55 million/$44.2 million installing In-Flight Entertainment (IFE) throughout the 767s and A320s, it uses on short-/medium-haul routes and increasing seat pitch in economy (Y) ahead of the wing to 35 inches. Passengers paying the higher economy fares and the airline's "Gold Elite" members will have access to those seats and will be able to book them online later this year. Rollout starts in July, and by November, all airplanes will be refitted. Fyfe said (ANZ) also is planning to enlarge the premium economy cabin on its 747-400s and 777-200ERs. "Premium economy (PY) has been such a success for us. There is a market there in long-haul, that will pay for a premium product," he said. When (ANZ) launched the cabin upgrade in 2004, it allocated just 23 upper deck seats on 747-400s, but since has added +16 seats on the main deck.

In the longer term, Fyfe said (ANZ) has turned its back on Boeing (TBC)'s catalog seat offering on the 787 and is designing its own seats. "We are not seeing anything in business (C) and economy (Y) that materially moves the industry forward," he claimed. He revealed that the carrier is developing its own seats with an innovation company from the USA. "We see that we can make the biggest step change in economy (Y)," he said. The seats will be installed in both 787s and 777-300ERs that will be delivered from 2010, and will be refitted to the balance of the fleet.

April 2008: Air New Zealand (ANZ) and Qantas (QAN) confirmed they would be seeking financial compensation from Boeing (TBC) as a result of the newly announced delays to the 787 program. Other customers preferred to remain quiet following the manufacturer's recent revelation that the 787's first flight would be delayed an additional six months to the 2008 fourth quarter. Meanwhile, both (ANZ) and (QAN) said they expected the announcement. (ANZ), which originally had expected the first of its eight 787-9s to arrive in late 2010, but now will wait at least until early 2012, said it "will enter into compensation discussions with Boeing (TBC)" as a result of the delay. "While disappointed, (ANZ) has retained sufficient flexibility in its existing portfolio . . . to ensure no capacity shortfall arises during this period," CFO, Rob McDonald said, adding (ANZ) was unsure if network expansion plans would suffer.

May 2008: Air New Zealand (ANZ) announced that its pre-tax profit for the year ending June 30 will fall by more than >23% because of soaring jet fuel prices. (ANZ) said earnings will be less than +NZ$200 million/+$157.8 million, down from +NZ$259 million the previous year. Last month, (ANZ) reduced its full-year profit forecast to +NZ$200 to +NZ$220 million. (ANZ) full year 2007/2008 = net profit of +$169 million (+$171 million). (ANZ) raised fares last month, and from September it is cutting capacity on its Auckland - London Heathrow service by switching to 777-200ERs from 747-400s.

Virgin Blue (VOZ) and Hawaiian Airlines (HWI) have cancelled maintenance work with (ANZ) after (ANZ) warned that it is facing industrial action from engineers (MT) in Auckland and Christchurch. The strike by members of the Engineering, Printing and Manufacturing Union and the Aviation and Marine Engineers Assn is due to start June 6. While the action excludes third-party work, the two airlines decided to take their work elsewhere. (ANZ) came close to closing down its maintenance facility in 2006, but reached agreement with engineers (MT) for restructuring and redundancies, resulting in a reduction of staff from 1,900 to 1,600. The latest dispute comes as engineers (MT) are pushing for a +5.8% pay increase, while the airline is offering +3.75%. It mirrors a similar demand by engineers (MT) working for Qantas (QAN), which is holding firm to a +3% increase


June 2008: Air New Zealand (ANZ) CEO, Rob Fyfe said (ANZ) is growing increasingly confident that commercial quantities of environmentally sustainable fuels, that meet all its stringent criteria, will become available over the next few years. Fyfe said that (ANZ) expects to use at least 1 million barrels of environmentally sustainable fuel annually by 2013. "(ANZ) is absolutely committed to being at the forefront of testing environmentally sustainable fuels for use in aviation, and we are confident that our hard work with partners like Boeing (TBC), together with the efforts of many of our peers, will see a step change sooner than many people realize," he told media in Auckland. He added: "This fundamental shift in fuel options should be embraced by the industry and we aim to see at least 10% of our total annual needs coming from environmentally sustainable fuels by 2013. Studies have already shown that sustainable fuels can lead to a significant reduction in carbon emissions with a -40% to -50% lower carbon footprint on a lifecycle basis." (ANZ)'s next step in pursuit of proving and commercializing sustainable fuels will be the world's first flight test of a large passenger airplane using fuel sourced from the Jatropha plant. The Rolls-Royce (RRC)-powered 747-400 test flight is expected to take place from Auckland in the fourth quarter, subject to final regulatory approvals and fuel testing by the engine manufacturer.

Jatropha is a plant that grows to approximately 3 m high and produces seeds that contain inedible lipid oil, that is used to produce fuel. Each seed produces 30% to 40% of its mass in oil and Jatropha can be grown in a range of difficult conditions, including in arid and nonarable areas. The Jatropha oil, (ANZ) is sourcing for refining for its test flight, comes from southeastern Africa (Malawi, Mozambique, and Tanzania), and India. It was sourced from seeds grown on environmentally sustainable plantations. "Jatropha satisfies all our criteria, and furthermore, it is likely to be available in the necessary commercial quantities to meet our needs within five years," Fyfe said. "We have already had offers from organizations in Asia and Africa willing to guarantee enough supply to meet our 2013 target."

(ANZ) said its fuel savings initiative is on track to see the airline reduce its CO2 emissions by more than >100,000 tonnes. General Manager Airline Operations, David Morgan told media in Auckland that "so far our flight operations program has delivered 91,000 tonnes in reduced carbon emissions in just over three years. We had a goal of topping 100,000 tonnes within five years, and we look like beating that by almost two years." (ANZ)'s fuel program includes "reducing weight on airplanes, more accurate fuel loadings so we are not flying with excess fuel weight, optimizing flight speeds, better use of ground power when airplanes are at the airport gate, and improved descent profiles," Morgan explained. He added that (ANZ) is using -36 million litres less fuel on an annual basis.

Governments around the world must work alongside airlines and manufacturers that are trying to make a difference in the environment, according to (ANZ)'s Rob Fyfe, CEO of one of the industry's greenest carriers. In the keynote address at the Eco-Aviation conference presented by Air Transport World (ATW) and Leeham Company in Washington, Fyfe argued, "While the development of emission trading schemes and carbon taxes may be relevant to some degree, airlines already have plenty of incentive to reduce fuel burn." He added, "Real step change will come from new technologies and alternative fuels and far more effort [from governments] should be diverted in this direction." He said the airline industry stands at the earliest stages of sustainable fuel development and "there are opportunities for forward-thinking governments to benefit if they get in early." He said the New Zealand government recently unveiled a NZ$700 million/$529 million research and development fund for the pastoral and food industry, and challenged politicians to make the same commitment to a tourism industry that contributes nearly 10% of the nation's Gross Domestic Product (GDP). While calling for macro solutions from governments, Fyfe detailed the significant effort (ANZ) makes to reduce fuel consumption. Some of those initiatives are more than four years old. No adjustment is too small; he said Chief Pilot, Dave Morgan told him that "if he puts two bottles of Coke in his flight bag and carries them around for a year without getting around to drinking them, he will burn an additional 400 litres of fuel."

Among (ANZ)'s initiatives has been working with pilots (FC) to reduce discretionary fuel uplift. "All our pilots (FC) now receive graphs that display their discretionary fuel uplift compared with all their peers and it has led to our more conservative pilots (FC) reducing the amount of discretionary fuel they carry," Fyfe said. "In total, we have saved nearly 100,000 tonnes of CO2 two years ahead of our scheduled goal date, and we're now using 36 million litres less fuel on an annual basis, delivering a saving of -NZ$43 million each year based on current fuel prices," he told delegates.

Asia/Pacific airlines are responding rapidly and emphatically to the soaring cost of fuel and slowing global economy. Thai Airways (TII) announced that it will quit its nonstop services from Bangkok to New York (JFK) and Los Angeles, and sell off its four A340-500s to help stem losses due to surging oil prices. It estimates that losses on the two routes at current fuel prices would top $120 million. China Airlines (CHI) told "Bloomberg News" that it will ax 100 flights per month - - 10% of its capacity - - mainly to the USA, while (EVA) Air told the same news agency that it will cut services by -5%. (CHI) also will eliminate -50 all-cargo flights per month. However, on the upside is the likelihood of launch of weekend direct charter flights between Taiwan and mainland China, which will serve as a prelude to full scheduled services. Meanwhile, (ANZ) announced it will raise fares for the second time in three weeks and cut services. Domestic and some international airfares will increase +4%, with flights to Australia, Japan and Hong Kong scaled back. These changes follow last month's fare hikes of an average +3% and a lowering of its profit forecast. Recently, Qantas (QAN) and Jetstar Airways (IMU) also have announced schedule reductions.

July 2008: Air New Zealand (ANZ) expects by year end to be the world's first Airbus (EDS) operator to have certified Required Navigation Performance (RNP) operations. General Manager Airline Operations, David Morgan said in a statement that the carrier "is working closely with the (CAA) to gain regulatory approval and expects the entire A320 fleet of 13 airplanes to be using (RNP) by the end of the year, making (ANZ) the first Airbus (EDS) operator in the world to have an entire (RNP)-capable Airbus (EDS) fleet." Its 737-300s currently use (RNP) on domestic operations to Queenstown, but the A320s serve the ski resort from Australia. Morgan said that over the past year, 737s used (RNP) on more than >120 flights into Queenstown, which is nestled between mountain ranges with a difficult approach.

Air New Zealand (ANZ) will freeze senior executive salaries and has "challenged each division to identify opportunities to review nonessential activity and reduce employee numbers through attrition and nonreplacement of roles that are not operationally critical," CEO, Rob Fyfe told "Bloomberg News."

(ANZ) launched twice-weekly, Auckland - Beijing aboard a 777-200ER.

August 2008: Air New Zealand (ANZ) and key partners aim to demonstrate commercial aviation's potential to reduce carbon emissions by millions of tonnes annually with a September 12 test flight between Auckland and San Francisco. The 777-200ER operation, called "ASPIRE I," will operate under optimum flight planning conditions through the involvement of Airways New Zealand, the USA (FAA), and Airservices Australia. (ANZ) General Manager Airline Operations, David Morgan said that "by operating under optimum planning conditions, we will be able to demonstrate how many millions of tonnes of fuel and carbon emissions can be saved by airlines globally, if they are permitted to utilize concepts and technologies in flight efficiency, in all phases of commercial flight." Airways New Zealand, the (FAA) and Airservices Australia launched "ASPIRE" last year in an effort to build on the extensive work done by the three authorities on such projects as Future Air Navigation Services (FANS).

September 2008: 1st 6 months net profit = +$64 million, or +$49 million, ex-special items.

Air New Zealand (ANZ) Chairman, John Palmer warned shareholders at the annual general meeting (AGM) that more network restructuring may be required as market volatility can change "on a dime." To deal with that environment, (ANZ) now reviews its route structure every two weeks, rather than the customary six months. Palmer told "The New Zealand Herald" after the meeting that "every 2 to 4 weeks, we're asking, 'Should we be adjusting on an incremental basis?' You have to be in a position to move very fast, because traffic flows and profitability on various routes can turn on a dime now." Palmer reiterated that the airline will make a profit if oil stays below $140; however, slackening demand has seen a -6% cut in long-haul capacity.

(ANZ) will double the number of premium economy seats on its eight 777-200ERs to 36 by June 2009. Twice, it has increased the number of premium economy (Y) seats available on its 747-400s to the current 39. The new 777-200ER configuration will comprise 26 business (C), 36 premium economy and 242 economy (Y) seats.

Air New Zealand (ANZ) launches a new cabin product on its A320 and 767 fleets used on Pacific and Australian services on September 9. Rather than back away from capital expenditure, (ANZ) has embraced further product upgrades designed to snare premium customers. This year, it is investing more than NZ$55 million/$38.3 million, installing InFlight Entertainment (IFE) throughout the 767s and A320s used on short- and medium-haul routes and increasing seat pitch in economy (Y) ahead of the wing to 35 inches. Passengers paying the higher economy (Y) fares and Gold Elite members will have access to those seats and can book them online. Rollout of all these airplane features will be completed by November.

"It's one small step for mankind," said air traffic services provider Airways New Zealand CEO, Ashley Smout following the arrival of Air New Zealand (ANZ) Flight 8, the first "gate-to-gate optimized flight," at San Francisco International (SFO). The 777-200ER flight, dubbed Asia & South Pacific Initiative to Reduce Emissions (ASPIRE) 1, started in Auckland and consumed -4,600 litres less fuel than normal using a host of strategies to minimize fuel usage. That translated into -12 tons fewer CO2 emissions. (ASPIRE) is a joint initiative among the USA (FAA), Airways NZ, and Airservices Australia.
The 777-200ER was cleared for a "tailored arrival" - - a continuous descent at idle thrust - - at (SFO) and touched down on Runway 28L, 5 minutes ahead of schedule. (SFO) is playing a leading role in tailored arrivals, a joint project among Boeing (TBC), (NASA), the (FAA), and the airport. According to (FAA) Acting Administrator, Bobby Sturgell, "639 tailored arrivals have been undertaken at the airport: 186 complete and 453 partial."

United Airlines (UAL), Japan Airlines (JAL), (ANA), and Qantas (QAN), are using tailored arrivals at (SFO), in addition to (ANZ), which launched the procedures in January and up to the end of May, had saved 69,410 kg of CO2 emissions using the tactic.

(ANZ) Chief Pilot, David Morgan, who was on the (ASPIRE) 1 flight but not part of the cockpit crew, said during flight that the crew had received two updated flight plans using Dynamic Airborne Re-routing, which updates the weather and wind model every 6 hours. (ANZ) employed ground power at Auckland to reduce (APU) usage and was given a priority taxi to the runway. A near-full-power climb was used to reach the initial altitude of 33,000 ft to save fuel and the airplane later was cleared to 39,000 ft in three 2,000-ft "steps." Datalink was used where possible for (ATC) communications, and only the clearance for takeoff was voice. United (UAL) and (QAN) will follow with (ASPIRE) flights over the next few months.

Boeing (TBC) remains bullish on the scientific progress of biofuel development, with Director Environmental Performance, Billy Glover saying that the manufacturer is confident commercially viable biofuel will be available to partially power aircraft by 2013. Speaking in Seattle at an Air New Zealand (ANZ) environmental briefing, Glover reiterated his previous statements that the pace of breakthroughs has been "remarkable" in recent years, saying "We are making amazing progress and I continue to be surprised." He noted that some algae-based fuels being studied are "showing better [potential performance] qualities than current jet fuel." He called algae the "Holy Grail" of alternative fuel offerings.

(ANZ) will fly a 747 later this year partially powered by jatropha oil, which emits one-third the CO2 of current jet fuel. Jatropha has an oil yield of around 250 gallons per acre, and is the most advanced of the biofuels currently being explored for use by the airline industry. Glover said euphorbia from the halophyte family, which grows in salty mashes and mangrove swamps, yields more than >1,000 gallons per acre, while algae yields 2,000 gallons per acre.

Aviation Partners Boeing (APB) said it expects its 767 winglet program to be a runaway success and announced agreements to fit blended winglets on 767-300ERs operated by Air New Zealand (ANZ) and Hawaiian Airlines (HWI). (ANZ) said it will fit its five 767-300ERs with blended winglets by the end of next year, and (HWI) said it will have eight of the type fitted by the end of 2010. (APB) claims that winglets on 737s and 757s have saved a collective 1.2 billion gallons of fuel and 11.5 million tonnes of CO2, while reducing those types' noise footprint by -6.5%. It has sold winglets to 140 airlines and 95% of all 737NGs are fitted with them. It is working on four winglet concepts for the 777 and hopes to finalize a design for that airplane type by December. (ANZ) is expected to be the launch customer. (ANZ) General Manager Airline Operations, David Morgan said that he expects the airline to save more than >NZ$7.5 million/$5 million in fuel costs and 16,000 tonnes of CO2 emissions annually, by fitting blended winglets on its 767-300ERs. The 767 fleet, which operates regional international services, will be fitted progressively from next July. The work will be carried out by (ANZ) Technical Operations.

The 767-300ER winglets are 3.4 m high and the program, launched by American Airlines (AAL), is expected to gain certification later this year. (APB) Director Sales & Marketing, Craig McCallum said the 767 winglet program has been the fastest-selling, with 141 shipsets already sold. He forecast fuel savings of -4% to -6% for medium/long-range flights, with 500-nm flights experiencing a -1.5% fuel savings. (ANZ) also has committed to fitting its entire fleet of 42 airplanes with (CCT) Systems' zonal dryers. The electrically powered dryers reduce moisture trapped in insulation between the airplane outer skin and cabin lining, lowering airplane weight. (ANZ) expects fleetwide savings of -500,000 gallons of fuel annually owing to the dryers, which are standard on the 787 and an option on the A350.

Boeing (TBC) and Honeywell (SGC) subsidiary, UOP have brought together a group of airlines and environmental organizations that will work to accelerate the development and commercialization of new sustainable aviation fuels. The Sustainable Aviation Fuel Users Group (SAFUG) will work with the World Wildlife Fund and Natural Resources Defense Council (NRDC) and makes commercial aviation the first global transportation sector to drive sustainability practices into its fuel supply chain voluntarily. (SAFUG)'s charter is to enable the commercial use of renewable fuel sources that will reduce greenhouse gas emissions, while lessening commercial aviation's exposure to oil price volatility and dependence on fossil fuels.

Initial airlines involved are Air New Zealand (ANZ), Air France (AFA), (ANA), Cargolux (CLX), Gulf Air (GUL), Japan Airlines (JAL), (KLM), (SAS), and Virgin Atlantic Airways (VAA), which account collectively for 15% of commercial jet fuel use. Others, such as Continental Airlines (CAL), are expected to join. All members subscribe to a sustainability pledge stipulating that any sustainable biofuel must perform as well as or better than kerosene-based fuel but with a smaller carbon lifecycle. The group pledged to consider only renewable fuel sources with minimal impacts to the biosphere. In addition, cultivation and harvest of plant stocks must provide socioeconomic value to local communities.

"This task force comes at just the right time to help airlines cut costs and decrease their greenhouse gas emissions," said Liz Barratt-Brown, (NRDC) senior attorney and keynote speaker at June's Eco-Aviation conference presented by Air Transport World and Leeham Co in Washington.

Boeing Commercial Airplanes Managing Director Environmental Strategy, Billy Glover added, "This is a tremendous opportunity for leading airlines, supported by well-respected energy and environmental organizations, to help commercial aviation take control of its future fuel supply in terms of origin, sustainability and environmental impacts."

(SAFUG) announced two initial sustainability research projects. Yale University's School of Forestry & Environmental Studies, through funding provided by Boeing (TBC), will conduct the first peer-reviewed comprehensive sustainability assessment of jatropha curcas, to include lifecycle carbon dioxide emissions and the socioeconomic impacts to farmers in developing nations. Similarly, (NRDC) will conduct a comprehensive assessment of algae to ensure it meets the group's sustainability criteria.

CTT Systems announced that Air New Zealand (ANZ) ordered 42 Zonal Drying Systems to be installed in 13 A320s, five 767s, 16 737s and eight 777s. The systems, which eliminate condensation in the airplane, are scheduled for installation starting in November.

October 2008: Air New Zealand (ANZ) will launch six-times-weekly, Auckland - Masterton on February 16 aboard an Eagle Air Beech 1900D.

November 2008: Air New Zealand (ANZ) announced that up to -200 long-haul cabin staff (CA), recruitment, airline operations, and technical operations planning and management employees will be laid off. "We have been working hard on a series of initiatives to minimize the need for redundancies," CEO, Rob Fyfe said, mentioning pilot (FC) leave without pay, introducing part-time hours for cabin crew (CA), leaving empty positions unfilled and freezing executive salaries, among others. "However, it has become clear that these measures will not fully address the excess staff levels we now have" as the result of previously announced capacity reductions, especially the 8% year-over-year cut in long-haul flying. Half the redundancies, the "majority" of which (ANZ) expects to be voluntary, will come from long-haul flight attendants (CA). Fyfe said the carrier will save more than -NZ$20 million/-$10.7 million per year from the job cuts "and a current review of all spending".

The world's first commercial aviation test flight powered by a sustainable second-generation biofuel will take place on December 3 on an Air New Zealand (ANZ) 747-400 with a jatropha blend powering one of the Rolls-Royce (RR) (RB211) engines. The flight is a joint initiative among (ANZ), Boeing (TBC), Rolls (RR) and (UOP), a Honeywell (SGC) company. The jatropha-based fuel, a 50/50 blend with Jet A1, has been certified as suitable by (RR). The jatropha crude oil was converted successfully to biojet fuel using "proprietary" (UOP) fuel processing technology, "marking the world's first large-scale production run of a commercially viable and sustainable biofuel for aviation use," according to the companies. In a statement, (RR) fuels specialist, Chris Lewis said testing "showed the final blend has excellent properties meeting, and in many cases exceeding, the stringent technical requirements for fuels used in civil and defense airplanes. The blended fuel therefore meets the essential requirement of being a 'drop-in' fuel, meaning its properties will be virtually indistinguishable from conventional Jet A1 fuel." The jatropha oil comes from southeastern Africa (Malawi, Mozambique, and Tanzania) and India. It was sourced from seeds grown on environmentally sustainable farms. The jatropha plant produces seeds containing inedible lipid oil used to produce the fuel. It can grow across a range of difficult conditions, including arid and otherwise nonarable areas.

The partners have insisted that any environmentally sustainable fuel must meet social, technical, and commercial criteria. They enlisted Terasol Energy to certify independently that the fuel met those standards.

United Airlines (UAL) completed the second (ASPIRE) (Asia and South Pacific Initiative to Reduce Emissions) flight from Sydney to San Francisco (SFO) and said it saved -1,564 gallons of fuel and -32,656 lbs of carbon dioxide emissions. (UAL) said that 11 fuel-saving initiatives were deployed "from gate to gate." The 777 flight, dubbed "(ASPIRE) United," followed in the footsteps of a similar flight operated by (ANZ) in September. (UAl) said it reduced fuel burn and emissions "by using up-to-the-minute fuel data, priority takeoff clearance, normally restricted airspace around Sydney's airport, and new arrival procedures." The flight used a "tailored arrival" - - a continuous descent at idle thrust - - at (SFO), with California Governor, Arnold Schwarzenegger joining the pilots (FC) in the cockpit to observe the landing.

Rob Mead, (TBC)'s lead engineer for advanced (ATM) air/ground communications, said that the 777 executed "a picture perfect tailored arrival." He said the flight was similar to the (ANZ) flight, but that (UAL)'s 777 had more advanced digital data link systems on its flight deck, enabling better communication with Air Traffic Control (ATC). "The more that the (FAA) can use these systems [to communicate with airplanes], the more airlines will be encouraged to put them aboard," he said. (ASPIRE) is a partnership among the (FAA), Airservices Australia, and Airways New Zealand.

(ANZ) will roll out its new domestic airport product featuring a range of technical and design innovations designed to speed check-in and boarding. The unveiling will take place at Auckland's domestic terminal, where new kiosks will enable passengers to print their own bag tags and a conveyor belt bag drop zone will help shorten or eliminate queues. New gate scanners will allow for straight-to-gate check-in and boarding for those without bags. (ANZ) Group General Manager, Short Haul Airlines, Bruce Parton said that 12 months ago the airline set about "to create and deliver a new experience, that would allow customers to move quickly and seamlessly through domestic airports. Our goal was to get rid of frustrating queues, cut customer waiting time, and make checking in and boarding as quick and easy as possible."

Christchurch will follow on November 17, and Wellington shortly thereafter, with other airports getting the upgrade over the next six months. (ANZ) is investing NZ$30 million/$17.7 million in the makeover, which also will include (RFID) identifiers attached to the back of mobile phones to facilitate ticketing and boarding for certain loyalty program members. The airline recently reconfigured its 16 domestic 737s to offer a new Space+ section in the front half of the cabin with an additional 2 to 5 inches of legroom.

(ANZ) received Civil Aviation Authority of New Zealand (CAANZ) certification for Required Navigation Performance (RNP) operations into Queenstown for its 15 A320s. It now is the only airline able to offer international (A320) and domestic (737) (RNP) operations into the popular tourist destination, which is nestled among mountain ranges.

The Australian Competition and Consumer Commission (ACCC) rejected a transpacific (ANZ)/Air Canada (ACN) code share pact. The (ACCC) issued a draft determination denying authorization for the two airlines to code share on (ACN)'s Sydney - Vancouver services and (ANZ)'s Auckland - Vancouver flights, claiming it would lessen competition. The airlines argued that neither operates on the other's routes and both would promote each other's services, bringing more tourists to Australia and New Zealand.

(ANZ) called Australia's competition watchdog "inconsistent" following the preliminary rejection of its proposed code share with (ACN) on transpacific routes. ANZ Group General Manager International Airline, Ed Sims called on the Australian Competition and Consumer Commission (ACCC) to "demonstrate consistency when making a final ruling on its application for a Cooperation Agreement with (ACN)." The proposed agreement involves the two airlines jointly promoting and selling direct flights between Sydney and Vancouver (operated by (ACN)) and Auckland and Vancouver (operated by (ANZ)). "As the (ACCC) noted, there are already four main carriers on the route," Sims said. "As evidenced around the world, wherever there are two or more carriers, competition is intense and consumers benefit through low fares and a choice of frequency, not to mention a variety of product offerings. Therefore, we are struggling to understand how the (ACCC) has formed its preliminary view."

ACCDT: ACCDT: A French rescue team recovered the flight data recorder (FDR) from the (ANZ) A320-232 (2500, /05 D-AXLA), that crashed into the Mediterranean Sea November 27, on approach to Perpignan during a test flight, but the (FDR) and previously recovered cockpit voice recorder (CVR) reportedly are badly damaged. The airplane had been leased from (ANZ) to XL Airways Germany (SGU) since May 2006, and was being test flown prior to its scheduled December 1 return to owner (ANZ). Two (SGU) pilots (FC), four (ANZ) personnel and one New Zealand Civil Aviation Authority inspector aboard the airplane were killed. The A320-232, which first flew in 2005, still was registered to (SGU), but had been repainted in (ANZ)'s livery. The acceptance flight was the second of two test flights on November 27. According to Flight Safety Foundation (FSF)'s Aviation Safety Network, the airplane lost radio contact at 3,500 ft, then struck the sea and broke up. "If we look at the final stages of the flight as best as we can piece it together from the factual information, it appears to have been following the flight path that it was expected to follow on its approach to Perpignan Airport," (ANZ) CEO, Rob Fyfe told "Radio New Zealand."

The crash and its aftermath caused (ANZ) to postpone its planned 747-400 biofuel flight from December 3 to a yet-determined date early next year. (ANZ) said its "full efforts and resources" this week will be focused on the crash investigation and providing support" to victims' families.

The French Bureau d'Enquetes et d'Analyses (BEA), responsible for investigating aviation accidents, said it cannot explain why an (ANZ) A320 crashed into the Mediterranean Sea on approach to Perpignan on November 28. "At this stage of the inquiry, nothing explains why the airplane left its trajectory and crashed into the sea," the (BEA) said in a statement. It confirmed the airplane's flight recorders have been found and that their protective casings and memory cards appear to be intact, but that investigators have been unable to extract information. "Additional work is needed, although it is not possible at the moment to predict results," the agency said. It also noted that "the crew (FC) had given no indication of any problem to air traffic control (ATC) when it stopped responding to their calls.

Later, Airbus (EDS) issued a Safety Bulletin to A320 operators relating to the importance of protecting all aerodynamic data sensors during painting and maintenance and performing low-speed tests at safe altitude. The warnings came as French investigators closed in on the cause of the crash of an (ANZ) A320 being flown by an (SGU) flight crew (FC) on a test flight off the French coast. All seven occupants died when the A320 plunged into the Mediterranean Sea near Perpignan.

Investigators have not announced their findings, but (ANZ) CEO, Rob Fyfe welcomed the recommendations from (EDS), cautioning, "Any speculation as to the outcome of that investigation into the flight . . . would be premature and inappropriate." Fyfe said (ANZ) already has followed the (EDS) recommendations and had not experienced any issues in relation to either of the requirements. "The bulletin from (EDS) is a precautionary measure intended to remind operators of existing manufacturer recommendations," he said.

(See follow-up report in February 2009). SEE ATTACHED - - "ANZ-SGU-ACCDT-2008-11."

A report in July 2010 stated that an inquiry by French prosecutors concluded that a combination of pilot error and faulty sensors caused an Air New Zealand (ANZ) A320 to crash into the Mediterranean Sea during a November 2008 test flight conducted by XL Airways Germany (SGU) pilots, killing all seven people aboard.

Prosecutors determined that no criminal misconduct took place and decided against levying any charges. The A320 had been leased to (SGU) for more than two years by (ANZ) and was on an acceptance flight on November 27, 2008, in advance of its planned December 1 return when it crashed off Canet-en-Roussillon, killing two (SGU) pilots, four (ANZ) personnel and one New Zealand (CAA) inspector.

The French (BEA) issued an interim report in 2009 that alleged the airplane stalled during a low-speed, low-altitude test maneuver as it was coming in to land at Perpignan. French Deputy Prosecutor, Domnique Alzeari told media in Perpignan that "faulty sensors might also be partly to blame for the crash." Two of the three sensors apparently were not working and thus the excessive pitching of the A320 "could not be corrected by the electronic brain of the airplane," he said. It is understood that this could be "linked to cleaning operations" on the A320 the day before the crash, he added, explaining that some water may have lodged in the sensors and frozen in flight, causing them to fail. No charges will be filed, the prosecutor stated.


(ANZ) is allowing economy (Y) passengers to purchase an otherwise empty seat for NZ$75/$41.12 per sector. Called a "comfort seat," it has been available for the past month at check-in for flights from Auckland to Los Angeles and San Francisco, and was added to Vancouver service. General Manager International Airline, Ed Sims said response has been enthusiastic despite the fact that (ANZ) has "not marketed the product as yet." Inbound availability is expected soon, with the entire long-haul network to follow.

December 2008: Air New Zealand (ANZ) issued a challenge to key New Zealand airports to follow Singapore Changi airport (SIN)'s decision to cut landing charges by -10% to stem the drop in tourists. (ANZ) Deputy CEO, Norm Thompson said Auckland, Wellington, and Christchurch should follow suit and work with airlines to help stimulate travel. "We all need to play our part in stimulating travel. Airports could assist in keeping fares lower by reducing landing fees during this economic downturn," he said. "Unlike Singapore, the costs of landing at Auckland, Wellington, and Christchurch airports are excessive already by international standards. That (CAAS) is stimulating the market by lowering landing costs at Singapore Changi (SIN) even further should be a loud signal to New Zealand airports."

(ANZ) has reduced fares to Australia by an average of -15%, with some dropping by up to -45%, while Pacific Island fares have fallen twice in the same period. Thompson said that across the rest of the network, (ANZ) has increased dramatically the number of lowest available fares, including doubling the number of cheapest fares on domestic services. It has had a long-running feud with Auckland over its landing charges and has suggested moving some domestic flights to the Whenuapai Airbase in West Auckland.

Air New Zealand (ANZ) will conduct the world's first commercial aviation test flight powered by a sustainable second-generation bio-fuel on December 30. The flight was scheduled for December 3 but was postponed after the loss of one of (ANZ)'s A320s during a "return from lease acceptance test flight" in France. The 2-hour bio-fuel test flight will operate from Auckland, with the jatropha blend powering one of the 747-400's Rolls-Royce (RR) (RB211) engines.

The world's first commercial aviation test flight powered by a sustainable second-generation biofuel is ready for liftoff. On December 30, an (ANZ) 747-400 will take off from Auckland for a 2-hour flight with one Rolls-Royce (RB211) powered by a jatropha blend. The pilot (FC) in command, (ANZ) 747 Fleet Manager, Keith Pattie, and his crew will operate the flight predominantly over the wider Hauraki Gulf area. They will undertake a number of fuel tests confirming and measuring the performance of the engine and fuel systems at various altitudes and under a variety of operating conditions.

(ANZ) announced the acquisition of a "cornerstone shareholding" in Australian tourism company "V3" as part of its effort "to further diversify into the wider tourism sector." The companies will establish a joint venture, open booking exchange company in New Zealand.

Air New Zealand (ANZ) claimed that the New Zealand Commerce Commission (NZCC) is "grandstanding to justify its existence" after announcing plans to bring charges against (ANZ) and 12 other airlines relating to cargo price-fixing. (ANZ) General Counsel, John Blair said the airline never has condoned anti-competitive conduct and has cooperated fully with (NZCC)'s investigation, providing hundreds of thousands of documents and making many current and former employees available for interview. "Despite extensive reviews of our own files and interviews with key staff, (ANZ) has not been able to identify any evidence of price-fixing or cartel behavior. We have repeatedly asked the Commerce Commission to present us with any evidence to indicate that (ANZ) has breached any laws. To date, they have been either unwilling or unable to do so," Blair said, adding that the body "failed to engage with us for almost three years." He noted that (ANZ) invested several million dollars in that time, analyzing more than >1 million documents and speaking to many current and former employees. He also accused the (NZCC) of making the investigation many times more expensive than it needed to be. "Whilst we have not had access to any of the documents or allegations of wrongdoing from the (NZCC), we expect to vigorously defend the proceedings, which we understand relate to four former and one current cargo division employee," he said.

However, the (NZCC) Chairman, Paula Rebstock told the New Zealand Press Association that the "conduct is very serious. It's affected a level of trade that we've never seen in New Zealand of nearly $3 billion, which has done very significant harm to the New Zealand economy." The (NZCC) does not set penalties, but Rebstock said that assuming convictions, penalties will vary, with discounts of up to 50% for cooperating carriers like Qantas (QAN) and British Airways (BAB), which are part of the investigation but already have admitted guilt in similar cases. The agency also is charging Cargolux Airlines (CLX), Emirates (EAD), Garuda Indonesia (GIA), Japan Airlines (JAL), Korean Air (KAL), Malaysia Airlines (MAS); Singapore Airlines Cargo (SQC), Singapore Airlines (SIA), and Thai Airways (TII).

(ANZ)'s Australia-based aerospace engineering support services company (TAE) purchased Australian aviation service provider Tenix Aviation. The acquisition follows the November purchase of Masling Industries. Tenix is based in South Australia and Masling is located in New South Wales. (TAE) is a leading engineering services provider and Australia's leading military gas turbine Maintenance Reapair & Overhaul (MRO) operation. (ANZ) General Manager Technical Operations, Chris Nassenstein said the two purchases are part of the airline's continued diversification into (MRO).

January 2009: Air New Zealand (ANZ) operated a 2-hour 747-400 biofuel test flight from Auckland on December 29 using a 50/50 blend of jatropha-based fuel and standard jet fuel to power one of the airplane's Rolls-Royce (RR) (RB211)s. The flight was conducted in conjunction with Boeing (TBC), (RR) and Honeywell (SGC). "Today, we stand at the earliest stages of sustainable fuel development and an important moment in aviation history," (ANZ) CEO, Rob Fyfe said, adding that the flight was the "first to prove the viability of a second-generation biofuel such as jatropha."

Chief Pilot, David Morgan, who was on board the airplane, said the flight crew conducted "a wide variety of tests under normal and non-normal operating conditions, designed to test the biofuel to the fullest extent." For example, when the airplane reached an altitude of 20,000 to 25,000 ft, the main fuel pump for the engine partially powered by the biofuel was switched off to test the lubricity of the fuel, ensuring its friction did not slow down flow. The jatropha-derived fuel was supplied by Terasol Energy.

Continental Airlines (CAL) plans to operate a 737-800 test flight this month using a fuel blend including components derived from algae and jatropha.

The Australian Consumer and Competition Commission (ACCC) announced a final rejection of plans by Air New Zealand (ANZ) and Air Canada (ACN)'s transpacific code share operation that included (ACN)'s Vancouver - Sydney service. "The outcome is in stark contrast to trends in Europe, USA and Asia, where airlines are increasingly consolidating in response to toughening economic conditions dramatically affecting the industry," (ANZ) said. "It also contrasts with approvals gained by Qantas (QAN) in respect of collaboration with South African Airways (SAA) and Japan Airlines (JAL) on routes with equivalent levels of competition." (ACCC) Chairman, Graeme Samuel said the body "can authorize such an agreement where it meets a public benefit test, but the (ACCC) considers that the test has not been met here."

DAE Capital (DAZ) signed a sale and leaseback contract with (ANZ) covering two 777-300ERs. The lease terms are for 12 years and the airplanes are due to be delivered in January and March 2011.

February 2009: Air New Zealand (ANZ) said January yield was up +8.1% year-over-year. It flew 2.35 billion (RPK)s traffic during the month, down -8.5%, against a -6.6% fall in capacity to 2.82 billion (ASK)s. Load factor dropped -1.7 points to 83.4% LF.

(ANZ) said its foreign exchange hedging program limited the effects of fluctuating fuel prices and the economic downturn as it remained profitable in the fiscal first half ended December 31, reporting a +NZ$24 million/+$12.3 million net that was -79% lower than the year-ago result. Six-month operating revenue increased +3.7% year-over-year to NZ$2.4 billion, with foreign exchange movements contributing NZ$75 million to the gain. Passenger numbers declined -4.3% to 6.3 million, but (ANZ)'s premium economy and business (C) premier products helped boost yield +12.3% on long-haul routes and +6.4% on regional routes. Overall yield increased +7.5% to NZ13.9 cents.

Expenses climbed +11.5% to NZ$2.06 billion, with fuel costs soaring more than >69% to NZ$948 million. A foreign exchange loss of -NZ$69 million in the six months ended December 31, 2007 reversed to a +NZ$214 million gain in the recent reporting period. Traffic fell -4.6% to 13.98 billion (RPK)s against a -3.6% decline in capacity to 17.79 billion (ASK)s, lowering load factor -0.8 point to 78.6% LF.

CEO, Rob Fyfe said (ANZ) continued to invest in areas such as "product, domestic airports, engineering and innovative distribution" to increase competitiveness. The key strategy going forward is to match supply to demand "while striving to be the market share leader in all our chosen markets," he said in a media conference call. "In the first half of 2009, we have taken a proactive approach to capacity management that has been more agile and disciplined than in past industry downturns. In these challenging times, it is not the largest airlines that will outperform, but the ones most responsive to change," Fyfe added.

(ANZ) cut capacity and retrenched 100 staff in November but is working various strategies to minimize the need for further redundancies. These include pilots (FC) taking leave without pay, introducing part-time hours for cabin crew (CA), not renewing temporary contracts and freezing executive salaries.

The fleet's average age is just seven years and there are no deliveries of new airplanes scheduled until the end of 2010, when the first of five 777-300ERs are supposed to arrive. Progress payments for its eight 787-9s have moved out two years. (ANZ) has NZ$1.4 billion in cash reserves, limited debt repayments, no covenants or refinancing risk and its gearing has declined from 52.7% to 45.5%.

(ANZ) General Manager Public Affairs & Group Communications, Mike Todd accepted the Air Transport World (ATW) "Airline Public Relations" Award. He noted that much of (ANZ)'s Public Relations success "has been underpinned by CEO, Rob Fyfe and his management team's willingness to front for the media at any hour or the day or night." And he encouraged "all participants to make a big effort to promote their environmental endeavors no matter how large or how small."


Australia and New Zealand authorities are moving toward scrapping customs checks for trans-Tasman flights, which could reduce return fares by approximately -A$100/-$64.44 and provide a travel stimulus, airline executives said. Flights between the countries would be reclassified as domestic. Passengers would either partially clear customs before boarding via automated border processing gates or customs checks would be eliminated entirely. Officials have been in discussions for more than >18 months, but the sticking point has been Australian Customs Service concerns that New Zealand's screening was not as robust. The issues have been addressed and working groups are closing on the fine detail of the scheme.

Virgin Blue (VOZ) CEO, Brett Godfrey said that removal of the Australia Passenger Service Charge of A$48.42 on one-way fares would be "a great boost to travel" across the Tasman Sea. A Jetstar Airways (IMU) spokesperson said that the Qantas Group airline supports the concept and highlighted that even a 1% change in fares resulted in a 2% change in behavior in passenger movement. "Without doubt this would be a great stimulus to travel between Australia and New Zealand," the spokesperson said, adding, "We are now working with the various parties to refine a secure and seamless system."

Follow-up Report re-November 2008 (ANZ)/XL Airways Germany (SGU) A320 accident: The A320 that crashed into the Mediterranean Sea during a November 27 test flight conducted by (SGU) pilots (FC) was in the midst of a low-speed test conducted on approach to Perpignan, France when the cockpit crew (FC) lost control, according to a preliminary report issued by French investigators that raised questions about the test's timing and recommended that (EASA) develop regulations for "acceptance" flights. The airplane had been leased to XL Airways Germany (SGU) since May 2006 and was being flown prior to its scheduled December 1 return to owner (ANZ). Two (SGU) pilots (FC), four (ANZ) personnel and one New Zealand (CAA) inspector aboard the A320 were killed.

France's Bureau d'Enquetes et d'Analyses (BEA) did not cite a cause for the crash in the report, but it pointed out that there are no regulations for these types of non-revenue flights, leaving those operating them wide latitude in developing procedures. The (BEA) called on (EASA) to develop specific regulations for acceptance flights and, while those rules are being developed, to authorize such flights on a "case-by-case" basis.

The doomed A320 flight was shortened because "the program of planned checks could not be performed in general air traffic," the (BEA) said. As a result, it was decided that the low-speed check intended to take place during the flight would be conducted during approach. (BEA) Director, Paul-Louis Arslanian told "The New Zealand Herald" that the test was performed "not only [at] low altitude but also [during a portion of flight] linked with specific procedures and heavy workload."

Another issue raised by the report is that the (SGU) pilots (FC) conducting the flight "had not received any specific training for this type of flight." An (ANZ) pilot (FC) on board the A320 had received "specific training" in a simulator but acted only as an adviser. The (BEA) said an accident cause likely will not be identified for some time. But the interim report called for remedying the "almost complete absence of indications or standards" for handover flights. "No documents detail the constraints to be imposed on these flights or the skills required of the pilots (FC)," the report stated. "As a result, operators are obliged to define for themselves the program and the operational conditions for these flights . . . without necessarily having evaluated the specific risks that these flights may present."


A September 2010 report by the French (BEA) stated the following:

"The French (BEA) confirmed the earlier findings of prosecutors that the incorrect cleaning of critical angle of attack sensors and pilot error were to blame for the loss of an A320 operated by XL Airways (SGU) on a return-from-lease acceptance flight off the coast of France in November 2008.

The A320 had been leased to (SGU) for more than two years by Air New Zealand (ANZ) and was on an acceptance flight on November 27, 2008, in advance of its planned December 1 return, when it crashed off Canet-en-Roussillon, killing two (SGU) pilots (FC), four (ANZ) personnel and one New Zealand (CAA) inspector. In its report on the accident, (BEA) said the flight was the first for the A320 following maintenance at Perpignan-based (EAS). It noted that during the rinsing of the airplane by (EAS) personnel, proper cleaning procedures were not followed and the airplane's angle of attack sensors were left unprotected. Water penetrated two of the three sensors, which later froze during the flight.

Compounding the situation, reported (BEA), was the fact that despite flight approval from Perpignan Air Traffic Control (ATC), a separate regional controller refused permission to perform requested maneuvers. That led to the pilots (FC) changing and adapting the flight's planned program, adding complexity to the flight.

(BEA) said loss of control followed the improvised demonstration of the functioning of the angle of attack protections during a low speed test, with the blockage of the angle of attack sensors making it impossible for these protections to trigger. With the pilots (FC) unaware of the blockage of the angle of attack sensors, the demonstration was not stopped before the airplane stalled.

(ANZ) CEO, Rob Fyfe said the airline appreciated (BEA)'s exhaustive investigation and welcomes the opportunity to review the recommendations alongside regulators to identify where operational improvements on non-revenue flights can be made. "The investigative process is designed to ensure the aviation industry gets critical learning opportunities that will ultimately further improve safety in one of the most cautious and risk-adverse industries in the world," he said. "Check-flights are completed every day by airlines across the globe but as highlighted in the report there is no regulated standard. We have been operating to the manufacturer's standard, in accordance with industry practice and with approval of our own (NZCAA), but clearly a regulatory framework to create consistency and further minimize the opportunity for a tragedy like this to happen is needed."

1 order 777.

March 2009: Air New Zealand (ANZ) for the last half of calendar year 2008 earned a +$12 million net profit, or +$18 million less special items. For the full year (ANZ), net profit was +$76 million, or +$67 million, less special items. (ANZ) expects financial performance to significantly improve in the first half of calendar year 2009, assuming fuel and other conditions remain stable. (ANZ) has been managing its capacity with its (ASK)s down -4% during the last half year and its long-haul (ASK)s scheduled to be down -15% this spring.
This is taking into account the "inroads" by the likes of Pacific Blue (PBZ), Jetstar( (by Jetconnect (QNZ)) on its domestic routes and Emirates (EAD) with its A380s on trans-Tasman markets. Add to that the general global economic disaster and the lack of cargo demand.

(ANZ) operated a "tailored arrival" into Los Angeles as part of a trial to prove the procedure's viability into one of the world's busiest airports. (ANZ) Flight 2, a 777-200ER, completed the tailored arrival at 3 pm local time. It was approximately 30 miles shorter than the conventional arrival and features a customized, efficient descent from cruise to runway, eliminating a stepped approach and saving time and fuel. "Given we operate 747s and 777s on 14 flights per week into Los Angeles from New Zealand, the potential fuel savings are substantial," (ANZ) Chief Pilot, David Morgan said, estimating annual savings of at least 600,000 liters of fuel and 1,500 tons of CO2. "The results we have already achieved at San Francisco (SFO) demonstrate the very real difference that efficient, highly automated air traffic control (ATC) systems can make to airline operations." Last summer, (ANZ) used a tailored arrival into (SFO) as part of the Asia and South Pacific Initiative to Reduce Emissions program. On that flight alone, it saved 4,600 liters of fuel and 12 tons of CO2.

(ANZ) says 53% of its revenue comes from the New Zealand point of sale; 14% from Australia/Pacific islands.

(ANZ) endorsed a government proposal to subsidize one work day over a two-week period to help national businesses through the economic downturn. CEO, Rob Fyfe said (ANZ) would embrace the aid if it is forced to reduce capacity further and consider redundancies. "While (ANZ) is holding its own at the moment, if the airline was placed in the position of having to consider further redundancies through capacity reductions, we would certainly be talking to our people affected and would be willing to top up the government's provision to utilize the nine-day fortnight proposal," Fyfe said.

(ANZ) will incorporate fuel surcharges into all fares from March 30 as a lure for travel agents to book clients on (ANZ). The practice of excluding surcharges, which have been substantial, has caused significant rifts between travel agents and airlines around the globe. (ANZ) General Manager Australia, John Harrison said he expects the decision to have a "positive effect" on sales. "Apart from the benefits of simplicity and transparency, (ANZ) commissions will now be calculated using the fuel inclusive level, providing improved earnings ability when selling (ANZ)," he said. "This change will make (ANZ) fares fully inclusive."

April 2009: Air New Zealand (ANZ) carried 1.2 million passengers in March, down -7.6% year-over-year, as (RPK)s traffic dropped -13.3% to 2.59 billion. Capacity fell -10.2% to 3.33 billion (ASK)s and load factor was down -2.8 points to 77.7% LF. Yield climbed +8.3%, rising just +3.2% excluding foreign exchange fluctuations.

(ANZ) named General Manager Direct Sales, Sarah Williamson as General Manager Mount Cook Airline.

(ANZ) is doubling the number of premium economy seats on its 777-200ER fleet, with the first of eight airplanes reentering service this week after being refitted by the carrier's Technical Operations division in Auckland. Work on the 777s will be completed in mid-June, with the number of premium economy seats doubling to 36. The change will result in an additional 72,000 Pacific Premium Economy (PPE) seats on its long-haul network annually.

General Manager International Airline, Ed Sims said (PPE) "has been hugely popular since its introduction in 2005." He claimed that (ANZ) flies farther than any airline in the world and that "despite the challenging economic environment, long-haul customers value the experience and are happy to pay more for the superior legroom, personal space and business class-style service." At the same time (ANZ) has added more legroom, with seat pitch increased to 41 inches from 38. It also added a new self-service bar area for customers traveling in premium cabins. Passengers in premium economy are offered business class (C) food, beverages and amenities.

The upgrade is the third in two years, with (ANZ) twice increasing the number of premium economy seats available on its 747-400s, now up to 39. The new 777-200ER seating configuration will comprise 26 business class (C) seats, 36 in premium economy and 242 in economy (Y) (down from the current 269).

(ANZ) flight attendants (CA) working at its "Zeal320" subsidiary and represented by the Engineering, Printing & Manufacturing Union (EPMU) voted to strike for four days beginning May 7 in a "move toward pay parity with other (ANZ) cabin crew (CA)." Zeal320 was created to operate (ANZ)'s A320s on trans-Tasman, Pacific and select domestic flights. The work action will involve 240 cabin staff (CA) and may include an additional four-day strike starting May 11. "The only people who are employed by Zeal320 are these flight attendants (CA) because the company exists solely to exclude them from the terms and conditions other crew enjoy. Even their managers are directly employed by (ANZ)," (EPMU) National Secretary, Andrew Little said. "It's an unethical use of corporate legal structures to deprive these workers of decent conditions." (EPMU) said negotiations with (ANZ) have been ongoing for seven months. (ANZ) accused the union of walking out of mediation and said it is "putting in jeopardy pay increases worth thousands of dollars for its members." It warned that it has "a large number of fully qualified" flight attendants (CA) ready to fill in for strikers, whom it claimed are earning more than competitors' equivalents on trans-Tasman routes.

(ANZ) said it will lock out Zeal320 flight attendants (CA) represented by the (EPMU), who voted to strike for four days beginning May 7. "(ANZ) will not be held to ransom by a union who is not interested in coming back to the mediation table and working out a deal," Group General Manager Short Haul Airlines, Bruce Parton said. (ANZ) said it has around 100 trained employees ready to work on Zeal320's trans-Tasman and Pacific flights and said it issued the lockout notice in order to avoid any potential disruptions created by the strike threat. Parton said (ANZ) offered the (EPMU) a "nearly +4%" increase in base pay and an "almost +8%" rise in allowances.

May 2009: Air New Zealand (ANZ) revealed the results of its December 29, 747-400 bio-fuel test flight at the Eco-Aviation conference presented by (ATW) and Leeham Company in Washington, saying that data gathered from the 2-hour flight show that a 50/50 blend of jatropha-based fuel and standard jet fuel could reduce fuel burn by -1.2% and carbon dioxide emissions by -60% to -75% on an average 12-hour 747 flight. (ANZ) earlier had stated that there were no operational problems during the test flight from Auckland that used the fuel blend to power one of the airplane's Rolls-Royce (RRC) (RB211)s. But it said its analysis of scientific data gathered during the flight revealed a performance that was "better than we expected." Extrapolating data from the flight, (ANZ) believes a 12-hour 747 flight powered by the fuel blend would yield fuel savings of -1.43 tons and a CO2 emissions reduction of -4.5 tons compared to a similar flight powered today by traditional jet fuel. The test flight was operated in conjunction with Boeing (TBC), Rolls-Royce (RRC) and Honeywell (SGC).

Despite the strong results, ANZ General Manager Operations & Chief Pilot, Dave Morgan cautioned that there is no imminent "silver bullet" regarding bio-fuel and that there may be too much "hype." He explained that the test flight was just part of a long process: "The reason we did the flight was to make a contribution to the database in order to [make progress toward getting] this fuel certified. In the short term, it's really about getting a second-generation bio-fuel certified. In the long term, we believe it could be a fuel alternative for (ANZ)."

(ANZ) has a goal of using 10% alternative fuel (covering all fuel needs, including ground operations) by 2013. Morgan said jatropha may not be the most ideal feedstock for (ANZ) because it cannot grow in New Zealand.

Commercial Aviation Alternative Fuels Initiative Executive Director, Richard Altman told the Eco-Aviation conference that developing sustainable feedstocks for bio-fuels is critical but warned that serious challenges lie ahead. "We need investors," he said, adding: "What's it going to take to get a farmer to plant camelina instead of what he's planting now? . . . We need to develop an entirely new fuel dynamic." Altman said much of the "hype" about bio-fuels is well-founded. "The expectations may be too high for certain feedstocks, but in terms of moving to bio-fuel [to power commercial flights], there's not too much hype." Algae, for example, has been called the "Holy Grail" of alternative fuel offerings by Boeing (TBC) and others, but he cautioned that while it "looks good on paper . . . we really don't know much about it. We don't know what the manufacturing process [for turning it into fuel] is."

Airlines are not sitting idly waiting for major new (ATM) programs such as the USA (FAA)'s NextGen and are investing in and employing new technology to reduce fuel burn and emissions, industry leaders Air New Zealand (ANZ) and Southwest Airlines (SWA) said. (ANZ) General Manager Operations & Chief Pilot, David Morgan offered a report at the "Eco-Aviation" conference sponsored by Air Transport World (ATW) and Leeham Company in Washington on the carrier's participation in the ASPIRE 1 (Asia and South Pacific Initiative to Reduce Emissions) program last fall. The flight, which took place with a 777-200ER from Auckland to San Francisco, consumed -4,600 liters less fuel than normal using a number of strategies designed to minimize usage that resulted in a 12-ton reduction in CO2 emissions. (ASPIRE) is a joint initiative among the USA (FAA), Airways New Zealand and Airservices Australia.

"The existing technologies are more than adequate to drive efficiencies in emissions," Morgan said. "We've shared performance metrics to prove it could work." Other initiatives, such as minimal use of APU ground power and just-in-time refueling of airplanes within 15 minutes of departure, also are being employed.

June 2009: Air New Zealand (ANZ) said May yield rose +7.1% year-over-year, due largely to foreign exchange gains. Excluding those, yield climbed +1.7%. It flew 1.72 billion (RPK)s traffic during the month, down -11.4%, against a -13.9% decline in capacity to 2.28 billion (ASK)s. Load factor rose -2.2 points to 75.7% LF.

(ANZ) will cut capacity an additional -3% in the fiscal year ending June 30, 2010, and said it has "entered into discussions with unions on how to minimize any potential job losses . . . A review of crewing requirements to meet existing customer demand has identified a potential surplus of up to 40 cabin crew (CA) and pilots (FC) in regional airline and domestic jet operations."

(ANZ) CEO, Rob Fyfe told "Bloomberg News" that forward bookings are down -10% and (ANZ) is "not expecting any pickup in demand through the coming 12 months." It recently announced plans to cut capacity by an additional -3% in the fiscal year starting July 1, leaving it in line with the expected decline in demand, he told the news service.

(ANZ) said its first 747-400 made its final flight and will be dismantled for parts in the USA. The airplane was delivered in December 1989 and flew more than >88,300 hours.

July 2009: Air New Zealand (ANZ) flew 2.32 billion (RPK)s traffic in June, down -10.1% year-over-year, against a -12.3% cut in capacity to 2.92 billion (ASK)s. Load factor rose +2 points to 79.5% LF.

(ANZ) will operate seasonal thrice-weekly, Brisbane - Queenstown service from mid-December to the end of January.

New Zealand's national airline has adopted a cheeky way to encourage passengers to watch its in-flight safety video: The cabin crew's uniforms are nothing but body paint. The "Bare Essentials of Safety," screening in the cabins of planes flying Air New Zealand (ANZ)'s main domestic routes, has gone viral online. It had 1.2 million YouTube views, four days after it was launched. In the video, three cabin staff (CA) and a pilot (FC), all in full body paint applied to look like their uniforms, talk viewers through the aircraft's safety procedures. A demonstration seat belt, life jacket and arm rests are strategically positioned during the 3 1/2-minute video to protect the cabin crew's . . . discretion. Passengers are shown ogling, mostly in appreciation.

The body paint idea is also being used in a series of television advertisements in New Zealand for (ANZ), which include the promise: "At (ANZ), our fares have nothing to hide." One ad even features CEO, Rob Fyfe in body paint. "We think in tough times there's a premium for making people smile, and it gives the opportunity to stand out in a crowd," (ANZ)'s Marketing General Manager, Steve Bayliss told "The Associated Press."

Each crew member spent about three hours having the body paint applied. The video needed "a little bit of a hint, but every frame has to be as modest as anything you see at the local swimming pool or the beach in summer," Bayliss said. After all, the people in the ads are not models or actors but work colleagues, he said.

Canada announced "open skies" agreements with South Korea and New Zealand.


August 2009: Air New Zealand (ANZ) said its quick decision to remove capacity in response to the economic downturn, along with its fuel hedges, were responsible for better-than-expected results in the fiscal year ended June 30, including a +NZ$21 million/+$14.4 million) profit that represented a -90% drop from the +NZ$218 million earned the prior year. The net result reflects possible hedging losses over the next year. Normalized earnings, which exclude net gains or losses on nonhedge-accounted and ineffective derivatives in other financial periods, were more impressive. By that standard, (ANZ) reported a +NZ$118 million full-year profit, down -19% from NZ$146 million achieved on the same basis a year earlier.

Operating revenue dipped -1% to NZ$4.61 billion, with passenger turnover falling -NZ$74 million on a -7.6% drop in (RPK)s traffic to 27.11 billion. Capacity was cut -7.2% to 34.32 billion (ASK)s and load factor slipped -0.3 point to 79% LF. Passenger numbers declined -6.1% to 12.4 million, while yield rose +6.2% to NZ13.8 cents. That increase was fueled by a +12.1% surge in international yield to NZ10.6 cents.

Chairman, John Palmer said the result position the carrier "as one of the top airline performers globally, but it falls short of delivering shareholders an appropriate commercial return," adding that the profit "was underpinned by management's decision to move rapidly ahead of competitors to reduce capacity at the first signs of waning demand and an ability to continue to invest and innovate with confidence."

CEO, Rob Fyfe promised that (ANZ) will "continue to invest in new products, technology and customer service while keeping a strong focus on reducing costs and becoming even more efficient. No area of the business will be immune from change as we start to roll out exciting new developments in our domestic, Tasman and long-haul airlines and capitalize on opportunities for our subsidiary businesses."

He said that while some certainty is provided by hedge positions relating to foreign exchange and fuel prices, demand remains difficult to predict. Both Fyfe and Palmer described the current year as challenging while pointing to some early indicators that the slump in demand may have bottomed out. "It would be naive to think that there won't be bumps on the road to economic recovery," Fyfe warned. "Yields remain under significant pressure, fuel prices have resumed an upward trend and we are unlikely to achieve the same level of net hedging gains."

(ANZ) will launch twice-weekly, Rotorua - Sydney service December 12 aboard a 152-seat A320.

Australia and New Zealand are expected to move toward common air travel borders this month, cutting red tape and airfares.
New Zealand Prime Minister, John Keys and Australian Prime Minister, Kevin Rudd are expected to announce the streamlining of arrivals and departures that may see trans-Tasman flights operating from domestic terminals and elimination of departure taxes and duplication of quarantine, customs and security checks.

The changes are expected to boost tourism between the two countries, which already see approximately 1 million visitors cross the Tasman each year in both directions. Under the proposals, passengers leaving Australia for New Zealand would not pay the A$47/$39.10 passenger movement charge and the countries would recognize each other's security, immigration and quarantine checks in a similar way to members of the European Union (EU).

Jetstar Airways (IMU) CEO, Bruce Buchanan said previously that common border arrangements could reduce fares by at least -30% on services from the east coast of Australia to New Zealand, where taxes and charges make up a large part of the fare. Tourism Australia, however, suggests a -20% reduction is more likely.

It is understood that passports still will be required and passengers will make a one-stop customs and immigration check at the departing airport in a similar way to the USA/Canada arrangement implemented six years ago.

Air New Zealand (ANZ) strongly denied a report from Australia's "Fairfax Media" that (ANZ) staff, including Deputy CEO, Norm Thompson, colluded with Emirates (EAD) on fixing cargo rates between Australia and New Zealand. The Fairfax report, citing court documents presented by the Australian Competition and Consumer Commission (ACCC) in relation to its ongoing investigation of Emirates (EAD), alleged that Thompson and Emirates SkyCargo (EMC) Senior VP, Ram Menen discussed prices to be charged in October 2003.

However, in a letter to staff, (ANZ) CEO, Rob Fyfe said the discussions that started in September 2003 related to (ANZ)'s interest in securing additional lift across the Tasman Sea because it was replacing 767-300s with A320s and needed more capacity. "This was going to create a serious shortage of (ANZ) cargo capacity as we replaced wide body airplanes. At about the same time, (EAD) had just entered the Tasman market bringing massive overcapacity of passenger and cargo services [with 777s and A340s], making them a logical source of extra wide body capacity," Fyfe told staff. "This was the context of Norm's [Thompson] discussions with (EAD), which after some negotiation resulted in a cargo Special Prorate Agreement; a very standard and entirely legal agreement in the airline industry. It records wholesale rates airlines will charge to each other. It does not reflect any agreement on prices to be charged to cargo customers."

The (ACCC) has filed proceedings against (EAD), charging it with attempting to fix cargo prices and to forge an illegal agreement with (ANZ). In those proceedings, the regulator refers to correspondence with Norm Thompson.

Fyfe added that (ANZ) "has never condoned anti-competitive conduct and has cooperated with authorities throughout their investigations. I share the same view that cartels are insidious and anti-competitive and that price-fixing activities should be prosecuted by the appropriate authorities."

The (ACCC) has not filed any proceedings alleging wrongdoing by (ANZ) or Thompson. The New Zealand Commerce Commission looked at the same correspondence and agreement last year and did not proceed. (EAD) has refuted the allegations levied by the (ACCC) and said it will mount a committed defense.

September 2009: Air New Zealand (ANZ) said flight attendants represented by the Engineering, Printing and Manufacturing Union working on A320s operated by (ANZ)'s Zeal320 transTasman subsidiary have ratified a new labor agreement.

New Zealand's environmental court has given the go ahead for the redevelopment of a privately owned secondary airport at Wellington, and make it suitable for scheduled commercial flights. A coalition of residents who live near Paraparaumu Airport opposed the NZ$450 million/$304 million redevelopment plan, saying that it would cost more than >NZ$10 million to minimize the effects of noise pollution in the area.

The country's Environment Court ruled against them, and asked the airport's owners to make some minor changes to their 2008 redevelopment plan to address the noise concerns. Once the changes are made, they can proceed with the work, it added. "It is especially pleasing that the court has chosen to make only minor changes to the plans approved by the [district] council in 2008," says Paraparaumu Airport Chairman, John Goulter, who adds that the proposed changes will be submitted this week. "The main priority now is to establish a terminal and reseal the main runway, including some levelling work, as a precursor to (ANZ) commencing regular flights to and from Paraparaumu."

Paraparaumu was the region's main airport, until Wellington International Airport opened in 1959. It mainly handles general aviation traffic. The redevelopment plan includes extending the main 1,350m/4,430ft-long runway, shifting and shortening the east-west runway, and creating an industrial park on the 127h site.

The company hopes that (ANZ) will begin flights to and from Auckland and Christchurch by the end of 2010. (ANZ) is likely to base some Bombardier DHC-8-Q300 airplanes at the airport, once the work is completed.

MTU Maintenance Hannover, an affiliate of MTU Aero Engines, said it secured engine maintenance contracts worth approximately €50 million/$73.6 million "over the past few weeks." The largest deal is with Air New Zealand (ANZ) covering Maintenance Repair & Overhaul (MRO) on 38 (CF6-80C2)s used to power its 747-400s.

October 2009: Air New Zealand (ANZ) flew 2.49 billion (RPK)s traffic in September, down -6.8% year-over-year, against a -11.9% cut in capacity to 3.03 billion (ASK)s. Load factor rose +4.5 points to 82.3% LF.

(ANZ) and South African Airways (SAA) reached a code share deal under which (SAA) will place its code on (ANZ)'s daily, Auckland - Perth flight, and (ANZ) will put its code on (SAA)'s daily, Perth - Johannesburg service. The agreement also covers internal flights to principal cities.

(ANZ) simplified its fare structure to comprise two options rather than three and cut average fares by -10%, with cheapest domestic tariffs falling by up to -23%. The largest cuts are in regional markets where (ANZ) faces no competition rather than in cities where Qantas (QAN) subsidiary, Jetstar Airways (IMU) operates domestic flights. (ANZ)'s fare structure now consists of Smart Saver and Flexi Plus fares.

An (ANZ) 777-300ER was deployed to ferry supplies to Samoa to help with tsunami recovery efforts. General Manager Airline Operations, David Morgan said the airplane left for Samoa stocked with several hundred blankets, more than >1,000 t-shirts and basic amenity packs with items such as toothbrushes and toothpaste.

(ANZ) CEO, Rob Fyfe lashed out at governments for their "money-grabbing" emissions taxes and criticized (ICAO) for "its paralysis" on forging an agreement on limiting emissions from aviation. Speaking at the "Greener Skies" conference in Hong Kong, Fyfe, who runs a carrier that is considered to be at the forefront of the airline industry in cutting CO2 emissions said, "the inconvenient truth is that we continue to invest enormous resource the world over in debating climate change regulatory frameworks and yet we are failing to take even the most basic steps to actually reduce emissions." He warned, "These policy discussions and the hand-wringing over agreeing emission reduction targets are interminable and they are distracting us from the far more important focus of taking action. This is simply a travesty."

Fyfe said the United Nations (UN) climate change discussions amplify all that is wrong with global politics: "Whether under the Framework Convention on Climate Change, (ICAO) or elsewhere, it's the same procrastination; multiple conferences of many thousands; turgid presentations and inequitable albeit politically acceptable backroom deals determining the shape of unwieldy global agreements at a glacial pace." He pleaded with politicians and airlines to "stop protecting our respective butts in the endless policy debates and start focusing, globally, on concerted action. Just imagine what we could achieve if a tenth of the global bank bailout funds from the past 12 months were directed towards the environment instead."

He added that it should be irrelevant whether international aviation emissions are addressed under a (UNFCCC) umbrella or under (ICAO), stating that action is much more important. While slamming the (EU) for its "money-grabbing imposition of its (ETS)," Fyfe applauded the body for at least taking action. But he blasted the UK for its Air Passenger Duty. "It purports to be environmental in nature but has no incentive for carriers to reduce environmental effects," he said. "It can only be described as a money grab."

Japan Airlines (JAL) conducted an (ASPIRE) (Asia and South Pacific Initiative to Reduce Emissions) flight on October 10 - 11. (ASPIRE) is a joint venture among USA (FAA), Air services Australia and Airways New Zealand. Three previous (ASPIRE) flights were conducted by United Airlines (UAL), Qantas (QAN) and Air New Zealand (ANZ).

ASPIRE flights use a host of optimized operational procedures and Air Traffic Control (ATC) routings, including tailored arrivals, to save time and fuel. "This is an important milestone in our collective effort to lessen aviation's environmental footprint," said (FAA) Administrator, Randy Babbitt, who signed the agreement along with Japanese Civil Aviation Bureau Director General, Ryuhei Maeda.

The October 10 - 11 747-400 flight was operated by (JAL) subsidiary JALways (JAI) on a scheduled trip from Honolulu to Osaka. Although specific results of the flight have not been disclosed, (JAL) previously had announced that it aimed to reduce fuel burn by -9,421 lbs and carbon dioxide emissions by -28,969 lbs through a variety of means: A precise estimate of fuel required for the flight, lighter cargo containers, reducing the weight of items loaded on board, including cabin attendants (CA)'s carry-on baggage, maximizing the use of ground electricity instead of the Auxiliary Power Unit (APU), engine washing, two-engine taxi, changing the runways for takeoff and landing to shorten taxi distance, faster climb to optimum cruise altitude, utilizing user preferred route, Dynamic Airborne Rerouting (DARPS), delayed flap and gear approach, and reduced reverse thrust.

(ANZ) conducted the first ASPIRE flight on September 12, 2008, from Auckland to San Francisco aboard a 777, saving -7,700 lbs of fuel and -27,700 lbs of CO2. (ANZ) General Manager Operations & Chief Pilot, Dave Morgan said almost all of (ANZ)'s flights to San Francisco are now conducted as ASPIRE flights. (ANZ) will commence regular ASPIRE flights to Los Angeles shortly, he said.

BMB Fuel Services of Canada said (ANZ) has implemented its Aviation Fuel Decision Support software under a multiyear agreement. Tool monitors fuel usage and tracks an airline's fuel saving initiatives, (ANZ) said.

Qantas (QAN) named Air New Zealand (ANZ) General Manager Technical Operations, Chris Nassenstein as its new Executive General Manager Qantas Engineering, effective next February.

(ANZ) said it will replace its 15 leased 737-300s with an order for 14 A320s plus 11 purchase rights. (ANZ) said the first A320 is scheduled to be delivered in January 2011, with the remainder arriving through 2015. They will be powered by (IAE) (V2500)s. (ANZ) currently operates 12 A320s. "This is a very good time to buy airplanes. The industry is at the bottom of a deep cycle so demand for airplanes is limited, creating favorable conditions for buyers with strong balance sheets like (ANZ)," Group General Manager Short Haul Airline, Bruce Parton said.

November 2009: Air New Zealand (ANZ) launched the Airbus (EDS) "sharklet" program with its recent order for 14 A320s. Airbus COO Customers, John Leahy unveiled at the Dubai Air Show the 8-ft-high sharklets for new-build A320s that will give the airplane a -3.5% reduction in fuel burn and an annual -700-tonne CO2 saving over current models. The first A320 fitted with the sharklets will be delivered to (ANZ) in 2012 to be followed by A321 and A319 models in 2013.

(ANZ) CEO, Rob Fyfe said the sharklet program was a significant factor in (ANZ)'s recent order for A320s as part of its drive to be "the world's most environmentally friendly airline."

List price for a shipset of sharklets is $900,000, which can be recovered with three years of fuel savings at current prices, (EDS) said. Weight of the devices is 200 kg, although there is a neutral weight effect due to other airplane weight savings. They give the A320 another 110 nm in range, 500 kg of payload and improved takeoff performance from short or high-altitude runways, according to the manufacturer.

Leahy said that from Quito in Ecuador, which is at 9,200 ft elevation, a sharklet-fitted A320 would have a 2-tonne increase in takeoff performance that would equal +20 more passengers with an overall -10% reduction in fuel burn per passenger. He also noted that the devices would result in lower engine maintenance costs and increased climb rate by up to "400 nm earlier to 39,000 ft."

Airbus (EDS) is looking at a retrofit package for the existing A320 family fleet. "This is not a simple refit as it requires wing box rework, but we are talking to Aviation Partners (APB) about a refit program," he said. The sharklet, however, is an Airbus (EDS) design and not related to Aviation Partners (AVP), which developed the blended winglets for various Boeing (TBC) airplanes.


December 2009: Air New Zealand (ANZ) will operate weekly, Sydney - Rarotonga flights in July - October 2010 aboard a 767-300.

737-3U3 (28742), returned to lessor Heller, and leased to WebJet (WEB) as (PR-WJQ).

January 2010: Penton Media’s Air Transport World (ATW), the leading monthly magazine covering the global airline industry, announced the selection of Air New Zealand as its "Airline of the Year" for 2010. (ANZ) is being honored for its superb commitment to safety and operational excellence, typified by the use of Performance Based Navigation (PBN) cockpit technology at weather and terrain challenged destinations, and for its superb and groundbreaking customer service that combines high-tech, passenger-friendly Information Technology (IT) systems with high-touch and caring staff.

The (ATW) editors further cited (ANZ)'s sterling financial performance and fiscal management during one of the most turbulent periods in aviation history. They also were strongly impressed with the airline's leadership role in addressing environmental challenges facing the industry, including conducting the world's first sustainable biofuel flight.

(ANZ) confirmed that it has joined Qantas (QAN) in withdrawing from the Association of Asia Pacific Airlines (AAPA). (ANZ) chose not renew its membership late last year. Neither (ANZ) nor (QAN) sent a representative to (AAPA)'s Assembly of Presidents in Singapore in late November.

Responding to (QAN)'s decision last week to leave the group, (AAPA) Director General, Andrew Herdman said that "all airlines are under severe pressure, given the impact of the global economic downturn. Nevertheless, the benefits of cooperation and working together on key industry policy issues have never been more evident. Whether it concerns safety, security, environment policy or customer service standards, these are all important to the passengers who fly every day." However, both (QAN) and (ANZ) are posting solid profits and have weathered the economic downturn in excellent shape.

Herdman said the (AAPA) will continue to work on behalf of all members of the Asia/Pacific aviation community "to promote the successful development of the industry." He said the organization "engages with a wide range of industry stakeholders and articulates Asia/Pacific perspectives on global aviation policy issues. Membership in the (AAPA) remains open to all international airlines based in the region, regardless of business model."

(ANZ) unveiled new economy (Y) and premium economy seats as part of a major cabin makeover. The economy (Y) seat features a unique swing-up, fully padded section that converts a triple seat into a bed. A single passenger can buy a set of three seats for little more than the cost of a premium economy seat. General Manager International Airline, Ed Sims said that the new product "gives control back to the passenger."

The triple seats initially will be available in the front of the economy (Y) section of (ANZ)'s 777-300ERs scheduled to begin arriving in November. The new product complements its current sale of vacant economy (Y) seats at deeply discounted rates on check-in, which has proven extremely popular. Recaro is building the seats, which will be available to other airlines under license from (ANZ). The new premium economy product, to be built by Contour, will feature sets of two seats with movable padded dividers. The seats are slightly angled to enhance privacy and also will be licensed by (ANZ), which is revamping service delivery, the galley layout and the In-Flight Entertainment (IFE) system as well.

(ANZ) CEO, Rob Fyfe said that the continuing uncertainty of the 787 delivery schedule is a more pressing problem for (ANZ) than the global recession and industry downturn. Fyfe said that (ANZ) has had to hold up key expansion plans "because only the 787 is suited to the new routes." It originally was scheduled to take delivery of the first of 16 787s this year but the current schedule now calls for late 2013 with no firm date established. The 787 Dreamliner flew for the first time last month.

"We have had to substantially modify our plans and we may get locked out of a new route if a competitor launches services first," he said, lamenting the delay to an airplane he claimed would be a recession-beater. "I wish we had them now. They would be the perfect tool to weather the downturn. We could have swapped out a 747 for a 787."
Fyfe said that no airline prefers to operate a route less frequently than daily and that the 787 "would have helped airlines a great deal" during the recession by holding down capacity.

February 2010: BOC Aviation (SIL) inked a deal to lease two A320-200s to Air New Zealand (ANZ). The airplanes are scheduled for delivery in the fourth quarter of 2011.

March 2010: Air New Zealand (ANZ) lifted its net profit for the six months to December 31, 2009, to +NZ$56 million/+$38.6 million, more than double the +NZ$24 million reported in the year-ago semester, despite fuel hedge losses and a significant decline in revenue.

Turnover fell -15% to NZ$2.1 billion but expenditure was down -18.9% to NZ$1.67 billion. Traffic (RPK)s decreased -4.6% to 13.34 billion, while passenger numbers were level at 6.3 million, reflecting the public's desire to travel, albeit shorter distances. Load factor rose +3 points to 81.6% LF as capacity was cut -8% to 16.35 billion (ASK)s. Yield declined -9.7% to NZ$0.126.

"In very challenging conditions this is a good result," (ANZ) Chairman, John Palmer told media. "The fallout from the global financial crisis continued to make operating conditions extremely difficult. At the same time, fuel prices have returned to more stable levels following unprecedented volatility in the 2009 financial year."

CEO, Rob Fyfe told the press in Auckland, "We worked hard to adapt the business to reflect the lower revenue base. As a result, we achieved an 11% reduction in non-fuel operating costs, with all operating costs reduced." Air New Zealand was named Air Transport World (ATW) magazine's "2010 Airline of the Year."

Going forward, Fyfe said that innovation is key. "We have set out to create a culture that enables Air New Zealanders to have the confidence to think outside the square and to proactively and creatively pursue solutions. The next 12 months will be one of the most defining in (ANZ)'s history. Our competitors will be scrambling to catch up as we introduce a world-first long-haul experience, continue to evolve our trans-Tasman and Pacific Island operation and introduce more capacity into our domestic jet operation with the arrival of new A320 airplanes."

(ANZ) warned that while the trading environment has shown some recovery, demand and average fares remain significantly lower than in prior periods and that it expects a weaker, but still profitable, second half.

Air New Zealand (ANZ), Virgin Blue (VOZ), and Qantas (QAN), together with Boeing (TBC) and Australia's Defence Science & Technology Organization, commissioned a world-first study aiming to accelerate the development and commercialization of sustainable aviation fuel in the region. The initiative, which commences in Sydney, is being convened by the Australian and New Zealand group of the Sustainable Aviation Fuel Users Group and will be carried out by the Commonwealth Scientific Industrial Research Organization, Australia's peak scientific body. The study will build on international developments but focus on the unique advantages and challenges. In particular it will look at barriers to a commercial and scalable sustainable aviation fuels industry.

Air New Zealand (ANZ) will increase capacity on its domestic jet network by +10.5% beginning next January owing to growing demand and the expected jump in tourism prompted by the "Rugby World Cup" in September to October 2011, during which (ANZ) will raise capacity +26%. It will begin taking delivery next year of its A320s, which boast 171 seats compared to the 133 on its 737s, and also will extend the lease on one 737 by eight months.

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April 2010: Air New Zealand (ANZ) confirmed it is in discussions with Australia's Virgin Blue (VOZ) regarding a transTasman alliance. (ANZ) said that the airlines "have been in ongoing discussions for several months but no agreement has been reached." The Tasman covers all routes between Australia and New Zealand and currently is served by 11 airlines operating everything from A380s to 737s. The potential alliance is similar to an attempt by Qantas (QAN) and (ANZ) to create a joint transTasman airline in 2003, which failed after competition regulators killed the deal. A potential (ANZ) - Virgin Blue (VOZ) alliance likely would not be as far-reaching, stopping short of creating a new airline. According to the Centre for Asia Pacific Aviation (CAPA), (ANZ) has a 38% market share on Tasman routes, followed by (QAN) with 21%, Virgin Blue regional international arm, Pacific Blue (PBI) with 18%, Jetstar (IMU) with 11%, Emirates (EAD) with 9%, and other airlines sharing 3%.

Later, (ANZ) and the Virgin Blue Airlines (VOZ) Group announced their intention to seek regulatory approval to create an alliance on transTasman routes. Both airlines, which have had legal teams working on the alliance proposal for some months, said applications will be filed with the Australian Competition and Consumer Commission and the New Zealand Ministry of Transport shortly. Regulators are expected to take six months to review the applications.

(VOZ) CEO, Brett Godfrey and (ANZ) CEO, Rob Fyfe told media that the alliance would deliver transTasman passengers cheaper airfares, increased frequency, better connections, loyalty scheme reciprocity and expanded lounge access. "We believe we are well matched and the timing is good and incoming CEO, John Borghetti thoroughly supports this strategy,” he added. Borghetti will take the reins from founding CEO, Godfrey this month.

The proposed alliance will connect regional centers in Australia and New Zealand but only as part of a Tasman journey and does not include domestic-only travel in either Australia or New Zealand. Fyfe added that "the agreement is not a signal of intention by (ANZ) or (VOZ) to take a shareholding in the other." He said the number of seats flown on the Tasman by the alliance carriers would grow more quickly than without the alliance. "By combining our New Zealand customer base with the strong market presence that Virgin Blue (VOZ) has in Australia, additional flights and new routes will make sense much more quickly," he explained.

May 2010: Air New Zealand (ANZ) is increasing its international and domestic capacity by +4.9% and +3.8%, respectively, for its upcoming northern winter 2010 schedule. San Francisco will be up +17.9%, Vancouver +7.9%, and Los Angeles +4%. Capacity on Japan routes will increase by +6.7% while UK and China services remain unchanged. Deputy CEO, Norm Thompson said the extra capacity is being added as (ANZ) starts to see a recovery in air travel, albeit one that is still well below the highs of 2008. "We are seeing a slow but definite sign of a recovery from the reduction in travel in 2009; however, these are still -13% below levels in 2008," he said. (ANZ) also is experiencing a lift in demand on regional international routes, with service into Queenstown a standout. Capacity to that destination is "up +88% over the same time a year ago," Thompson said. "Additional frequencies from Melbourne, Sydney and Brisbane to Queenstown reflect the growth in the region as a summer destination for Australians." (ANZ) domestic capacity is up +3.8% across the network.

(ANZ) achieved a world first for Airbus (EDS), using Required Navigation Performance (RNP) level 0.1 for Sydney - Rotorua service on May 22 despite cloud cover down to just 400 ft. The (RNP) 0.1 value is the lowest level approved by Airbus (EDS) and authority to operate below (RNP) 0.3 had just been granted to (ANZ) the previous day. Without the technology, Flight NZ978 would have had to divert to Auckland, causing significant disruption to the inbound passengers and also to the outbound passengers scheduled to depart from Rotorua to Sydney the same afternoon.

(ANZ) pioneered (RNP) for the A320, initially to get into Queenstown, which is surrounded by mountains. According to Performance Based Navigation Project Manager, Philip Kirk, (RNP) was introduced on six of (ANZ)'s 737s three years ago for use into Queenstown, with the initiative so successful that it was extended to the airline's A320s, making (ANZ) the first carrier in the world to have an entire A320 fleet (RNP)-enabled. "(RNP) has proved to be a huge benefit to customers and the airline with excellent reliability into Queenstown through some very challenging weather conditions over the past few years," Kirk said.

June 2010: Air New Zealand (ANZ) operated 1.76 billion (RPK)s traffic in May, up +1.8% year-over-year, against a -0.7% cut in capacity to 2.26 billion (ASK)s. Load factor rose +1.9 points to 77.6% LF.

(ANZ) will equip its 777-300ERs with mobile phone and data capability in partnership with Aeromobile and Panasonic Avionics, beginning with the first delivery in November. (ANZ) passengers will be able to send and receive e-mails and text messages during their flights, as well as access the Internet from netbooks and laptops, but (ANZ) does not currently plan to enable voice calls on board and will request that passengers keep their phones on "silent" mode. "Customers will be billed by their own mobile service provider as with any other international roaming plan," (ANZ) said, adding that mobile phone providers will be confirming pricing "in the coming months."

(ANZ) unveiled a new self-service kiosk for passengers flying between New Zealand and Australia that aims to cut check-in times by -50%. Passengers scan their machine-readable passports at the kiosk and are issued a boarding pass and bag tags if necessary. Customers checking bags then take them to the bag drop area, where (ANZ) staff scan the piece of luggage and check the passengers' IDs. (ANZ) said it will introduce the new kiosks progressively at its Wellington, Queenstown and Christchurch international check-in areas over the next nine months.

July 2010: As the New Zealand flag carrier, Air New Zealand (ANZ) focuses on Australia and the South Pacific, with jet airplane services to over 25 domestric, six Australian and more than a dozen Pacific Island destinations, together with long haul flights to Honolulu, London Los Angeles, Osaka, Shanghai, Tokyo, and Vancouver. Domestic services link Auckland with four major cities and connect with Air New Zealand link services to more than >20 others operated by Air New Zealand National and Link subsidiaries, Air Nelson, Eagle Airways, and Mount Cook Airlines.

10,829 employees (including 834 Flight Crew (FC); 1,619 Cabin Attendants (CA); & 2,108 Maintenance Technicians (MT).

(IATA) Code: NZ - 086. (ICAO) Code: ANZ (Callsign - NEW ZEALAND).

Parent organization/shareholders: New Zealand government (75.8%); & publicly held (24.2%).

Airline subsidiaries/shareholdings: Air Nelson (100%); Eagle Airways (100%); Air Pacific (APC) (3.67%); & Mount Cook Airlines (100%).

Alliances: Star Alliance (SAL); AirCalin (NCI); Air China (BEJ); Air Pacific (APC); Air Raratonga; Air Tahiti Nui; Air Vanuatu (VAN);(EVA) Air; Japan Airlines International (JAL); Mexican (CMA); & Shanghai Airlines (SHA).

Main Base: Auckland International airport (AKL).

Hub: Los Angeles International airport (LAX).

Domestic, Scheduled Destinations: Auckland; Christchurch; Dunedin; Queenstown; Rotorua; & Wellington.

International, Scheduled Destinations: Apia; Brisbane; Cairns; Hong Kong; Honolulu; London; Los Angeles; Melbourne; Nadi; Nagoya; Norfolk Island; Noumea; Nuku'alofa; Osaka; Papeete; Perth; Raratonga; San Francisco; Singapore; Sydney; & Tokyo.

August 2010: Air New Zealand (ANZ) flew 2.48 billion (RPK)s traffic in July, up +6.8% on the year-ago month, as capacity rose +1.7% to 2.95 billion (ASK)s. Load factor rose +4 points to 84.1% LF.

(ANZ) credited "innovation and performance improvement" for a near-quadrupling of its net income to +NZ$82 million/+$57.4 million for its fiscal year ended June 30 compared to a +NZ$21 million profit in the prior year.

The result was achieved despite a -12.9% year-over-year decline in revenue to NZ$4.05 billion. But efficiency gains, along with lower fuel prices, resulted in a -14.8% reduction in costs to NZ$3.34 billion and operating income was +NZ$151 million, nearly double an operating profit of +NZ$78 million in the prior year.

(ANZ) Chairman, John Palmer said, "We continue to be more profitable than most of our peers on a comparable basis, with this financial performance reflecting the continued innovation and performance improvement that has seen us recognized with several major global awards including (ATW) magazine's "2010 Airline of the Year." The investments we are making in product enhancements, improved service and process efficiencies have driven customer preference, which in turn creates market share and margin premiums, even in the current difficult times."

CEO, Rob Fyfe said (ANZ)'s "wide range of business initiatives underway [include] significant capacity growth over the coming months [that will] further strengthen our position in the marketplace." (ANZ) reduced capacity in Fiscal Year (FY) 2009 to 2010, reporting a -8% year-over-year decline in capacity (ASK)s to 31.57 billion. Traffic (RPK)s dropped -4.7% to 25.82 billion and load factor was 81.8% LF, up +2.8 points. Yield lowered -7.1% to NZ$0.128.

(ANZ) is planning to increase capacity in 2011 across its network, particularly on domestic and transTasman routes, through the addition of new airplanes, configuration changes and increased utilization. It said it is optimistic that operating earnings will continue to improve through (FY) 2010 to 2011.

Fyfe noted that (ANZ) "awaits regulatory approval [for a code share agreement with Virgin Blue (VOZ)] on both sides of the Tasman to enable us to compete more effectively against the Qantas Group in the Australasian market."

September 2010: Australia’s main competition watchdog says it intends to deny a joint venture (JV) application by Virgin Blue (VOZ) and Air New Zealand (ANZ). The planned (JV) would have covered routes
between New Zealand and Australia. The draft ruling by the Australian Competition and Consumer Commission (ACCC) is the second regulatory blow in as many days for Virgin Blue (VOZ), after the USA Transportation Department issued a preliminary ruling denying antitrust immunity (ATI) for a joint venture (JV) with Delta Air Lines (DAL) on USA - Australia flights. “The (ACCC) considers that the [(ANZ) - (VOZ)] alliance is likely to reduce competition in the market for trans-Tasman air passenger services,” (ACCC) Chairman, Graeme Samuel says. The application had been strenuously opposed
by airports, which argued it would result in higher prices. (ANZ) says it is reviewing the draft decision, and expects to respond to the (ACCC)’s concerns “once they are identified.” The (ACCC) is accepting submissions through September 24.

(ANZ) has for many years been looking for ways to make its operations more viable in the hotly contested trans-Tasman market. In 2003, it tried to form an alliance with Qantas (QAN), but this was disallowed by New Zealand and Australian authorities. In its latest decision, the (ACCC) says Virgin Blue (VOZ) is “a significant competitor” to (ANZ) in this market. There are “a number of trans-Tasman routes where the alliance raises competition concerns.” These routes account for about a quarter of passenger traffic between the two countries, representing more than one million passengers a year.
The two airlines argued that a joint venture (JV) would allow them to compete more effectively against the (QAN) - Jetstar (IMU) combination. The (ACCC) admits that a (JV) would provide Virgin Blue (VOZ) and (ANZ) with “a broader and more integrated network.” However, it also notes it is “not convinced that this necessarily creates a dynamic in the trans-Tasman market that is fundamentally
more competitive than a scenario where (VOZ) and (ANZ) continue to operate independently and pursue their publicly stated aims to develop
their business models.”

Last year, the (ACCC) gave its blessing to the (JV) proposed by the Virgin Blue Group and (DAL), which are both new entrants in the USA - Australia market and have much smaller operations than the incumbents (QAN) and United Airlines (UAL). The (ACCC) says the (ANZ) proposal
warranted different treatment because it involves the number one and three competitors on trans-Tasman routes, and offers “substantially less significant connectivity benefits for consumers.”

(ANZ) is adding more than >9,500 seats per week across its regional network and main jet routes, significantly increasing capacity on its domestic operations. Key increases will include: Tauranga to Christchurch, up +120%; Invercargill to Wellington, up +63%; New Plymouth to Christchurch, up +20%; Palmerston North to Christchurch, up +11.3%; and Napier to Auckland, up +4.5%. According to (ANZ) Group General Manager Australasia, Bruce Parton, the additional capacity is being introduced as signs emerge of the anticipated recovery in demand for domestic travel within New Zealand.

"In response to customer feedback, the additional flights at peak times facilitate same-day travel for business (C) travelers, enabling them to maximize their time in Christchurch," Parton said. Capacity increases on services between Palmerston North and Auckland, Napier and Auckland, and Palmerston North and Christchurch will result from up-gauging the airplanes used on these routes from a 50-seat Bombardier DHC-8-Q300 to a 68-seat ATR airplane. Service changes and adjusted flight times between Queenstown and Christchurch will enable additional connections with transTasman services out of Christchurch to Australia.

November 2010: Air New Zealand (ANZ) is to paint an A320 in a special black livery to promote the 2011 Rugby World Cup being hosted in New Zealand and (ANZ)'s sponsorship of the national team, the "All Blacks." The A320 will enter service in January 2011 wearing this distinctive livery and will operate on several major domestic routes. - - SEE PHOTO - - "ANZ-A320-ALL BLACK-2010-11."

December 2010: Qantas (QAN)’s market stranglehold in Australia is set for the most dramatic shakeup since the demise of Ansett (ANS) in 2001, after the Australian competition regulator, the Australian Consumer and Competition Commission (ACCC) gave approval for Virgin Blue (VOZ)’s comprehensive alliance with Air New Zealand (ANZ), reversing a draft decision rejecting the partnership and a draft OK tick for its tie-up with Etihad Airways (EHD). The two alliances underpin a (VOZ) makeover set to be unveiled next month.

(ACCC) Chairman, Graeme Samuel said that the regulator was satisfied that the alliances will “likely benefit passengers in a number of ways including more choice of routes and frequencies, and potentially lower fares, as a result of cost savings and efficiency improvements.”

The Virgin Blue Group of Airlines, CEO & Managing Director, John Borghetti, welcomed the separate decisions saying they were “truly game changing,” adding, “We are extremely pleased that the way is now cleared for us to create a truly global airline that not only offers a great product and service but also greater frequencies and great value for money fares.”

Starting in January, (VOZ) will roll out a series of innovations that will reshape the airline with business class (C), new branding, larger airplanes, color scheme, uniforms and on board offering intended to reshape and reposition the airline.

The alliance with (ANZ), which was previously initially rejected by the (ACCC), involves a coordinated approach to a range of issues including pricing, revenue management, schedules, capacity, and routes flown.

However, Samuel warned that the (ACCC) is still worried that the alliance may negatively affect competition on a number of routes between Australia and New Zealand. To counter this, it "imposed a number of conditions on authorization which are designed to address these competition concerns."

The (ACCC) says there is a narrow margin between public benefits and public detriments in this case. Because of this, it has opted for a shorter authorization period. It usually grants approval for five years, but has limited the (ANZ) - (VOZ) authorization until December 31, 2013. This is the major point of difference between the airlines’ application and the (ACCC) ruling. If there are no applications for review, the alliance may begin January 7, the (ACCC) says. While this is too soon for the two carriers to launch their partnership, it should be operational sometime in the first quarter of 2011, an (ANZ) spokesman says. The airlines intend to coordinate their approach to pricing, revenue management, capacity, schedules and routes. The routes subject to capacity guarantees include flights between Wellington and Sydney, Brisbane and Melbourne, as well as Auckland - Brisbane, Dunedin - Brisbane, and Queenstown - Sydney services. On these routes, the airlines must increase capacity in line with the rate of economic growth or the increase in passenger demand between the two countries. Irrespective of these indicators, current capacity must at least be maintained in these markets.

The Virgin Blue (VOZ)/Etihad (EHD) alliance involves joint pricing and scheduling of services across networks and also an addition of capacity between Australia and Abu Dhabi. The (ACCC) said it "considers that the [Etihad (EHD)] Alliance is likely to promote competition and result in benefits for Australian consumers through new international services and increased online connections," Samuels said.

“The Etihad (EHD) partnership will see us establishing an international hub in Abu Dhabi. This will allow us to offer corporate and leisure travelers a very attractive one-stop alternative to more than >14 destinations in Europe, plus the Middle East and Africa," Borghetti said. V Australia (VAZ), (VOZ)’s long-haul airline, will commence direct services from Sydney to Abu Dhabi three times per week in February 2011 and three Brisbane - Abu Dhabi services per week by February 2012.

(VOZ) is awaiting a final determination from USA regulators on its proposed alliance with Delta Air Lines (DAL). The (DOT) tentatively disapproved the deal; however, the Australian government is now lobbying for approval on (VOZ)'s behalf. The (ACCC) has approved that tie up.

The New Zealand Ministry of Transport followed the (ACCC), giving the green light to the alliance between Virgin Blue (VOZ) and Air New Zealand (ANZ).

Air New Zealand (ANZ) will take delivery of its first new 777-300ER, which will be fitted with a unique cabin product that (ANZ) hopes to market to other carriers. The cabin product includes a new design for premium economy (PE) seats, and an economy class (Y) option known as “Skycouch” that will allow seats to convert to two-person lie-flat sleeping areas. (ANZ) will license these designs to other airlines after operating the product exclusively for 18 months. (ANZ) says more than >30 airlines have expressed interest in the seats, and formal negotiations are underway with airlines in Asia, North America, and Europe. The Skycouches, in particular, have attracted attention. Two economy-class (Y) passengers can effectively buy a third seat for half price, and an insert converts the seats into a bed for families or couples.

(ANZ) CEO, Rob Fyfe says demand has already been strong for the Skycouches. This option has been selling at the same level as the other seat classes, even though it is only being sold through (ANZ) at the moment and not through all the regular channels. The new 777-300ERs will initially go to (ANZ)’s Auckland - Los Angeles - London route. (ANZ) will have three of the airplanes on this route by April, when it will be able to guarantee the new cabin product on all flights. (ANZ) has five 777-300ERs on firm order.

(ANZ) takes delivery of its first 777-319ER (38402, ZK-OKM) on Christmas Eve. The airplane will be the first to feature (ANZ)'s new Economy (Y) "Skycouch" — affectionately dubbed “Cuddle Class.” Fyfe says that (ANZ) has seen strong interest and healthy forward bookings in "Cuddle Class" since the product was announced.

January 2011: Air New Zealand (ANZ) and Virgin Atlantic (VAA) have strengthened their relationship by signing a code share agreement on several international and domestic routes. The pair will be able to sell connecting flights on each other’s services. This will primarily include (ANZ) routes within New Zealand, between Australia and New Zealand, and some transpacific and Pacific Island routes. The code share will also apply to two of Virgin Atlantic (VAA)’s long-haul Asia-Pacific routes.

The airlines still must obtain regulatory approval but expect the code share to enter force from February 28. The two carriers already have well-established interline cooperation and a reciprocal frequent flyer partnership. The code share should increase connecting traffic for both.

The specific (ANZ) routes in the code share will be: from Sydney to Auckland, Christchurch, and Wellington; from Auckland to Christchurch, Wellington, Queenstown, and Rarotonga; from Los Angeles to Rarotonga; and San Francisco to Auckland. The (VAA) routes will be London Heathrow - San Francisco and Hong Kong - Sydney.

Later, (ANZ) said it will acquire a substantial shareholding in Virgin Blue (VOZ), a strategic move that has been long-anticipated.
(ANZ) notified the Australian and New Zealand stock exchanges that it plans to acquire between 10% and 14.99% of (VOZ), but (ANZ) CEO, Rob Fyfe emphasized it has no intention of making a takeover bid for (VOZ).

(ANZ) has received Australian Foreign Investment Review Board approval to purchase up to 14.99% of (VOZ), a shareholding level that will keep total foreign ownership within the statutory limit of 49%. The UK-based Virgin Group holds 26% of (VOZ).

"The investment in (VOZ) is part of (ANZ)'s strategy to develop scale and reach in this region," Fyfe explained. "The Tasman alliance with (VOZ) was the first step in this strategy. This investment cements the emerging relationship between our two airlines."

Last month, New Zealand regulators gave the final green light to an (ANZ)/(VOZ) alliance that covers three areas of cooperation: A broad code share arrangement covering all Tasman sectors and domestic sectors forming part of a connecting Tasman journey; a revenue allocation agreement supported by a joint TransTasman Network Planning and Revenue Management Team; and a reciprocal frequent flier and lounge access agreement.

Meanwhile, (ANZ) has welcomed China Southern (GUN)’s decision to operate a direct flight from Guangzhou to Auckland, instead of its previous plan to have one-stop service via Melbourne. The one-stop flight would have “added to the congestion in the already over-serviced [New Zealand - Australia] market,” says (ANZ) Deputy CEO, Norm Thompson. Guangzhou was likely one of the new markets (ANZ) was targeting, and (GUN) is in a different alliance. However, (ANZ) stresses that the (GUN) flight will still have the positive effect of bringing more visitors to New Zealand.

Lufthansa (DLH) Technik (LTK) is to provide a Total Component Support agreement for a selected number of components for (ANZ) with immediate effect. The contract is for components utilized on (ANZ)’s 777-200 and 777-300 airplanes. The signing of the contract signifies the first time that (ANZ) has engaged the services of Lufthansa (DLH) Technik. “It is an exciting time for (ANZ) with our new 777-300 airplanes entering service this month, and we are pleased to have (LTK) as one of our key support partners,” says Vanessa Stoddart, Group General Manager Technical Operations & People. “We are delighted to have a new partner in (ANZ) and will be working towards a long-term support partnership with them,” said Robin Johansson, Director Sales South East Asia & Australia/Pacific at (LTK). “The contract is also very special for us as with (ANZ) we have succeeded in gaining a key customer in New Zealand for the first time.”

New Zealand Prime Minister, John Key said he is looking at plans to cut the government's stake in (ANZ) to help slash the country's debt.
According to the "Associated Press (AP)," Key, whose conservative national government faces an election this year, said New Zealand needed to reduce its reliance on foreign debt, which he said was equivalent to 85% of the country's Gross Domestic Product (GDP). Key hailed the success of (ANZ) under its "mixed ownership" model, in which the government has a 74.6% stake, while the private sector owns the rest. But he added he would look at reducing Wellington's holding in (ANZ), while retaining a majority stake, (AP) reported.

February 2011: Air New Zealand (ANZ) will run a special 747 flight from Auckland to Christchurch in the South Island of New Zealand, which was devastated by an earthquake. (ANZ) is charging just NZ$50/$35 a seat and said that fare also applies to any service to and from Christchurch from any point in New Zealand to enable support staff and relatives to get in and people to be evacuated.

All airline services to Christchurch were suspended after the magnitude 6.3 earthquake hit at 12:51 pm local time. The event took out New Zealand’s Air Traffic Control (ATC) radar, which forced a 2-hour halt on all departures to and from the country.

Christchurch-based, (ANZ) CEO, Rob Fyfe advised New Zealand Prime Minister, John Key and Christchurch Mayor, Bob Parker that the airline’s full resources are available to assist in the tragedy, for which the death toll stands at 75 as of press time, according to the Associated Press (AP).

Qantas (QAN), Pacific Blue (PBI), and Jetstar (IMU) are reviewing their operations to Christchurch and are expected to resume services.

(ANZ) posted a +75% year-over-year improvement in net profit to +NZ$98 million/+$55.9 million for the six months ended December 31, 2010, on a +9% increase in revenue to NZ$2.23 billion. Expenses, including foreign exchange losses of NZ$75 million, climbed +11.4% to NZ$1.83 billion. (ANZ) Chairman, John Palmer attributed the profit to a lift in passenger numbers, cargo volumes and yields. Passengers carried climbed +7.8% to 6.7 million with capacity (ASK)s increasing +2.7% to 16.8 billion, while traffic (RPK)s jumped +6% to 14.14 billion. Load factor lifted +2.6 points to 84.2% LF. Yield improved +7.2%.

(ANZ) CEO, Rob Fyfe said that during the six-month period, (ANZ) saw initiatives come to fruition that have further strengthened its competitive position. In December, it took delivery of its first of five 777-300ERs fitted with “Cuddle Class” convertible economy (Y) class seat-beds and improved premium economy (PY) product.

Going forward, (ANZ) warned of fuel volatility but is bullish on the successful implementation of initiatives across all facets of the business to enhance the (ANZ) passenger experience, product offering, network, technology, efficiencies and strategic position.

(ANZ) told "Radio New Zealand" that about 40 members of its 1,900-strong Christchurch staff is unaccounted for after the earthquake. Fyfe is leading a team going to homes to search for the missing staff.

Etihad Airways (EHD) reached a code share agreement with Air New Zealand (ANZ) for flights across the Tasman, giving (EHD) passengers the option to connect to cities including Auckland, Wellington, and Christchurch. The agreement complements (EHD)'s alliance with Virgin Blue (VOZ), which became effective in 2010. Code share flights will be able to be purchased by the end of February for travel from the end of March, (EHD) said. The deal is subject to regulatory approval. The agreement between the airlines will enable customers to earn and spend loyalty program miles on each other's flights.

According to the accord, (EHD) will place its code on (ANZ) flights from Sydney to Christchurch, Rotorua, Wellington, and Queenstown. The EY code will also be placed on (ANZ) flights into Melbourne from Auckland, Wellington, and Christchurch.

(ANZ) will place its code on all (EHD)'s flights to London Heathrow. It will additionally place its code on 11-times-weekly, Abu Dhabi - Sydney service, thrice-weekly, Abu Dhabi - Brisbane flights, seven-times-a-week, Abu Dhabi - Melbourne, and thrice-weekly Abu Dhabi - Beijing service.

(EHD) CEO, James Hogan slammed Qantas (QAN) management and told it to focus on its own business instead of complaining about the threats posed by Middle Eastern and Chinese airlines, according to the "Sydney Morning Herald." In a dire warning about the viability of its full-service international operations without a change of direction, (QAN) CEO, Alan Joyce blamed foreign airlines for flooding the market with extra capacity. Hogan disputed Joyce's claims that the foreign airlines were ''simply taking existing demand,” saying that (EHD) had opened up new markets in Europe, India, and the Middle East.

''I have been hearing this for a long time from my mates in Australia. [But] we have opened up the market,'' Hogan said. ''They should get back and fight and let the customer decide who wins. I can't sit here and complain about capacity and people moving into my market.''

Emirates (EAD) also claims that 80% of the traffic it brings into Australia is from destinations that (QAN) does not serve.

Air France Industries (AFI)/(KLM) Engineering & Maintenance (E&M) signed an agreement with Air New Zealand (ANZ) expanding its 777 Component Services Program (CSP) to cover support for common parts for (ANZ)’s 777-300ERs. The (CSP) previously covered only its 777-200ER fleet. The 777 (CSP) program is offered jointly by Boeing (TBC) and (AFI)/(KLM) (E&M).

(ANZ) announced it will enable its new A320, outfitted with an all-black livery in homage to the country's famous All Blacks rugby team, with voice and data capability. It will be the first commercial airplane in the country that will allow passengers to use their mobile phones during domestic flights. (ANZ) earlier this month took delivery of the first of 14 A320s it is expected to receive through 2016, with three more coming this year. The airplanes will progressively replace (ANZ)'s 737-300s on domestic flying.

On board connectivity solutions provider OnAir, in partnership with Vodafone, said it will outfit the new A320 with an in-flight passenger communications solution, including (GSM)/Data services, within the next month. “Feedback from our customers shows they value being able to stay in touch, while they are in the air,” (ANZ) General Manager Operations & Chief Pilot, Dave Morgan said. “This new in-flight technology, which uses an airplane-based cell site and Inmarsat satellites, will mean our customers on board the new black A320 airplane will be able to safely use their mobile.”

Vodafone will serve as the network operator for the service, which is priced at NZ$0.80/61 US cents per outbound text, NZ$3.50/minute to make a call, NZ$2.00/minute to receive a call and NZ$20 per megabyte of data.

777-319ER (38406, ZK-OKN) delivery and A320-214 (4584, ZK-OJQ), (ALC) leased.

March 2011: Air New Zealand (ANZ) warned it will lose money in the second half of the financial year because of high fuel prices and the impact of earthquakes in New Zealand and Japan. It expects full-year earnings to fall below NZ$100 million/$75 million.

(ANZ) criticized Qantas (QAN) and the New Zealand Commerce Commission (NZCC) over recent press releases related to (QAN) agreeing to plead guilty to cargo price fixing. In a statement, (QAN) said it had reached a settlement with the (NZCC) regarding price-fixing conduct within its freight division between 2000 and 2006. Although the settlement terms are confidential, (QAN) recommended to the New Zealand High Court that it will pay a fine of NZ$6.5 million/$4.8 million, which includes a 50% discount for (QAN)’s cooperation with the (NZCC) in its investigation of the cartel. The penalty hearing is set for April 11, when (QAN) said it “will plead guilty to participating in the cartel with other international airlines, including Air New Zealand (ANZ).”

In a strongly worded statement, (ANZ) termed the wording in the press releases by the (NZCC) and (QAN) to be “misleading and defamatory.”
(ANZ) General Counsel, John Blair said: “In announcing penalties agreed between the (NZCC) and (QAN), British Airways (BAB) and Cargolux (CLX), the (NZCC)’s ‘background’ fails to note that none of the investigations referred to by the (NZCC) have resulted in a finding of illegal conduct by (ANZ). The (NZCC)’s media release leaves an impression that all airlines involved in all jurisdictions are guilty and simply 'awaiting hearing' or 'awaiting trial.' That is simply not true and the commission knows it.” In fact, last May (ANZ) shot back at the Australian Competition and Consumer Commission (ACCC) over the charges.

Blair added that (ANZ) was “surprised at (QAN)’s claim that its own illegal conduct included communication with (ANZ).” According to Blair, “(QAN) has acknowledged that in a number of off-shore jurisdictions it participated in widespread criminal behavior, whereas neither (ANZ) nor any (ANZ) employees have been found guilty of such behavior.”

The (QAN) settlement with New Zealand is the latest in a string of penalties against airlines for air cargo price fixing.

April 2011: OnAir announced Air New Zealand (ANZ) has expanded its in-flight connectivity service to an additional two airplanes. The service allows (ANZ) passengers to use mobile phones for on board calls, text messaging, email and mobile data. Two airplanes currently offer the service on “selected domestic routes,” and the two additional airplanes will be deployed by the end of this year.

The New Zealand Commerce Commission (NZCC) has withdrawn its claim against Air New Zealand (ANZ) cargo employees five years after it launched its investigation into cargo practices at the airline.

(ANZ) General Counsel, John Blair welcomed the decision. “This has been an incredibly stressful period in the lives of our people, and I have been saddened to see the needless impact it has had on these hard-working employees, not to mention the millions of dollars of taxpayers’ funds spent to get to this point,” he said in a statement.
Blair continued, “We have maintained from the start of the commission’s investigation more than five years ago that neither the airline nor our employees had committed any breach of [New Zealand's] Commerce Act and we remain firmly of that view. The commission has yet to produce any evidence to the contrary despite the enormous resources it has deployed.”

(ANZ) recently successfully defended its position and practices to the European Commission (EC), which found no evidence of wrongdoing against the airline, and was cleared last year following a similar investigation by the South Korea's Fair Trade Commission.

According to (ANZ), only the Australian Competition and Consumer Commission (ACCC) and the (NZCC) continue with allegations against the airline and “both are being strongly defended.”

Air New Zealand (ANZ) has established a specialist Aviation Institute to provide a range of training covering most airli9ne industry roles, under a single organization. Designed as a "one-stop shop," it will handle the majority of (ANZ)'s needs as well as outsourced airline pilot (FC), cabin attendants (CA), engineering (MT) and maintenance training..

May 2011: Air New Zealand (ANZ) and Virgin Australia Airlines (VOZ)/(VAZ)/(PBI) said they will revamp their networks across the Tasman Sea linking Australia and New Zealand as part of their alliance, which was approved in December. The alliance connects (ANZ)’s domestic network of 26 cities to (VOZ)’s domestic network of 31 domestic destinations, offering the largest Australasian route network for transtasman travelers.

The new network will be effective for the upcoming northern winter 2011 schedule and tickets will be on sale from July when the code share commences. Under the new network, (ANZ) will operate approximately 70% of capacity and (VOZ)/(VAZ)/(PBI) will operate 30%, reflecting the market share the airlines had prior to the alliance. The integration will see significant adjustment and harmonization of flights to ensure more convenient schedules for passengers.

(ANZ) Group General Manager Australasia Airline, Bruce Parton said that since the airlines had received regulatory approvals in December, dedicated teams from both airlines had worked to optimize the networks. “The changes better match capacity to demand and in many instances this means a greater range of flight times by removing wingtip flying, as well as better connections to domestic Australia and domestic New Zealand flights,” said Parton, noting, “As indicated last year, we are actively looking at a couple of potential new transtasman routes, which we will likely make a decision on before the end of the year.”

(ANZ) will increase international capacity to China by +21.6% and Japan by +16% from November. In China, (ANZ) will increase service to nine-times-weekly on its Auckland (AKL) - Hong Kong route, three-times-weekly on its (AKL) - Beijing route and four-times-weekly on its (AKL) - Shanghai route.

(ANZ) plans to introduce a 747-400 on Japan routes between December and February.

(ANZ) Deputy CEO, Norm Thompson said, “We will be increasing our Auckland – Tokyo capacity by +16%, with the up-gauge of the daily service from a 777-200 to a 747-400, reflecting our confidence in the return of tourists to New Zealand from this important market.”

On North American routes, all (AKL) – San Francisco services will be operated by 747-400s, which will increase capacity +14%, while (AKL) – Vancouver capacity will rise +10%.

June 2011: Air New Zealand (ANZ) will increase Auckland - Tokyo capacity by +16% by replacing the 777-200 operating the route with a 747-400.

Airline operations in Australia and New Zealand were thrown into chaos by ash from Chile’s Puyehue-Cordon Caulle Volcano eruption - - SEE PHOTO - - "ANZ-2011-06-CHILE VOLCANO ERUPTION."

Qantas (QAN) and Jetstar (IMU) canceled all operations from Melbourne, Tasmania and to and within New Zealand on Sunday, June 12 and Monday June 13, while other airlines limited operations in the affected areas. The ash cloud now stretches almost around the globe in the roaring forties latitudes and is located at altitudes of between 6,000 m and 10,600 m/19,680 ft - 32,800 ft. It temporarily grounded air service to, from and within Argentina the previous week.

In contrast to the Australian airlines, Air New Zealand (ANZ) and most international airlines said they would continue operating normally, flying either above or below the cloud or flying longer routes to avoid it where required. Puyehue began erupting June 4, with the initial ash plume reaching above 15,240 m.

More dense ash areas to the south and west are expected to affect airline operations in Australia over the next week. New Zealand’s Civil Aviation Authority and Australia’s Civil Aviation Safety Authority are monitoring the cloud in conjunction with both countries' volcanic ash centers and weather bureaus.

Airservices Australia and New Zealand’s Airways are also involved, liaising with airlines to develop new flight routes around the cloud. Decisions on whether or not flights will operate are being made by individual airlines and operators, Airservices said. “The airlines will make decisions on how flights operate based on a careful assessment of all the information,” a spokesperson explained.

August 2011: Air New Zealand (ANZ) posted a fiscal-year net profit of +NZ$81 million/+$68 million, down -1% compared to the year-ago period.

(ANZ)’s second half was severely impacted by natural disasters, including earthquakes in Japan and New Zealand that resulted in a -NZ$37 million loss after a +NZ$112 million profit in the first half.

(ANZ) said the Christchurch earthquake in February, soaring fuel prices and foreign exchange losses caused the decline in normalized profit, which excludes movements in fuel hedges, to NZ$75 million for the year ended June 30, compared with NZ$90 million the previous year.

(ANZ) CEO, Rob Fyfe said that operating conditions in the past six months were the most difficult (ANZ) has faced in a decade. “The combination of reduced demand for travel as a result of the devastating Christchurch and Japan earthquakes, additional capacity into Christchurch to assist the relief effort and compassionate fares for those affected by the Christchurch earthquakes resulted in an estimated -$70 million negative impact on earnings,” Fyfe said.

Operating revenue was up +7% to NZ$4.34 million with a +4.3% lift in yield on international routes to 9.8 cents. Passenger numbers increased +6.3% to 13.1 million.

(ANZ) increased capacity, reporting a +2.5% year-over-year lift in (ASK)s to 32.35 billion. (RPK)s climbed +4.5% to 26.99 billion and load factor was up +1.6 points to 83.4% LF.

Yield increased +2%. Fuel climbed +28%, driving costs up +10.1% to NZ$3.67 billion.

Fyfe said (ANZ) was reviewing its international operations with an eye toward shifting capacity and examining sales and marketing strategies. He noted changes would be rolled out before year end.
“(ANZ) is well placed competitively and there are a number of initiatives in place which we expect to deliver improved results. In the absence of further deterioration in global economic conditions and an escalation in fuel prices, we expect a better financial performance in the 2012 financial year,” Fyfe said.

(ANZ) operated two Auckland - Las Vegas 747 charter flights to celebrate the 5th birthday of its "grabaseat" low fare service.

September 2011: Air New Zealand (ANZ) lifted its stake in Virgin Australia (VOZ) from 14.99% to 19.99%, in a move (ANZ) CEO, Rob Fyfe said will continue (ANZ)’s “strategy to develop scale and reach in this region.”

Fyfe confirmed (ANZ) has no intention of making a takeover bid for (VOZ).

In a complex deal, the increased interest is held through an equity derivative agreement with Deutsche Bank, which gives (ANZ) an increased economic interest of up to 5% in (VOZ), subject to certain conditions. One condition is that the purchase does not cause (VOZ) to breach its foreign ownership cap of 49% specified in the Australian Air Navigation Act. Under the agreement, (ANZ) is guaranteed a minimum additional exposure of 3.5% and up to a maximum additional exposure of 5%.

The outlay for the minimum exposure of 3.5% will be A$23 million/$22.5 million, while the outlay for the maximum 5% will be A$32.8 million. (ANZ) said it intends to work with (VOZ) to bring its interest out of the derivative and into physical shares as soon as possible within the constraints of the foreign ownership cap. Prior to entering into the equity derivative arrangement, (ANZ) received Australian Foreign Investment Review Board approval to purchase up to 19.99% of (VOZ).

Fyfe confirmed to (VOZ)’s CEO, John Borghetti in a telephone call there is no intention to make a takeover bid for (VOZ). “Our increased investment in Virgin Australia (VOZ) continues (ANZ)’s strategy to develop scale and reach in this region,” Fyfe said. “The transTasman alliance with (VOZ) was the first step in this strategy, followed by our initial investment in January of this year. This increased investment demonstrates our continued belief in the strategy that (VOZ) is pursuing and our confidence in the (VOZ) management team to deliver this strategy,” Fyfe said.

“The transTasman alliance that we have with (VOZ) is now well underway and delivering great results for customers and also for both airlines. Our combined share in the transTasman market has grown significantly year on year,” he said. “As we noted at the time of our original investment, our stake in (VOZ) also provides us with an interest in the number two airline in Australia and, through this, access to opportunities in the growing Australian domestic market,” said Fyfe, noting, “(ANZ) has no intention to enter the Australian domestic market in its own right.”

(MTU) Maintenance announced it will perform maintenance on (GE90-115B) engines powering Air New Zealand (ANZ)’s five 777-300ER airplanes.

October 2011: Air New Zealand (ANZ) expects about a $20 million boost from the World Rugby Cup currently being played in New Zealand.

(ANZ) CEO, Rob Fyfe has warned that approximately half of air travel is discretionary, making airlines highly vulnerable to the health of the economy as well as external events and shocks. “We also have no long-term control over our largest expense, which is fuel. Since 2002, the price of a barrel of oil has soared from $25 to an estimated $110 for 2011, and now represents 30% of our costs, up from 13% in 2002,” Fyfe said.

“We are also the tax collectors’ favorite target every time a government want some extra money,” he said. “The UK Air Passenger Duty collects £2.5 billion per year and the cost of complying with the European Emissions Trading Scheme (ETS) is estimated at $1.2 billion in 2012 alone.”

Fyfe warned that the USA government wants to charge airlines $100 every time a flight takes off, “and that happens more than >30,000 times per day in the USA.” In Australia, Fyfe said, departure tax can be as much as a third of the total ticket price for a fare between New Zealand and Australia.

Fyfe pointed out that it’s estimated that halving of this tax would see more than >100,000 extra return passengers on that route and its complete removal would increase traffic by +13% or 327,000 passengers. “Surely the potential spend by those extra visitors would be worth much more to the Australian economy than the tax income?”

Fyfe also raised the issue of airline ownership restrictions. “Our ability to compete across national borders like other businesses is severely limited by outdated ownership and control rules that bear little relationship to the way businesses operate today,” Fyfe said.

“For the same reason, mergers and consolidation among international airlines are exceedingly difficult. As a result, the industry is highly fragmented, with the top 10 airlines having a market share of only around 30%.”

Fyfe said that by comparison, the top 10 automobile companies have around a 70% market share, while the three top players in the hair care market have a 65% share and the two dominant soft drink suppliers hold a 60% market share.

(ANZ) has ordered seven ATR72-600s, plus five options, in a deal worth $270 million at list prices. Deliveries will begin in October 2012 and are expected to be completed by 2016.

(ANZ) operates 11 ATR72-500 airplanes through its subsidiary carrier, Mount Cook Airline. The latest order effectively doubles (ANZ)’s ATR fleet, if all options are exercised.

(ANZ) CEO, Rob Fyfe said (ANZ) needs to expand its fleet “not only to add frequencies on existing routes but to step up from smaller airplane types.” He said (ANZ) believes the ATR72-600 is the “most cost-effective, environmentally conscious and customer-friendly airplane available in its market segment.”

(ANZ) will extend operation of its seasonal weekly, Sydney - Rarotonga service to year-round beginning July 4, through until March 2014.

November 2011: The Boeing (TBC) 777 program is implementing 10 initiatives that will eliminate 5.5 million pounds CO2 emitted and 300,000 gallons of jet fuel used annually during the 777 delivery process. The first customer to benefit from all 10 of the initiatives is Air New Zealand (ANZ), which took delivery of a 777-300ER (extended range) jetliner on November 7. “(ANZ) is excited to participate,” said Duncan Mairs, (ANZ)’s Technical Manager currently based in Seattle overseeing (ANZ)’s 777-300ER deliveries. “We have a wide range of environmental initiatives under way across the business. Being able to find ways to lessen the environmental impact of building an airplane is another excellent step on our journey to becoming the world’s most environmentally sustainable airline,” he said.

During the 20-day paint and delivery process, Boeing (TBC) workers incorporated new processes including reducing the number of times potable water and hydraulic filters are changed, using chromate-free primer in the painting process, and enhancing recycling and use of electric carts instead of gas-powered vehicles. Watch a video to see the energy-saving ideas in action: http://bcove.me/gcdn6c0v.

“A team of employees identified redundancies in testing,” said Jeff Klemann, VP Everett Delivery Center. “One idea was to eliminate engine-run tests already performed by (GE), the 777&#8242;s engine manufacturer. This will result in a reduction of -1.4 million pounds of CO2 in 2012 as well as less community noise and emissions.” The team also improved flight planning efficiency for pre-delivery test flights. Reducing fuel loads reduces airplane weight, which improves fuel economy. By careful pre-planning, flight crews (FC) also are able to reduce flight times. The flight-planning initiatives will save a total of -193,155 gallons of jet fuel annually.

The chrome-free primer used on the recently delivered (ANZ) jet reduces the environmental impact of the paint and reduces potential health and safety risks during painting. It also eliminates the need for special handling of paint waste and clean-up, and designated off-site disposal areas. These advantages also provide benefit when the airplane is prepared for repainting. Nine of the environmental initiatives are now implemented on all 777 airplanes delivered. Use of chrome-free primer is optional. (ANZ) will use chrome-free primer on future 777-300ER deliveries.

Air New Zealand (ANZ) has launched a new Airpoints frequent flyer membership initiative designed to transform its loyalty card into what it terms the “ultimate travel companion.”

Dubbed "OneSmart," one side of the card is an (ANZ) Airpoints card, enhanced with ePass technology for electronic domestic check-in, and the other side is an optional Prepaid Debit MasterCard and virtual travel wallet. Once activated, OneSmart can be loaded with funds and used for everyday purchases and to shop online. It also has built-in PayPass contactless technology for small value purchases.

OneSmart is the only New Zealand prepaid debit card that rewards passengers with loyalty points. Purchases made on the debit card can earn Airpoints Dollars (frequent flyer points) and are stored in the OneSmart account.

OneSmart also enables passengers to take money overseas. Foreign exchange rates can be locked in by loading up to four overseas currencies in advance, from a selection of eight.

If cash is needed overseas, the Airpoints card can also be used at an international (ATM) to withdraw funds and OneSmart doesn’t charge any international (ATM) withdrawal fees or commissions.

December 2011: Air New Zealand (ANZ) and All Nippon Airways (ANA) will establish a closer partnership from March 25 providing passengers on both airlines with improved access to destinations in Japan and New Zealand.

The partnership, subject to regulatory approval, will give (ANZ) passengers access beyond the gateways of Tokyo Narita and Osaka Kansai through (ANA)’s network of 700 flights a day to 48 domestic destinations.

At the same time, (ANA) passengers will have access to destinations in New Zealand and the Australasian region beyond (ANZ)’s Auckland gateway.

According to (ANZ), the partnership will also open up Japan as a corridor for New Zealanders traveling to Europe and other Asian destinations.

(ANZ) will move its airport base at Narita to Terminal 1 South from March 25, 2012, placing it alongside other Star (SAL) Alliance carriers.

Boeing (TBC) said its 777 twin-engined wide-body jet has received Federal Aviation Administration (FAA) approval for Extended Twin-engine OPerations (ETOPS) flights up to 330 minutes away from the nearest available airport. This authorization can be useful to airlines flying across remote regions such as over the south Pacific, over the North Pole, and from Australia/New Zealand (Oceania) to South America and southern Africa. It allows qualifying airlines to fly more direct routes, reducing both fuel burn and travel time.

The authorization allows 777 customers who purchase or already operate 777-300ER (extended range), 777-200LR (longer range), 777F Freighter, and 777-200ER models equipped with General Electric engines to fly up to 330 minutes from an alternate airport. (FAA) approval for the 777-200ER equipped with Rolls-Royce and Pratt & Whitney engines is expected to follow over the next few months.

“Boeing twin-engine jets have flown more than >7 million (ETOPS) flights since 1985, and more than >120 Boeing operators fly more than >50,000 (ETOPS) flights each month,” said Larry Loftis, VP & General Manager 777 Program. “This is the logical continuation of the Boeing philosophy of point-to-point service. Passengers want to minimize their overall travel time. This is one more step in that direction.”

Previously, the furthest this jet was allowed to fly from the nearest airport was 207 minutes. The (ETOPS) time extension is introduced in two stages: Airlines must first operate the planes safely for a year at up to 240 minutes away from the nearest airport before they can move up to 330 minutes.

Earlier this month, Air New Zealand (ANZ) became the first airline to fly a 240-minute (ETOPS) flight from Los Angeles to Auckland, New Zealand.

The 330-minute (ETOPS) certification follows test flights to establish the reliability of the airplane, which can safely operate with just one engine for that extended period. Any airline wishing to fly such flights requires its own (FAA) approval, showing that its training and processes are appropriate and that it has installed additional fire suppression equipment.

An increasing number of operators already are providing (ETOPS) service to their passengers. For example, 93% of 777, 50% of 767, and 33% of 757 operators fly (ETOPS) routes. Two-engine (ETOPS) routes are more than >60 minutes from an alternate airport.

The 777 fleet has flown more than >2 million (ETOPS) flights since its debut in June 1995. Fifty-three 777 operators fly more than >22,000 (ETOPS) flights per month.

Air New Zealand (NZ) has signed Memo of Understanding (MOU) with Australia-based Licella Pty Ltd to examine developing and marketing a process to convert woody biomass into sustainable aviation biofuel in New Zealand.

Licella has developed a process that uses a Catalytic Hydro Thermal Reactor (Cat-HTR), which converts woody materials and other biomass into a high-quality, bio-crude oil in a one-step process.

(ANZ) Deputy (CEO), Norm Thompson said (ANZ) is collaborating with a number of parties to research and develop bio-derived sustainable fuels that can be used to progressively replace conventional aviation fuels, with a particular focus on developing a local aviation biofuel industry in New Zealand.

(ANZ) and New Zealand Trade & Enterprise have been working closely with Licella & Norske Skog for more than two years exploring opportunities for the technology in New Zealand.

Licella Fiber Fuels, a new joint venture (JV) formed by Licella & Norske Skog Australasia, holds the exclusive license of proprietary knowledge and IP for converting sustainable ligno-cellulosic biomass into a bio-crude oil using the Cat-HTR.

Licella (CEO), Steve Rogers said the (JV) will hopefully lead to construction of a large-scale second generation bio-crude oil production plant in New Zealand or Australia.

In a related move, Virgin Australia (VOZ) also signed a (MOU) with Licella focusing on agricultural and farm waste biomass into sustainable aviation fuel.

Licella’s goal is to produce 500,000 barrels of bio-crude oil a year by 2015 to 2016.


Rugby fans, or just fans of great style, feast your eyes on this beauty of a 777-300ER that has just rolled out of Boeing’s paint hangar in Seattle dressed all in Black.

The plane belongs to (ANZ), which commissioned the special paint job to commemorate its country’s famous rugby team, the "All Blacks," which this year was crowned World Champions after beating France in the 2011 World Cup Final.

All Blacks rugby players, Kieran Read and Andy Ellis led the one-of-a-kind 777-300ER airplane out of the hangar on December 16; (ANZ) is a long-time sponsorship of the All Blacks.

According to Boeing (TBC), painting the airplane took just over a week, two days longer than it normally takes to paint a 777 airplane. 185 gallons/700 litres of chrome-free primer and paint was used and involved a total of 14 painters working in shifts 24 hours a day.

Prepping and painting the airplane entirely black took one and a half days, followed by a further five days for the intricate detail of the silver fern overlaid on it and the Koru symbol. The remaining time was spent on the finishing touches.

“It was, without a doubt, one of the most challenging paint jobs we’ve ever done, but the paint team was up for the challenge and the results are absolutely outstanding. I am very proud of what the paint team has achieved,” said Jeff Klemann, Boeing VP Everett Delivery Center.

Contrary to popular belief, Boeing (TBC) says the black paint won’t cause the airplane to heat up a great deal. In fact, the more than >330 individual TV screens inside the airplane create more additional heat than the all black paint job.

“The all black color scheme and silver fern are a key part of both New Zealand’s and the All Blacks’ identity, so we’re excited to be able to take that iconic imagery to the world on a flying billboard that’s more than 242 feet/73.9 metres long,” said (ANZ) Group General Manager, International Airline, Christopher Luxon.

“It will certainly get people’s attention when they see it at Auckland, Los Angeles, London Heathrow and Melbourne airports over the coming year.”

The airplane is to be delivered to (ANZ) in late January following the completion of its interior fit out, and there’s more Black to come. By mid next year (ANZ) will have six airplanes featuring the All Black livery including two A320s and three Beech 1900D turboprops.

Black is So Back.

January 2012: The Air Transport World (ATW) Magazine selected Air New Zealand as its "Airline of the Year for 2012." (ANZ) has risen to the top tier of the industry in a host of areas, particularly in market position, product innovation, yield and social media to make the airline an industry trendsetter. The editors also cited (ANZ)'s commitment to operating a very young and highly fuel-efficient fleet and were impressed with its commitment to reducing carbon emissions through programs such as Flex Tracks and Aspire, as well as its support for conservation and eco-tourism projects.


Air New Zealand (ANZ) (CEO), Rob Fyfe plans to step down by the end of 2012. The "New Zealand Herald" quoted a statement from Fyfe saying that his decision was made partly to create the space for (ANZ)’s talented and capable executives to realize their full potential.

Fyfe, who has been (ANZ) (CEO) since 2005, is credited with introducing many of the changes that transformed the airline.

Chairman, John Palmer was quoted as saying that Fyfe had been an outstanding (CEO) and had the full support of the (ANZ) board.
"He has ensured that (ANZ) has remained profitable despite the backdrop of turbulent economic times that have seen airlines lose billions globally. The board respects that as a world class (CEO), Rob wants to continue to challenge himself and explore new opportunities,” Palmer said.

The search for a Fyfe’s successor is expected to take about six months.

In the search for more sustainable jet fuel, New Zealand biofuel company, LanzaTech announced it is opening an office in Mumbai to pursue a bio-jet fuel plant. The company is looking to collaborate with Jindal Steel & Power, a steel manufacturer, and oil company IndianOil. If a deal comes to pass, LanzaTech has technology that converts off-gasses from the steel plant into ethanol, which could then be converted into lowcarbon jet fuel by IndianOil.

Amsterdam-based SkyNRG finished 2011 on a high note by partnering with Thai Airways (TII) to conduct what was called “the first passenger biofuels flight in Asia” in late December (Air China (BEJ) flew a biofuel demonstration flight in October without paying passengers). The (TII) flight from Bangkok to Chiang Mai included a 777 with both engines running on a 50-50 fuel mix of bio-jet fuel derived from used cooking oil and conventional petroleum-based jet fuel. As we’ve seen before with these “first” flights, (TII) airline officials said the flight marked the beginning of a collaborative effort to develop a bio-jet fuel supply chain in Thailand. For SkyNRG, which sourced the fuel, this flight followed similar flights by AirFrance (AFA), Alaska (ASA), Finnair (FIN), (KLM) and Thomson Airways (ATZ)/(TFY), all since July, when bio-jet fuel became standardized.

In their search for commercially viable bio-jet fuel, airlines are leaving no stone unturned in Australia. Lufthansa has signed an agreement with the Perth-based biofuel company Algae.Tec. The plan is to “jointly evaluate the potential” of Algae.Tec’s algae-based crude oil as a low-carbon jet fuel source. Meanwhile, Air New Zealand (ANZ) and Virgin Australia (VOZ) signed similar agreements with the Sydney-based biofuel company Licella, which has technology to convert a range of waste plant material, such as sawdust, corn stalks and sugar cane waste, into bio-jet fuel.

February 2012: Air New Zealand (ANZ)'s medium-term priority remains the transformation of its long-haul network in the face of economic turmoil and soaring fuel costs. In a statement to shareholders on the back of (ANZ)'s half-year results to 31 December 2011, (CEO), Rob Fyfe said global factors including cost pressures in Europe and low demand from Japan resulting from last year's natural disasters in both countries had eroded profitability in its long-haul operation.

"Transforming our International Network to reflect these market challenges and restoring profitability has been a key focus over the last six months and will continue to be a priority for the medium term."

Traffic (RPK)s on the long-haul operation fell by -6.8% against the same period last year. Capacity was cut by -4.3% (ASK)s causing load factor to drop by -2.2% points to 82.4% LF.

Part of the restructuring involves ensuring it "serves the right market with the right capacity, using the right airplanes."

ANZ took delivery of its fifth 777-300ER in January. Fyfe described the type as "in many ways a fantastic airplane", citing fuel burn some -23% lower than its 747-400 fleet.

Further efficiencies will be gained when its first 787-9s arrive in 2014, said Fyfe, but until that point, (ANZ) will continue to run "some sub-optimal airplanes." Two 747s will exit the fleet this year, (ANZ) said, leaving just two of the type until the arrival of the 787s in the second quarter of 2014.

Fyfe added: "In recent weeks, we have seen the bankruptcy of established airlines in Europe (Malev (HGA) and SpanAir (SPP), and airlines in the Asia Pacific region contracting their networks.

"Given the challenges facing the industry, we expect more failures will follow as the year progresses. In response, we must continue to adapt (ANZ) to be a stronger, more efficient and more profitable business."

On the domestic side, (ANZ) now flies to 27 destinations, with a 28th, Mt Cook, due to be trialled in the 2012 - 2013 summer season, said Fyfe.

To support the domestic growth, the first two of seven ATR72-600s will enter its fleet this calendar year.

March 2012: Air New Zealand (ANZ) has announced a capacity increase between Auckland and several North American destinations, after Qantas (QAN) decided to withdraw its Auckland - Los Angeles route in May.

This move closely follows the mid-February collapse of Australian regional, Air Australia (STC) (formerly Strategic Airlines), which grounded its fleet February 17, after it said there were “no funds available to meet operational expenses.”

(ANZ) will increase its 12X-weekly, Los Angeles - Auckland (AKL) service to 14X-weekly in mid-June, using a combination of 304-seat 777-200 and 332-seat 777-300 airplanes. It will begin using 379-seat 747-400s on its San Francisco - (AKL) service, moving the route to 5X-weekly beginning in April, and upgrading to a daily service during peak demand periods. Its (AKL) - Vancouver service, which has previously operated between 2X- and 4X-weekly, will move to a 5X-weekly 777-200 service during the peak December - February season.

“Air New Zealand (ANZ) is able to add further capacity into North America if there is sufficient demand,” (ANZ) said.

(ANZ) took over routes between the Australian mainland and Norfolk Island (NLK) this month, as the virtual airline Norfolk Air (NOA) shut down. As of 2 March, (ANZ) airline flies twice-weekly to Sydney (SYD) and from the following day, also twice-weekly to Brisbane (BNE) from the island in the north of the Tasman Sea, between New Zealand and Australia. Both routes are operated with A320 airplanes. (ANZ) has already served the island from its Auckland hub since 1990.

(ANZ) grounded its entire fleet of ATR72-500 turboprops on 18 March after discovering hairline cracks around the cockpit windows of one airplane. Two of (ANZ)'s 11 ATR72-500s were quickly inspected and returned to service within hours, (ANZ) says.

Three airplanes require closer examination, five are "well-advanced" in the inspection process and one airplane was in already grounded for planned maintenance, the Star Alliance (SAL) carrier says.

The 68-seat ATR72-500s, which are operated by Mount Cook Airline, are 10.9 years old on average. (ANZ) will supplement Mount Cook Airline with some airplanes from the mainline fleet to restore two-thirds of the regional carrier's seating capacity.

The cracks were discovered during routine maintenance at Mount Cook Airline's base at Christchurch Airport. Two years ago, (ANZ) moved heavy maintenance work for Mount Cook Airline's ATR72 fleet from Christchurch to Nelson, the home of sister regional carrier and Bombardier DHC-8-Q300 operator, Air Nelson.

April 2012: Air New Zealand (ANZ) will consolidate its services to China, adding a fifth weekly service to Shanghai from July 4 and serving Beijing as a one-stop destination in conjunction with Star (SAL) Alliance code share partner Air China (BEJ).

(ANZ) will also suspend the 2X-weekly, Auckland - Beijing service from June 30 to concentrate on growing the Shanghai service.

(ANZ) still considers Beijing to be an important and growing market but believes it can be served by the (BEJ) code share arrangement, which provides convenient connections between Shanghai and Beijing in both directions.

“(ANZ) has been operating to mainland China for more than five years and is highly committed to the potential of the market long term,” (ANZ) said, adding that (ANZ) recently appointed (ANZ) executive, Sandeep Bahl as its first-ever Head of Asia operations. “Under his guidance, we will focus our marketing and sales resources on the Shanghai region of around 14 million people as we seek to provide customers a daily service to and from this important gateway in China,” (ANZ) said.

Garuda Indonesia (GIA) and Auckland International airport (AKL), New Zealand have signed a memorandum of understanding (MOU) to explore the re-opening of direct service from Indonesia to (AKL). According to the (MOU), (GIA) will launch flights to the airport when market conditions and airplane availability make it feasible.

The agreement was inked during New Zealand Prime Minister, John Key’s trade mission to Indonesia. One of the goals of the trip was to step up cooperation between the two nations in the aviation sector.

Currently, there are no flights linking Indonesia and New Zealand. However, Air New Zealand (ANZ) is scheduled to begin seasonal, twice weekly flights to Bali in June.

“I was pleased to learn that (ANZ) will be restarting a service between Auckland and Bali this year,” Key said in his blog. “And I’m delighted to hear that (ANZ) is exploring options for collaboration with Garuda Indonesia (GIA) . . . New Zealand can help Indonesia build and run airports, and in general to improve its air connectivity.”

May 2012: Air New Zealand (ANZ) will increase capacity on the Auckland (AKL) - Perth (PER) route by more than >20%. From September 3, (ANZ) will replace a 234-seat 767-300 with a 304-seat 777-200ER on the route, which adds +70 seats on each flight and introduces lie-flat business (C) premier beds and premium economy (PY) to the route for the first time.

(ANZ) said (PER) is one of its fastest growing routes with a strong tourist market. More than >80% of the 30,000 customers (ANZ) carried from (PER) to (AKL) last year, were heading to New Zealand for leisure.

“Western Australia is the fastest-growing economy in Australia and we’ve seen double-digit growth in visitor arrivals from Perth over the past year, with particularly strong growth over the past quarter,” said (ANZ) Group General Manager Australasia, Bruce Parton.
The Auckland - Perth market is also benefitting from the Western Australia mining boom.

Rolls Royce (RRC) has successfully completed the first run of an upgraded version of the (Trent 1000) that will be the launch engine for the latest member of the 787 Dreamliner family, the 787-9.
The (Trent 1000) Package C program will provide 74,000lb thrust for the 787-9 Dreamliner airplane, which is due to enter service with Air New Zealand (ANZ) in 2014.

See video New Zealand Travel guide - -

June 2012: Air New Zealand (ANZ) has appointed Christopher Luxon as its next (CEO), succeeding Rob Fyfe at year end. Luxon has served as (ANZ)’s Group General Manager International since May 2011; he is a former President & (CEO) of Unilever-Canada.

(ANZ) said Luxon’s extensive international business experience with a strong commercial and customer focus will boost (ANZ) in an increasingly competitive global market.

"Christopher has world class strategic, commercial, leadership and stakeholder management capabilities proven across multiple markets. These have been highly evident to the (ANZ) board in the year that he has been with the company and we have seen him affect positive commercial outcomes in our toughest operating division," (ANZ) Chairman, John Palmer said.

(ANZ), the launch customer for Boeing (TBC)’s larger 787-9 variant, says the airplane appears to be on track for first delivery in the second quarter of 2014.

While multiple delays in the 787 program have resulted in numerous changes to delivery schedules, (ANZ) is “reasonably confident” in its latest projection, (ANZ) Program Director, Kerry Reeves said.

Despite this, (ANZ) has yet to announce a date for the 787-9’s entry into service (EIS).

(ANZ) now has to finalize the cabin specifications for its initial 787-9s, which Reeves says will be sent to Boeing (TBC) by September. While the configuration can be changed for later deliveries, (ANZ) currently does not plan to do so.

The 787s are unlikely to have the new premium economy (PY) seats that were delivered with (ANZ)’s 777-300ERs.

The first of the 10 787s (ANZ) has on order will be used to replace 767-300ERs on medium-haul international routes. The 787-9s also will enable new long-haul routes to be opened, but these have yet to be decided, says Reeves.

(ANZ) is not interested in converting any of its 787-9 orders to the proposed 787-10 version, which will provide more capacity, but, as Reeves notes, a shorter range that would restrict (ANZ)’s ability to assign the airplanes.

July 2012: Air New Zealand (ANZ), which now partners with Virgin Australia (VOZ) on trans-Tasman routes, launched a new route across the Tasman Sea on 1 July when (ANZ) connected its Auckland (AKL) hub with Maroochydore (MCY) on Australia’s Sunshine Coast in Queensland. Notably, this is the first time the Australian airport welcomes an international service. Flights operate seasonally, twice-weekly on Tuesdays and Sundays with A320s until 18 September. However, (ANZ) states that the season may be extended depending on the route’s performance. (ANZ)'s (CEO), Rob Fyfe commented: “Every year, almost a hundred thousand New Zealand leisure travellers arrive in Brisbane and make the 100 km plus drive north to the popular Sunshine Coast beach resorts such as Noosa, Coolum, Mooloolaba and Maroochydore. This new service will cut down their travelling time by eliminating the commute from Brisbane Airport which can be more than two hours.”

August 2012: Air New Zealand (ANZ) posted better than expected results for its 2012 financial year and while net profits dipped -12%, (ANZ) said it expects to more than double earnings for the coming year.

Net profits fell -12% to +NZ$71 million/+$56.9 million compared to +NZ$81 million for the previous year. Earnings before taxation rose +21% to NZ$91 million. Operating revenue increased slightly to NZ$4.5 billion from NZ$4.3 billion.

(ANZ) Chairman, John Palmer said cost containment and a strategy of lowering fares to increase load factors were significant factors in the results. “It’s a very volatile business, but we have been able to adapt our business compared to many,” (CEO), Rob Fyfe said.

Palmer said the doubling of earnings forecast for fiscal year 2013 was a “significant statement” and a reflection of the confidence the company has in its improvement initiatives and in the growth that will come from new alliances and partnerships with carriers such as Virgin Australia (VOZ) and All Nippon Airways (ANA).

In what Palmer described as “bucking the global trend,” (ANZ) also grew its overall cargo volume by +8.7% and saw a jump in cargo yields. (ANZ) has increased its cargo capacity by replacing five 747s with five 777-300ERs.

(ANZ) has 10 787-9s on order, the first on which is scheduled for delivery in the first half of 2014. Fyfe said they were close to finalizing their 787 Dreamliner cabin layout, which will have a three-class configuration consistent with their 777-300 cabin.


September 2012: Air New Zealand (ANZ) will invest more than >$100 million to upgrade the interiors and in-flight entertainment (IFE) on eight 777-200ER airplanes beginning in the second quarter 2014.

(ANZ) has selected Panasonic to replace the Rockwell Collins eTes (IFE) system with the eXlite (IFE), which it said offers improved resolution and touch monitors to all airplane seats as well as “significant” weight savings. The 777 business premier seats (currently Contour’s Upper Class Suite (UCS) seats) will be refurbished to the same specification as the (UCS) seat already installed on its 777-300ER airplanes. It will also completely replace its premium economy (PY) and its economy (Y) seats. Though the seat model and supplier for both premium economy (PY) and economy (Y) have not yet been finalized, an (ANZ) spokesperson said the new economy (Y) cabin product will include the "Skycouch" seat.

"With the introduction of the 777-300ERs over the past 18 months and the arrival of the 787-9s in mid 2014, the 777-200ER fleet will be upgraded to align the product across all of the three long-haul fleet types," (ANZ) Deputy (CEO), Norm Thompson said.

The 304-seat airplane operate on international routes and are expected to complete the upgrades in 12 months. (ANZ) said “a number of airplanes” will also have new (ANZ) livery applied during the same period. All work will be performed at its Auckland Engineering base.

October 2012: Air New Zealand (ANZ) will add capacity to San Francisco (SFO), Vancouver (YVR) and Los Angeles (LAX) from Auckland (AKL) beginning April 2013. Approximately 5,000 return seats will be added as it increases (AKL) service to (SFO) (5X-weekly to daily), (LAX) (12X-weekly to 2X-daily), and (YVR) (2X-weekly to 3X-weekly). It will operate the (AKL) - (YVR) service 5X-weekly from mid-December to the end of February and will continue to operate a third (LAX) flight one day a week during peak demand periods in July and October.

It expects the additional capacity to replace over >75% of the seats lost from the California market, following Qantas (QAN)’s cancellation of its (AKL) - (LAX) service on May 6.

1st ATR72-600 (SEE PHOTO - - "ANZ-ATR72-600 - 2012-10") of 7/5 orders, painted in striking all black livery, as part of (ANZ)’s support for New Zealand’s national rugby team, the All Blacks. Its first service flight next month will operate Christchurch to Wellington.

November 2012: Air New Zealand (ANZ) will cease Hong Kong - London Heathrow 777-200 service on March 4 as it focuses on returning its international network to profitability. It launched the service in October 2006 and has operated between 5X - 7X weekly. This has resulted in a "strategic agreement" with Air New Zealand (ANZ) which was made this month. This occurred with the exit of (ANZ) from its Hong Kong - London route. The agreement will see the two carriers code share on the Auckland - Hong Kong route, and on beyond too, giving (ANZ) greater access to Cathay (CAT)'s Chinese and even Indian networks, and give (CAT) greater access to (ANZ)'s routes throughout Australasia and the South Pacific islands. The two airlines will offer frequent flier reciprocity as well.

The Star (SAL) Alliance has elected Air Canada (ACN) President & (CEO), Calin Rovinescu as the new Chairman of the Star (SAL) Alliance Chief Executive board. He succeeds Air New Zealand (ANZ) (CEO), Rob Fyfe, who has held the post for the last two years. Fyfe plans to retire from (ANZ) at the end of the year after seven years.

“The (SAL) alliance needs careful steering in these testing times for the aviation industry and Calin is an excellent choice to lead the group through the challenges to come,” Fyfe said.

Rovinescu said he is looking forward to working toward deepening the (SAL) alliance and pursuing shared priorities — which include strengthening the global network, focusing on providing a seamless travel experience, and maintaining the loyalty of customers through superior service and convenience.

Airways New Zealand (Airways) has become the first air navigation service provider (ANSP) to be endorsed by (ICAO) for the design of Performance-Based Navigation (PBN) instrument procedures. (PBN) procedures are key to improving efficiency, capacity and safety, and designing and implementing them is both a challenge and an opportunity for (ANSP)s.

(PBN) has already been introduced at several locations in New Zealand, most notably the resort town of Queenstown (ZQN) on the South Island. Situated in the challenging terrain of the southern Alps, (ZQN) has a notoriously tricky approach and (PBN) has not only improved safety, but also facilitated an increase in the number of flight movements at the airport from five to 12 an hour. It makes it possible for jet operations to continue in a variety of weather conditions that would previously have closed the airport.

Airways’ aeronautical design and development team leader, Obrad Puškarica said, “Our team of procedure designers has a lot of experience in (PBN) design and implementation, both within New Zealand and from working with other countries all over the world. We’ve done many different types of (PBN) flight procedures for varying environmental and traffic conditions, weather conditions and mixed fleet capabilities.”

An Air New Zealand (ANZ) 777-300ER has been painted in a new livery advertising the film "The Hobbit" made in New Zealand. The airplane took the actors from London to Los Angeles and onto Auckland to attend the film's premiere in New Zealand - - SEE PHOTO - - "ANZ-2012-11 - 777-300ER HOBBIT."

See video of ANZ 777-300ER Hobbit landing in Middle Earth - -

December 2012: See video "THE HOBBIT AN UNEXPECTED JOURNEY" - -

March 2013: See video on New Zealand home of Middle Earth - -

April 2013: See video "PURE NEW ZEALAND" - -

May 2013: Air New Zealand (ANZ) is increasing capacity from Australia to Queenstown for the upcoming July - September ski season.

(ANZ) said production of its first of 10 787-9 airplanes is three weeks ahead of schedule at Boeing (TBC)’s Everett factory in Seattle, Washington. According to (ANZ), the horizontal stabilizer section of the airplane arrived this week from another USA-based Boeing (TBC) facility.

(ANZ) is the launch customer for the 787-9, which is longer than the 787-8 currently in operation. (ANZ) is scheduled to take delivery of the airplane between 2014 and 2017.

(ANZ) (CEO), Christopher Luxon described the 787-9 as a game changer for the airline. “Having 10 new long-haul airplanes enter our fleet over the next four years means we will be able to add more capacity and greater frequency to existing destinations, as well as explore new destination opportunities throughout the Pacific Rim,” he said.

(ANZ) expects its first 787-9 to operate on (ANZ)’s international network from mid-2014.


June 2013: Air New Zealand (ANZ) is further increasing its stake in Virgin Australia (VOZ) under an agreement to acquire a further +3% of the shares of (VOZ) and take its interest to almost 23%.

The agreement, which is subject to regulatory review, will further strengthen ties between the two carriers, although (ANZ) said it is not seeking a position on the board of Virgin Australia (VOZ) and has no intention of obtaining control of (VOZ).

In 2011, (ANZ) lifted its stake in (VOZ) from 14.99% to 19.99%.

Turkish Airlines (THY) and Air New Zealand (ANZ) signed a code share agreement on routes operated by both carriers connecting New Zealand and Turkey via Hong Kong and Los Angeles. Both are Star (SAL) Alliance members. “Passengers of both airlines will be offered travel to Turkey, New Zealand and Australia via the two most strategic gateways, Hong Kong and Los Angeles.

(ANZ) has unveiled a new airplane livery featuring the iconic official New Zealand fern mark as (ANZ) joins with Tourism New Zealand in a one-year partnership to promote travel to New Zealand in selected international markets - - SEE ATTACHED COMPUTER RENDERING - - "ANZ-2013-06 - NEW LIVERY." “The new livery will be progressively rolled out across the entire fleet from later this year,” (ANZ) said. “The majority of (ANZ)’s fleet will eventually feature the white version of the new livery and a limited number will feature the distinctive black version of the new design.”

According to (ANZ), the two partners will each invest more than >$10 million over the next 12 months in marketing to Australia, China, Hong Kong, Japan, North America, the United Kingdom, and Europe, as well as increased activity in emerging markets such as India and Indonesia.

(ANZ) is the launch customer for the 787-9, which is longer than the 787-8 currently in operation. (ANZ) is scheduled to take delivery of the airplanes between 2014 and 2017.

Boeing (TBC) has begun the final assembly on the 787-9 in Everett, Washington, USA. The longer fuselage sections are 20 ft longer than the 787-8. Boeing (TBC) said the 787-9 will carry +40 more passengers an additional +300 nautical miles, allowing airlines to grow routes first opened by the 787-8.

Air New Zealand (ANZ) is the launch customer for the 787-9, which is expected to operate on (ANZ)’s international network from mid-2014.

A320-232 (5629, ZK-OXA), ex-(F-WWBH), delivery.

July 2013: Air New Zealand (ANZ) and Virgin Australia (VOZ) will be allowed to continue their trans-Tasman alliance under a draft decision issued by the Australian Competition and Consumer Commission (ACCC) on July 10 2013. But the (ACCC) has made some significant changes to the routes that will be regulated with capacity and growth conditions.

The Commission has rejected the alliance partners’ request for all minimum capacity conditions to be lifted. Instead the (ACCC) has increased the total number of routes that will be subject to capacity conditions. In addition the (ACCC) will require both airlines to provide regular key performance data to allow the regulator to better track the public benefits and detriments the alliance delivers over the next three years.

The carriers are also likely to challenge the (ACCC)’s draft decision to grant re-authorization of the metal neutral alliance for just three years, rather than the five years requested, placing it at odds with the five year term granted to the rival Qantas (QAN) and Emirates (EAD) alliance in March 2013.

Christchurch Airport was bathed in blue light to welcome and celebrate the arrival of the new British Prince of Cambridge. Photos of the airport were among the first images splashed across the world (including the BBC). The airport is the only one in the country with the ability to light the exterior panels, both landside and airside, in any color desired. Until the day of the birth, the new terminal had been lit pink and blue, waiting with the rest of the world to see whether New Zealand would welcome a future king or queen.

Under the cover of darkness, Boeing (TBC) rolled out the first 787-9 from the 40-24 bay of the factory in Everett, Washington, in the late hours of 17 July, achieving a milestone event for the first stretched variant of the 787-8 with as little fanfare and public scrutiny as possible. The first of four flight test vehicles rolled out of the factory to travel to the nearby paint facility. Boeing plans to stage a formal roll-out ceremony after the 787-9 is painted for employees only. Afterwards, the 787-9 will begin a months-long flight test campaign and an entry into-service (EIS) with Air New Zealand (ANZ) in mid-2014.

The 6.07 m/20 ft stretch of the fuselage adds space for roughly +40 more seats compared to the 787-8, while increasing maximum take-off weight by +10% to 251,000 kg/553,000 lb and increasing top range by 3.95% to 15,800 km/8,500 nm.

The first 787-9, dubbed (ZB001), also will be powered by the new Package C version of the Rolls-Royce (RRC) (Trent 1000) engine, which increases thrust by +5.71% to 74,000 lb compared to the Package B now powering 787-8. General Electric will install the performance improvement package (PIP)-2 version of the (GEnx-1B) engine on the fourth flight test vehicle in the 787-9 program.

The movement of the first 787-9 out of the final assembly bay comes exactly on the schedule that Boeing (TBC) first proposed for the new variant three years ago. But it arrives against the backdrop of renewed concerns about the safety of the baseline airplane, following an onboard fire that damaged a parked and empty Ethiopian Airlines (ETH) 787-8 at London Heathrow airport on July 12th.

That incident remains under the investigation of the UK Air Accidents Investigation Branch (AAIB), which has not yet released an initial report.

Boeing VP Marketing, Randy Tinseth said on his blog on July 17 that the company is "confident the 787 is a safe airplane and we stand behind its overall integrity".

So far, the (AAIB) has only said there is no evidence of a direct causal relationship between the fire and the lithium ion batteries used to start the auxiliary power unit (APU).

Overheating lithium-ion batteries for the (APU) and the main batteries caused the US Federal Aviation Administration to ground the 787-8 fleet for four months earlier this year. Flights only resumed after Boeing (TBC) redesigned the battery cells and the battery enclosure, but the cause of the overheating batteries is still under investigation by the USA National Transportation Safety Board (NTSB).



August 2013: Air New Zealand (ANZ) has reported underlying earnings of +NZD256 million/$ 200 million for the financial year to Jun 30th, 2013 and in so doing delivering on its promise to more than double profits on the prior year. The net profit after tax was +NZD182 million/+$ 142 million, up +156% on the previous year.

The result, which is at the upper end of the guidance range provided in June 2013, follows up on the +300% improvement reported in the first half of Fiscal Year (FY) 2013 with all parts of the network contributing profitably.

Chairman, John Palmer stated the result places (ANZ) amongst the best performing airlines globally. “We are focused on further improving on this result in the 2014 financial year. Based on the airline’s forecast of market demand and fuel prices at current levels, early results and forward bookings are encouraging. Our expectation is that next year we will improve on this result.”

Boeing (TBC) has completed its first 787-9, as the company rolled the airplane out of its Everett, Washington, production facility. The 787-9 is 20 feet longer than the 787-8 and carries +40 more passengers. It also has a range that is +300 nm farther than the 787-8. Boeing (TBC) plans on flying the 787-9 for the first time later this summer.

Launch customer Air New Zealand is scheduled to take delivery of its first 787-9 in mid-2014.

September 2013: Air New Zealand (ANZ)'s first airplane to sport the airline’s new livery took to the skies. Operating on services to Auckland, Christchurch and Queenstown, the A320 features the new white livery with a black tail and the distinctive New Zealand Fern Mark in contrasting white. While most of the fleet will eventually sport this white version of the livery, (ANZ) will also have a small number of signature airplanes in an all black version. SEE PHOTO - - "ANZ-2013-09 - NEW LIVERY."

The European Aviation Safety Agency (EASA) has awarded Rolls-Royce (RRC) certification for its higher efficiency and thrust Package "C" variant of the (Trent 1000) engine, which will power the stretched version Boeing 787-9.

The first 787-9 rolled out last month and first flight is due imminently. The Package "C" engine is certified to 74,000 lb take-off thrust. It will power the first 787-9 to enter service, which will go to Air New Zealand in 2014. It will also power the 787-8.

A further upgrade to the engine, the (Trent 1000-TEN) will enter service in 2016. This later variant will be certified to 78,000 lb thrust and will be applicable to all variants of the 787, including the recently launched 787-10.

Rolls-Royce (RRC) Program Director Trent 1000, John Griffiths said: “Certification is another milestone in an ongoing (Trent 1000) program. We look forward to working closely with Boeing to achieve 787-9 first flight soon.”

The UK powerplant manufacturer said the (Trent 1000) has delivered a dispatch reliability of better than >99.9% since its service entry with the 787 in 2011: — a record for a wide body airplane engine.

October 2013: Air New Zealand (ANZ) has announced on October 4 that it will further increase its stake in alliance partner, Virgin Australia (VOZ) from around 23% to 25.9%. The two carriers cooperate closely on routes between New Zealand and Australia. (ANZ) is (VOZ)'s second biggest shareholder after the Virgin Group. Singapore Airlines (SIA) and Etihad Airways (EHD) are also major investors in (VOZ).

(ANZ) will conduct a proving flight October 5 from Auckland to McMurdo Sound in the Antarctic, using a Boeing 767-300 airplane, with the aim of establishing charter operations on behalf of Antarctica New Zealand.

If the proving flight is successful, (ANZ) charter flights could then be used to transport scientists between New Zealand and Antarctica. Antarctica New Zealand (a government body that manages Zealand’s Antarctic research station, Scott Base) and the USA Science Foundation co-operate to transport approximately 2,200 scientists between New Zealand and Antarctica each season.

New Zealand Foreign Affairs Minister, Murray McCully said the partnership between Antarctica New Zealand and (ANZ) would “fundamentally change our capability on the ice. Unlike the Royal New Zealand Air Force 757s, which currently fly to Antarctica, the Air New Zealand (ANZ) 767 can make a return trip without refueling.”

Antarctica New Zealand board Chairman, Rob Fenwick said (ANZ) operations could give New Zealand and the USA greater operational flexibility in their Antarctic programs.

If the proving flight (which will be crewed by (ANZ) staff and supported by Antarctica New Zealand staff) is a success, two additional (ANZ) charter flights could be operated to and from the ice runway this season. (ANZ) said that, despite the ice runway environment in Antarctica, its 767s did not require any modifications to operate there.

The (AJW) Group has formed a strategic supplier relationship with Air New Zealand (ANZ) to provide integrated airplane support services.

New Zealand’s Auckland Airport has integrated a new flow management system aimed at reducing fuel burn and carbon dioxide (CO2) emissions.

November 2013: The New Zealand government has sold 20% of Air New Zealand (ANZ)'s stock for NZ$365 million/$300 million, reducing its stake in (ANZ) from 73% to 53%. It sold just over >221 million ordinary shares at a price of $1.65 per share.

Trading in the airline's shares was halted for two days last week to allow the sale to go ahead. Announcing the transaction, Finance Minister, Bill English told the New Zealand Parliament: “This is the latest step in the government’s share offer program, which has now raised almost $4 billion, which has been placed in the Future Investment Fund for investing in priority public assets.”

He said the share sale had been specifically targeted at New Zealanders, with shares offered to New Zealand sharebrokers for on-selling to New Zealand nationals. He said the government was satisfied it had exceeded its target “of at least 85% New Zealand ownership.”

The government’s policy of selling off assets to reduce public debt and raise funding has unleashed a wave of criticism from many quarters. But English insisted: “We have no doubt that if (ANZ) had been 100% government-owned, it would not have performed nearly as well as it has.”

Air New Zealand (ANZ) has introduced daily flights between Christchurch (CHC) and Paraparaumu (PPQ), also known as Kapiti Coast Airport, located on the southern tip of New Zealand’s north island. The 350 km service, which launched on November 4th, will be operated by (ANZ) subsidiary, Air Nelson’s DHC-8-Q300s without competition. The same combination already serves Auckland from Paraparaumu with twice-daily flights.

(ANZ) (CEO), Christopher Luxon has confirmed its first 787-9 route will be between Auckland and Perth in Western Australia when (ANZ) takes delivery of the 787-9 next year. The route will be in cooperation with Virgin Australia (VOZ).

Luxon said the routes to follow will be from Auckland to Tokyo Narita and Shanghai Pudong.

The 787-9 will feature 18 seats in business premier class, 21 in premium economy and 263 seats in economy, which include 14 Skycouch rows.

(ANZ) is the launch customer for the 787-9 and has 10 airplanes on order. The 787-9 is 20 feet longer than the 787-8 currently in operation. (ANZ) is scheduled to take delivery of the 787-9 between 2014 and 2017.

See ANZ video of Just Another Day in Middle Earth - -

December 2013: Air New Zealand (ANZ) commenced seasonal (until April 26) twice-weekly services between Christchurch (CHC) and Perth (PER) on December 3rd. Operated on Wednesdays and Saturdays by the Star (SAL) Alliance carrier’s 234-seat 767-300s, (ANZ) will face no competition on the 5,050 km sector.

Air New Zealand (ANZ) introduced "Skycouch," an unusual product that allows passengers to purchase a row of three seats in the economy (Y) cabin and turn it into a bed or play area on long-haul flights, more than >2 years ago, but the only place (ANZ) has been able to sell it, is on its website.

See video on "Hobbitt Cast Views of New Zealand" - -

January 2014: Singapore Airlines (SIA) and Air New Zealand (ANZ) will join forces in a new alliance that will see the return of (ANZ) to Singapore after an absence of almost eight years.

(ANZ) will operate a daily frequency on the route using newly refitted Boeing 777-200ER airplanes, taking over five flights currently operated by (SIA) and adding two more.

For its part, Singapore Airlines (SIA) will start operating its Airbus A380 airplanes to Auckland, initially during peak seasons only, progressively replacing an existing Boeing 777-300ER daily service. Under the terms of the alliance, (SIA) will also continue to operate a daily Singapore - Christchurch service.

The alliance remains subject to approval from the Competition Commission of Singapore and the New Zealand Minister of Transport, but is expected to boost capacity operated by the two Star (SAL) Alliance carriers between New Zealand and Singapore by up to +30% year-round over time.

(ANZ) (CEO), Christopher Luxon said: “(ANZ) is on a positive growth trajectory with a clear focus on Pacific Rim destinations. An alliance with (SIA) clearly fits our business objectives of working with the right partners in the right markets to deliver seamless customer journeys.”

(ANZ) will code share across (SIA)’s network for the first time since 2007, giving passengers connectivity to (SIA)’s South East Asia, UK, Europe and Africa routes, as well as on the network of its regional subsidiary airline, SilkAir (SLK). (SIA) will code share on (ANZ)’s domestic network and to selected international destinations.

(SIA) (CEO), Goh Choon Phong said: “This alliance is another example of our commitment to the important Southwest Pacific market, and our commitment to the further enhancement of our network. This is a genuine win-win partnership, enabling (SIA) and (ANZ) to work together to provide more flight frequency and enhanced travel options to our customers.”

If the alliance is cleared by regulatory authorities, operations could begin in December.

Boeing (TBC) has flown the 787-9 Dreamliner to Auckland, home of launch customer, Air New Zealand (ANZ), marking the 787-9's international debut and longest flight since the robust test program began. SEE PHOTO - - "ANZ-2014-01 - 787-8 TO NZ."

The second of three 787-9s dedicated to the flight-test program, (ZB002) flew direct from Seattle's Boeing Field to Auckland International Airport, departing January 3 at 9:55 am local time and landing some 13 hours, 49 minutes later. The airplane is scheduled to continue on to Alice Springs, Australia, for testing in hot weather.

See Boeing video of 787-9 test airplane visiting ANZ Auckland - -

Boeing (TBC) picked the ideal location for the 787-9 Dreamliner to make its international debut in the flight-test program. The newest member of the 787 Dreamliner family flew nonstop from Seattle to Auckland (the longest 787-9 flight to date) to pay a visit to launch customer (ANZ).

“Boeing (TBC) is proud to bring the 787-9 to Auckland to show (ANZ) what the team has achieved,” said Mark Jenks, VP 787 Development, Boeing Commercial Airplanes (BCA). “With more than >150 flights since testing began in September, the test fleet continues to perform very well, and we look forward to delivering the first 787-9 in mid-2014 as promised.”

With the 787 set to become a staple of (ANZ)’s long-haul fleet, this visit was an opportunity for the airline’s technical and flight crews (FC) to get hands-on time with the 787-9. (ANZ) employees explored the airplane side by side with their Boeing partners (a unique opportunity not just to see their airplane, but to view a 787-9 configured for testing, unlike anything they would see in service).

“Having one of Air New Zealand’s 787-9s touch down on Kiwi soil for the first time is hugely exciting,” said Christopher Luxon, (CEO), (ANZ). “It’s a real reminder that we will soon welcome the first of these more modern, fuel-efficient aircraft into our fleet.”

The airplane, (ZB002), is the second of three 787-9s dedicated to the test program, which began last September. As the only 787-9 test airplane to be fitted with elements of the passenger interior, in addition to test racks and instrumentation, Boeing uses (ZB002) to test the environmental control system and other aspects of airplane performance. After the test program is complete, the airplane will be reconfigured for delivery to (NZ).

The 787-9 will complement and extend the 787 family. With the fuselage stretched by 6 meters/20 feet over the 787-8, the 787-9 will fly up to +40 more passengers an additional 555 km/300 nmi with the same exceptional environmental performance — 20% less fuel use and -20% fewer emissions than similarly sized airplanes. The 787-9 leverages the visionary design of the 787-8, offering passengers features such as large windows, large stow bins, modern (LED) lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.

Boeing is on track to deliver the first 787-9 to Air New Zealand in mid-2014. Twenty-six customers from around the world have ordered 402 787-9s, representing 39 percent of all 787 orders.

February 2014: Air New Zealand (ANZ) reported a net profit increase of +NZ$140 million/+$116.5 million for the first half of the 2014 financial year, up +40% from +NZ$100 million in the year-ago period. Revenue was down -1.6% to NZ$2.3 billion.

For the first six months of the 2014 financial year, (ANZ) Chairman, Tony Carter said its normalized earnings before taxation were +NZ$180 million, up +29% on the previous corresponding period. Statutory earnings before taxation were +NZ$197 million. Load factor increased to 84.3% LF and yield was 13.6 cents. Carter said that with stable fuel prices and a traditional seasonal earnings pattern of a stronger first half, (ANZ) expects to deliver a full-year result of normalized earnings before taxation in excess of >$300 million.

(CEO), Christopher Luxon said (ANZ) expects to deliver capacity growth of around +8% in the 2015 financial year as new Boeing 787-9s and 777-300s enter its fleet from the middle of this calendar year. “Additionally, new Airbus A320 and ATR72-600 airplanes will be growing capacity in our domestic network over the next year,” he said.

Luxon said a highlight of the first six months of the 2014 financial year was the continuing strength of (ANZ)’s alliances. “Through our alliance partnerships, we are able to offer more connections, frequencies and destinations than ever before. Alongside our 27 Star (SAL) Alliance partner airlines, we also have deep individual alliance relationships with Virgin Australia (VOZ) and Cathay Pacific (CAT), and look forward to working on our new relationship with Singapore Airlines (SIA),” he said.

(ANZ) and Singapore Airlines (SIA) recently unveiled a proposed new alliance which, subject to regulatory approval, would see the return of (ANZ) onto the Singapore route and enable customers to access code share travel on Singapore Airlines (SIA)’s extensive global network.
“Forming the right alliances with the right partners allows us to deliver on our strategy of profitable growth as a Pacific Rim airline,” Luxon said, adding that the carrier continues to be optimistic about the future of Virgin Australia (VOZ).

“Virgin Australia (VOZ) has a sound strategy and I look forward to helping (VOZ) to realize its potential when I join its board. We are confident that over the coming years (VOZ) can deliver consistent earnings performance.”

Air New Zealand (ANZ) is reviewing options for covering Latin America, which according to (CEO), Christopher Luxon remains the last white spot in (ANZ)’s network after plugging all its other holes with its new Singapore Airlines (SIA) partnership.

The forthcoming withdrawal from the South Pacific market by Aerolineas Argentinas (ARG) could leave an opening for Air NZ as Oneworld (ONW) Alliance partners Qantas (QAN) and (LAN) will be left as the only carriers crossing the South Pacific between Australasia and South America. (ANZ)’s new partnership with (SIA) could be extended to Latin America, providing feed for a potential new route which would otherwise not be viable.

But the economics of Australasia - South America routes are challenging and (ANZ) has not yet been able to find a suitable partner on the Latin American end. (ANZ) has been eager for some time to exploit New Zealand’s position between Asia and South America and connect an underserved and fast-growing market. Likewise, Auckland Airport has envisaged itself as a potential hub for the connections. There is still no easy solution for (ANZ).

A320-232 (5962, ZK-OXD), with sharklets, delivery - - SEE PHOTO - - "ANZ-A320-232-2014-02."

Gearing up for the final big screen journey to Middle-earth with the December release of "The Hobbit: The Battle of Five Armies," the third film in Sir Peter Jackson’s "The Hobbit Trilogy," an army of up to 75 keen Hobbit fans, their guests and around 40 high profile international media converged on New Zealand for The Hobbit Fan Fellowship, a six day Middle-earth adventure.

The fans gathered for a unique photo opportunity in front of Air New Zealand (ANZ), the official airline of Middle-earth’s Boeing 777-300ER airplane featuring characters from The Hobbit Trilogy.

Chosen from more than >140,000 entries following a global contest, The Hobbit Fan Fellowship visited a number of locations which appear in The Hobbit Trilogy and met behind-the-scenes creative talent involved in the films. The trip culminated with a visit to Sir Peter Jackson’s private studios in Wellington for an exclusive screening of The Hobbit: The Battle of the Five Armies, a production of New Line Cinema and Metro-Goldwyn-Mayer Pictures (MGM).

As well as being a once-in-a-lifetime experience for fans, the trip was also a significant coup for New Zealand’s tourism industry, with close to 40 media outlets from 12 countries traveling alongside the group.

The Hobbit Fan Fellowship is a collaboration between Air New Zealand (ANZ), Tourism New Zealand and Warner Brothers Pictures and its film-making partners, New Line and (MGM).

(ANZ) (CEO), Christopher Luxon, who was on hand to greet the fans at Auckland Airport, said the visit was a huge opportunity to showcase destination New Zealand to a substantial global audience. “These lucky fans had a fantastic itinerary planned, visiting some of New Zealand’s most stunning landscapes. The social media coverage generated by these fans and the stories by the media group produced something to be seen by millions of people around the world and hopefully it inspired more people to consider their own visit to Middle-earth,” said Mr Luxon.

“The Hobbit Fan Fellowship shows how the fantasy of Middle-earth can become reality in the form of a New Zealand holiday, with the presence of international media in New Zealand ensuring this story is told to a worldwide audience.

The Hobbit films have had a significant impact on New Zealand’s tourism industry. Both Air New Zealand and Tourism New Zealand have successful leveraged their partnerships with the films in recent years through marketing and sales campaigns and have seen visitor numbers grow as a result with more people citing The Hobbit Trilogy as a key factor in their decision to travel to New Zealand.

The Journey

The multi-national Fan Fellowship flew into Auckland, rated the third most liveable city in the world, and traveled on to Rotorua, New Zealand’s famous, long-standing tourist destination, where they were welcomed with a Maori cultural performance and traditional hangi banquet (cooked in an authentic underground oven).

Their next stop was to the Hobbiton Movie Set near Matamata in the Waikato region for a private tour of the picturesque shire which is the big-screen home of Bilbo Baggins.

Fans were treated to a feast fit for any Dwarf, before continuing their journey to Queenstown in the South Island the following day.
Queenstown is New Zealand’s adventure capital and the scene of countless battle scenes from "The Hobbit Trilogy." The Fan Fellowship not only had the chance to walk in the footsteps of their heroes through Paradise but also to visit the site of the Pillar of Kings, home of the Kawerau Bungy and zipline.

The journey ended in Wellington, New Zealand’s capital city and Peter Jackson’s home town, for the private screening of The Hobbit: The Battle of the Five Armies. Better known as “Wellywood,” Wellington is the home of Peter’s film-making operations, which has become a must-stop for film fans visiting New Zealand.

See video "The Making of ANZ Safety in Paradise" - -


March 2014: Air New Zealand (ANZ) will fly 10x-weekly, Auckland - San Francisco winter seasonal service from mid-December - March.

See video on 7 Things to know Visiting New Zealand - -

April 2014: Air New Zealand (ANZ) has renewed existing agreements with the Cook Islands government to operate non-stop services from Rarotonga to Los Angeles International and Sydney Kingford Smith. The two have collaborated in operating a weekly return service to Los Angeles since 2007 and to Sydney since 2010. “We are honored to renew these two four year agreements to operate to Los Angeles and Sydney from Rarotonga” (ANZ) Manager Pacific Islands, Peter Walsh, said.

(ANZ) was announced as the preferred bidder for the tender to provide the two long haul services in November following a comprehensive Cook Island government review of the underwritten contracts.

When after-dark flights commence into Queenstown, they will have been made possible by world-leading advanced navigation procedures introduced by air navigation services provider, Airways New Zealand.

New Zealand’s Civil Aviation Authority and Australia’s Civil Aviation Safety Authority have now approved the foundation safety case for after-dark flights into New Zealand’s premier tourist resort, Queenstown. Flights into the town are currently limited to daylight hours (this decision means Queenstown Airport can now start to assess demand for year-round evening services).

The new flight procedures introduced by Airways NZ are part of a global award-winning redesign of Queenstown airspace, completed in November 2012. The redesign was based on new Required Navigation Performance Authorization Required (RNP AR) approach & departure procedures (allowing jet airplanes to fly very precise paths in a range of weather conditions which has improved airspace capacity and operational efficiency at Queenstown Airport).

Airways NZ General Manager System Operator, Pauline Lamb said Airways NZ’s vast expertise and technical excellence in the field of Performance Based Navigation (PBN) is a key enabler for introducing after-dark flights into Queenstown. “Airways NZ Southern (PBN) project, in which (RNP AR) procedures were introduced, is meeting the challenge of delivering a much safer and far more efficient air traffic management (ATMK) system in the extreme terrain surrounding Queenstown,” Mrs Lamb said.

“In Queenstown, we now have one of the most sophisticated air navigation control systems in the world. It’s reaping rewards for travellers with a reduction in delays and diversions, and pilots (FC) and air traffic controllers (ATC)s are enjoying the less complex airspace environment,” she added.

Airways NZ controllers in Queenstown Tower can now manage more than double the air traffic (up to 12 airplanes per hour, compared to the previous five per hour) with no requirement to tactically separate arrivals from departures. The Southern (PBN) project utilizes satellite (GPS) technology, rather than traditional ground-based radar, to maximize the use of airspace.

Mrs Lamb said Airways NZ chose Queenstown as the first airport in its nationwide deployment of (PBN) because of increasing air traffic levels, the importance of Queenstown tourism to New Zealand’s economy, and the notorious difficulty of the surrounding airspace and weather conditions. Airways NZ aims to complete a nationwide rollout of (PBN) procedures by the end of 2015.

Airways NZ won an international award for the Southern (PBN) project in February 2013 (taking out the prestigious Jane’s (ATC) Award for Operational Efficiency ahead of 70 entries from aviation companies around the world.

Queenstown Airport Corporation, (CEO), Scott Paterson said evening flights realistically won’t be introduced before winter 2016 (however, the airport company now has a clear roadmap of the technology, infrastructure and operational steps required to enable it to happen).

Boeing rolled out (ANZ)'s first 787-9 with the airplane sporting a new "all-black" livery and New Zealand's official fern symbol - - SEE ATTACHED PHOTOS - - ANZ-2014-04-787-9 ROLLOUT-A/B." The 787-9 can carry up to +40 more passengers an additional +300 nautical miles/555km over the 787-8. The debut route for the 787-9 will be Auckland - Perth in October this year.


(ANZ) currently operates 49 airplanes to 18 countries and serves 53 destinations, 102 routes and 538 daily flights.

May 2014: Air New Zealand ((IATA) Code: NZ, based at Auckland International) (ANZ) will operate its last 747-400 flight on September 10 between San Francisco, California and Auckland International. A formal farewell flight between Auckland and Sydney Kingford Smith is also scheduled for September 6.

(ANZ)'s last 747-400s are (26910, ZK-NBV) and (24896, ZK-SUH), which collectively average 19.3 years of age. The quadjets, currently used on flights to Brisbane International, Nadi, Rarotonga, San Francisco, and Sydney, will be replaced with two 777-300ERs set to arrive in July and October of this year.

(ANZ) 1st 787-919 (ZB001, KZ-NZE), completed its first flight from Paine Field, Washington State on May 26th. It was taken to altitude of 39,000 ft and a speed of 360 kt//667 km/hr during the 3hrs 10 minute flight.



June 2014: Air New Zealand (ANZ) signed a firm order for 13 Airbus A320 family neo airplanes and one A320ceo. The order, valued at $1.6 billion at list prices, marks the first time (ANZ) has bought the A321 and the neo, although (ANZ) first ordered A320s in 2009.

The deal, signed by (CEO), Christopher Luxon, is for one A320ceo, 10 A320neos and three A321neos. The ceo will be delivered in 2015, while the neos will be delivered between 2017 and 2019.

Luxon said an engine choice would be made by the end of the year. He added that the +15% better fuel efficiency of the neos, versus current models would equate to savings of around -NZ$140,000/-$119,000 a year.

(ANZ) took delivery of the first of two new Boeing 777-300ERs from Air Lease Corporation (ALE). A second new 777-300ER is scheduled for delivery this fall. Both 777-300ERs are from (ALE)’s order book with Boeing.

The (FAA) and the European Aviation Safety Agency (EASA) have certified the Boeing 787-9 Dreamliner for commercial service. Each agency granted Boeing (TBC) an Amended Type Certificate for the 787-9, certifying the design complies with aviation regulations and is safe and reliable. To earn certification, Boeing said it undertook a comprehensive test program with five airplanes and more than >1,500 hours of flight testing, plus ground and laboratory testing. “Certification is the culmination of years of hard work and a rigorous flight-test program, that started with the 787-9's first flight last September,” Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said. “With this validation that the airplane is ready for commercial operations, Boeing (TBC) (along with our airline and leasing customers) now look forward to introducing the newest member of the 787 Dreamliner family to passengers around the world.”

The (FAA) also granted Boeing (TBC) an Amended Production Certificate, validating that the Boeing production system can produce 787-9s that conform to the design. (TBC) said it is now in the final stages of preparing for the first 787-9 delivery to launch customer Air New Zealand (ANZ).

(ANZ) (CEO), Christopher Luxon has confirmed that it is expecting the first Boeing 787-9 delivery in early- to the end of-July.

July 2014: Etihad Airways (EHD) will soon perform all scheduled and non-scheduled line maintenance on Air New Zealand (ANZ) airplanes in Melbourne at its Tullamarine Engineering facility. (EHD) and (ANZ) have agreed to provide reciprocal line maintenance services in Melbourne, Australia, and Los Angeles, California.

(ANZ) already performs line maintenance for (EHD) in Los Angeles. Maintenance services performed in Melbourne and Los Angeles may include transit, daily and weekly checks, scheduled Engineering services and fault repairs for the airplane systems and passenger cabins.

Boeing (TBC) has confirmed delivery of the first 787-9 to Air New Zealand (ANZ), the launch customer for the larger version of the 787 Dreamliner that received (FAA) and European Aviation Safety Agency (EASA) certification last month.

(ANZ) has 10 787-9s on order for delivery through 2017. The 787-9 is 20 feet longer than the 787-8 currently in operation. The Auckland-based airline is configuring the 787-9 with 18C business class seats, 21PY premium economy seats and 263Y economy seats.

Separately, Boeing (TBC) announced that 787-9 flight test airplane (ZB001) will be on static and flying display at the Farnborough Airshow from July 14 - 18.

A320-232 (6182, ZK-OXF), ex-(F-WWBU), delivery.

August 2014: Air New Zealand (ANZ) has again boosted its annual profit for the fiscal year through June 30, which will help (ANZ) accommodate the significant investments it is making in fleet growth and lounge upgrades.

(ANZ) reported a net profit of +NZ$262 million/+$219.5 million, up from +NZ$181 million in the previous year, while its pre-tax earnings of NZ$357 million were up +40%. This is the third consecutive year in which (ANZ) has increased profits.

(ANZ) is planning to spend NZ$2.2 billion on fleet upgrades during the next four years, and it will also spend NZ$40 million over the next year on a program to upgrade or build new airport lounges.

(CEO), Christopher Luxon said fleet spending, in particular, represents “an unprecedented level of investment” for (ANZ). He noted that an “incredibly strong” operating cash flow means this is “quite digestible” financially and “not a stretch in any way.”

The relative strength of the New Zealand dollar has caused a few headaches on the revenue side, particularly on routes to Australia, Luxon said. However, the stronger dollar has also helped reduce costs, so overall there has been “only a slight impact” from unfavorable foreign exchange movements.

The transTasman routes to Australia have generally been performing well, and the Air New Zealand (ANZ) - Virgin Australia (VOZ) partnership accounts for a 52% share of this market, Luxon said. He added that further growth opportunities exist, and (ANZ) is planning for about +3% capacity growth per year on Australian routes.

(ANZ)’s lounge upgrade program will include refurbishing its flagship facilities at Auckland and Sydney airports, and other lounges in Australia and New Zealand will also be improved. Within the next few months, (ANZ) plans to open a lounge in the Auckland domestic terminal specifically for its regional turboprop gates.

(ANZ)’s fiscal year 2014 results were driven by passenger revenue increasing +4.9% to NZ$3.9 billion. Traffic climbed +1.2% on a +0.7% capacity increase, resulting in load factor rising +0.5 points to 84.1% LF. Capacity is expected to rise by +6% in the fiscal year through June 2015, thanks mainly to fleet expansion.

Yield was up +1% overall in fiscal 2014, although excluding the effects of foreign exchange movement, it would have increased by +3.3%.

(ANZ) and Singapore Airlines (SIA) have been given the go-ahead by both Singaporean and New Zealand regulators to pursue their proposed alliance aimed at boosting existing capacity between the two countries by up to +30% annually.

The New Zealand Ministry of Transport said that over the ensuing four years, (ANZ) and (SIA) would need to demonstrate that the alliance has delivered real benefits to consumers, and that it has not had an adverse impact on competition in other markets.

According to the terms of the agreement, (ANZ) will launch daily services between Auckland International and Singapore Changi using newly refitted 777-200ER jets, taking over five flights currently operated by Singapore Airlines (SIA) and adding two more weekly flights, increasing the frequency to daily.

In return, (SIA) will begin deploying its 471-seat A380-800 on flights to Auckland from October 27, progressively replacing an existing daily service with the smaller 279-seat 777-300ER.

On some alliance routes (including to India, Indonesia, Malaysia, Thailand, Vietnam, Philippines, South Africa, and the United Kingdom) the parties will code share and coordinate pricing, while on others, cooperation will only extend to code sharing.

(ANZ) brought forward its maiden 787-9 commercial flight to August 9th. 787-9 (34334, ZK-NZE) was deployed on (ANZ)'s Auckland International to Sydney Kingford Smith route, with the return flight scheduled for Sunday, August 10. (ANZ) had previously planned to introduce the 787-9 on October 15 with flights to Perth International.

(ANA) - All Nippon Airways, the 2nd operator of the 787-9 (34522, JA830A) deployed its 1st 787-9 into revenue service on August 7 with flights from Tokyo Haneda to Fukuoka, Matsuyama, and Osaka Itami.

(ANZ) plans to boost its service on North American routes next year, using airplane capacity freed up by Boeing 787 deliveries. (ANZ) will add a seasonal 3rd daily flight to its Auckland to Los Angeles route, flying Boeing 777-200ERs. The arrival of 787-9s and their introduction on existing routes, gives (ANZ) flexibility to increase frequencies or add new routes with its other airplane types.

(ANZ) typically operates newer 777-300ERs on its Los Angeles flights, although the 777-200ERs are undergoing a refurbishment program to give them a similar cabin product.

The 3rd daily Los Angeles flight will be operated between April and October, increasing capacity on the route by +20%. (ANZ) is also increasing its seasonal flights on its Vancouver route, which will boost capacity by +10%.

Meanwhile, (ANZ) has retired its last 747-400. Its final flight departed San Francisco for Auckland on September 10. This airplane has been sold to a company that intends to lease it out to another airline customer.

(ANZ)’s 747-400 fleet numbered 8 airplanes at 1 point. The 2nd-to-last airplane left the fleet on July 16, and was sold to a California-based buyer. The final 2 747-400s were used on the San Francisco route, and have been replaced by 2 leased 777-300ERs.
SEE ATTACHED - - "ANZ-2014-09 - 747 RETIRES-A/B/C."

Airways New Zealand’s deployment of a leading-edge integrated air traffic flow and arrival management system, has resulted in the lowest in-flight delay minutes, ever recorded across New Zealand’s four largest airports. The -52% decrease in in-flight delay minutes was recorded for domestic and international flights into and out of Auckland, Christchurch, Wellington, and Queenstown (comparing the average 2,764 minutes of delay for May, June and July 2014, to the average monthly minutes from the same quarter in 2012 and 2013).

These results are a direct outcome of integrating Barco’s (OSYRIS) Arrival Manager (AMAN) tool into Airways’ Collaborative Flow Manager (CFM) system in April 2013, for arrivals into Auckland Airport, said Pauline Lamb, Chief Operating Officer (COO) at Airways.

“These excellent in-flight delay reductions are evidence that this world-class system is delivering real savings to our airlines, both financial and environmental, without impacting on safety or service delivery,” Mrs Lamb said.

“We estimate that the Arrivals Manager system, aside from significantly reducing inflight delay, has reduced >1,770 tonnes of CO2; emissions for our customer airlines and saved them at least -$735,000 in fuel since July 2013. (CFM)/(AMAN), together with other technology and service improvements we’ve made, has saved our airlines >11 million kilograms of fuel in 2013 to 2014 (this equates to about -$15 million of fuel savings,” she added.

The (AMAN) tool was integrated into Airways’ (CFM) solution to eliminate air traffic bottlenecks and holding patterns at Auckland Airport (one of Australasia’s busiest international airports). Airlines interact directly with the (CFM) system to prioritize their flights according to their own business needs (subject to available slots, runway capacity and trajectory predictions updated by the system in real time). At Auckland Airport, 35% of air traffic is international and 65% is domestic.

“Together with our airlines, we’re making big improvements in flow management and sequencing of flights into Auckland. The benefits are significantly lower carbon emissions, reduced fuel burn, and far fewer delays, if compared alongside European measures,” Mrs Lamb said.

In-flight delay times into Auckland are measured for the full flight (wheels off the runway, to wheels on the runway. Other air navigation service providers around the world have different measurements, such as only measuring delays against scheduled departure time, and taking little account of in-flight holding.

Air New Zealand (ANZ) has slightly delayed plans to introduce the 787 on additional long-haul routes. (ANZ) was expecting to use the 787 on its Tokyo route in November, but is now aiming for early December.

The Auckland to Shanghai route will also switch to 787s in December.

(ANZ) is due to receive its 2nd 787-9 this month, and its 3rd is expected in October. (ANZ) is using its 1st 787 on the daily Auckland to Perth route, and plans to also use 787s on flights to Sydney until they transfer to the Tokyo and Shanghai flights.

September 2014: The recently approved alliance between Air New Zealand (ANZ) and Singapore Airlines (SIA) will officially launch January 6, 2015, marking the return of the New Zealand carrier to Singapore after an absence of almost eight years.

Code share flights on both airlines’ services between New Zealand and Singapore will go on sale Thursday, September 25th. Each airline will operate one return service a day on the Auckland to Singapore route, with Singapore Airlines (SIA) also operating a daily return service between Christchurch and Singapore.

Air New Zealand (ANZ) will operate newly refurbished Boeing 777-200 airplanes on the Auckland to Singapore route, while (SIA) will operate Airbus A380s on the route during the Northern Winter operating season, reverting to 777-300ERs during the Northern Summer. (SIA) will continue to operate retrofitted Boeing 777-200ERs on the Singapore to Christchurch route.

The main goal of the alliance (which was approved by the New Zealand Minister of Transport last month, following clearance from the Competition Commission of Singapore) is to boost capacity and frequencies between New Zealand and Singapore by up to +30% year-round over time.

(ANZ) (CEO), Christopher Luxon said: “By working closely together, we hope we can further stimulate the market and drive visitor numbers from both ends of the route.”

(SIA) (CEO) Goh Choon Phong said the alliance was “a clear example of how our two airlines can do more by working together than we could do individually,” and reinforced the Singapore carrier’s commitment “to the important SW Pacific market.”

China Eastern Airlines (CEA) is scheduled to launch direct flights between Shanghai and Auckland, New Zealand on December 9. The new route will use Airbus A330-200 airplanes to make 4 round-trip flights each week on Tuesdays, Thursdays, Saturdays and Sundays.

From January 19 to March 8 of next year, the service will rise to 7x- weekly, it said. The new service will add an extra 47,000 seats on the route. Looking at the year ending June 2014, almost 36,000 visitors arrived from Shanghai, an increase of +20% when compared to the same period the year before.

Currently, Air New Zealand (ANZ) is the only carrier providing a scheduled service between Shanghai and Auckland. Guangzhou-based China Southern Airlines (GUN), the country's largest airline by fleet size, operates direct flights between Guangzhou and Auckland.

China is New Zealand's 2nd-largest tourist market after Australia.

(ANZ) has sold its wholly-owned Altitude Aerospace Interiors subsidiary to (AIM) Aviation, a UK-based airline interiors design, engineering and manufacturing company. “With rapid growth forecast in airplane deliveries over the coming 5 years and premium airlines increasingly demanding bespoke interior solutions, this is an exciting opportunity for Altitude, which will gain access to (AIM) Aviation’s new UK based state-of-the art manufacturing facilities,” (ANZ)'s Chief Financial Officer (CFO) Rob McDonald, said.

The parties intend to complete the transaction at the end of this month; the details of which remain confidential.

Established in 2008, Altitude Aerospace Interiors employs a work force of about 100 staff and is primarily involved in the design, engineering and supply of cabin interiors for commercial airlines and (VIP) Boeing business jets.

(ANZ) currently operates 48 airplanes, and travels to 18 countries, 52 destinations, on 100 routes and 556 daily flights.



SEE 787 VIDEO Sydney (SYD) to Auckland (AUK) - -

Now you know how to get there, see what you can do when you get there by watching video "The Ultimate Adventure Package" - -

October 2014: As the official airline of Middle-earth, Air New Zealand (ANZ) has gone all out to celebrate the third and final movie in The Hobbit Trilogy ("The Hobbit: The Battle of the Five Armies"). Starring Elijah Wood and Sir Peter Jackson; please view "The Most Epic Safety Video Ever Made." Included are special cameos by Sylvester McCoy, Dean O'Gorman and "Weta Workshop" co-founder, Sir Richard Taylor. Directed by Taika Waititi. Enjoy!

Also see the behind the scenes of the ANZ Hobbit Safety video - -


and 777-300ER Seat Guide:

November 2014: News Item A-1: Air New Zealand (ANZ) and Air China (BEJ) have signed a Statement of Intent as part of Chinese President Xi Jinping's state visit to New Zealand, that will pave the way for a strategic alliance on services between China and New Zealand.

The proposed alliance between the two national flag carriers and Star (SAL) Alliance partners would see Air China (BEJ) operate a new direct Beijing - Auckland service in addition to (ANZ)'s existing Shanghai - Auckland service. The alliance remains subject to regulatory approval.

In addition to a new route, an alliance between the carriers would bring significant benefits to customers traveling in both directions including better network connections in both China and New Zealand and increased frequency of flights.

(ANZ) (CEO), Christopher Luxon says a deeper bilateral agreement between the two airlines would help to facilitate both business and tourism links between the two countries. "China is New Zealand's second largest inbound visitor market and we expect interest in visiting New Zealand to continue to grow amongst Chinese travelers."
"However, China remains a challenging market for us to operate to. Working with a strong, well respected home market carrier like Air China (BEJ) would give us a huge opportunity to convert this potential growth, while jointly offering the additional capacity to support it."

"New Zealand businesses and travelers would also benefit from a direct link to China's capital and tourist attractions of Beijing."

Air China (BEJ) President, Song Zhiyong said (BEJ) is committed to being a global hub carrier and alliances and partnerships are an important way to expand its international network. "In the past three years we have witnessed double digit annual growth in the number of Chinese outbound tourists. New Zealand is one of the most important markets for outbound travel from China and (BEJ) is confident about the promising future of this market, particularly considering the airline's close ties with (ANZ), an innovative airline full of vitality and dynamism."

Following the signing, the airlines will progress to discussions with a view to reaching an agreement early next year, which can then be filed for regulatory approval.

News Item A-2: Air New Zealand (ANZ)'s third 787-9 Dreamliner has been spotted at Boeing's Everett factory just outside Seattle as its delivery date nears. The 787-9, registration (ZK-NZG), took its first test flight on Monday November 17. According to flight tracking websites, the test flight lasted 109 minutes, with the airplane departing from and arriving at Paine Field.

Unlike its all-black sister ship (ZK-NZE) that is already in service, (ZK-NZG) features the New Zealand flag carrier's new standard mainly-white livery also found on (ANZ)'s second 787 Dreamliner (ZK-NZF).

(ANZ)'s first two 787 Dreamliners currently operate from Auckland to Perth and Sydney.

According to schedules filed in global distribution systems, (ANZ) was due to commence 787-9 services between Auckland and Tokyo from December 2, while Auckland - Shanghai services were expected to transition to the 787 Dreamliner from December 14.

(ANZ) operated a one-off 787-9 service to Shanghai on November 4.

(ANZ) has 10 of the larger 787-9s on order. (ZK-NZG) was the final 787 Dreamliner due to be delivered in 2014/15, according to a slide presentation accompanying the company's full year financial results in August.

News Item A-3: Air New Zealand (ANZ) plans to retire its 19-seater fleet and bring in additional larger turboprops, as part of a major overhaul of its regional operations.

For your pleasure, see video on "The Hobbit Fan Fellowship Highlights

December 2014: News Item A-1: The travel industry generally, and airlines in particular, are in a world of pain. Volatile fuel pricing, intense competition, security concerns and a focus on the environmental impact of air travel have resulted in airline profitability taking a nosedive. Indeed the International Air Transport Association (IATA) predicts that global airlines will only see a +2.4% net profit this year. While that is better than the year before, it pales in comparison to the double digit margins enjoyed a generation or so ago.

Airlines have dabbled with both low budget (think Ryanair (RYR) and the other "pay for everything" budget airlines) and ultra premium (Singapore Airlines US$23,000 Singapore to New York suite-in-the-sky being a good example) services. But while these approaches have gone some way to stabilizing airlines fortunes, they haven't really moved the needle.

Increasingly airlines are looking to have a far more direct and real-time connection with their customers and prospective customers. This aim is shown both by airlines' increasing social media involvement, and their increasing propensity to partner with third party technology vendors.

Air New Zealand (ANZ) is a good example of an airline that has fostered a strong social media presence. Generally ranked in the top two or three of the Airline Industry Social Rankings, the company has leveraged New Zealand's clean, green image, as well as the fact that both the "Lord of the Rings" and "Hobbit" trilogies were filmed there to create a series of in-flight safety videos that have been the launch pad for intense social media chatter. From viral Instagram campaigns, to competitions offering fans a trip to Middle-earth filming locations, the Air New Zealand (ANZ) social hub is an exemplar for airline social engagement.

News Item A-2: Air New Zealand (ANZ) is further boosting its Boeing 787-9 fleet with orders for two more of the type, which will bring its total to 12 by the end of 2018 - - SEE ATTACHED - - "ANZ-2014-12 - PLUS 2 787-9 JETS."

The two additional airplanes are options (ANZ) has converted into firm orders. They will be for fleet growth rather than replacement, an airline spokeswoman said. After the latest deal, it will still have another six 787-9 options.

(ANZ) was the launch customer for the stretched 787-9 variant, receiving its first airplane in July. It recently received its third 787-9.

The two converted orders are slated for delivery in 2017 and 2018. The updated delivery schedule sees three 787s due in the second half of 2015, two in 2016, three in 2017 and one in 2018.

The latest orders are possible due to (ANZ)’s strong financial results, (CEO) Christopher Luxon said. “As the airline’s commercial performance continues to improve, we are focused on reinvesting our profits directly back into the business on products, services and fleet.”

Regarding the 787, “the entry-into-service (EIS) program has gone very smoothly and we’ve been incredibly pleased with the airplane’s performance,” Luxon said.

While Luxon made no comment about new routes, (ANZ) is believed to be close to making an announcement about launching a 787 flight to an additional North American destination. Chicago, Las Vegas or Houston are the most likely options. (ANZ) already flies to Los Angeles, San Francisco, and Vancouver.

March 2015: News Item A-1: Auckland International Airport said international passenger numbers through New Zealand's busiest gateway rose +5.4% last month, as the later timing of Chinese New Year led to a surge in travelers from China.

There were 726,529 international arrivals and departures in February, including transits, up from 689,063 a year earlier, the airport company said in its monthly traffic update. Domestic passenger numbers rose +3.3% to 590,524.

Arrivals from China soared 85% to 48,901, overtaking the UK as the third-largest source after Kiwis traveling across the border, and Australians. The number of New Zealanders slipped -1.5% to 112,928, and Australians fell -3.6% to 65,017. Visitors from the USA rose +5.3% to 26,121, while those from the UK fell -2.2% to 24,642. Passengers from India also surged (up about +50% to 5,429, to be the ninth largest source of visitors.

Chinese New Year fell in February this year, and January in 2014.

The airport company said international airplane movements rose +1.5% to 3,635 last month, while domestic movements rose +2.2% to 8,501.

The airport's 24.9%-owned Queenstown Airport Corporation had a +38% increase in international passengers to 30,382 and a +5.1% gain in domestic passengers to 92,357.

Its quarter-owned North Queensland Airports Group reported a -9.7% drop in domestic passengers to 66,396 at Mackay airport, while at Cairns airport, international passengers rose +8.3% to 56,468 and domestic rose +8.6% to 293,285.

Shares of Auckland Airport fell -0.2% to AU$4.47 and have gained +16% in the past 12 months. The stock is rated a "sell" based on the consensus of eight analysts surveyed by "Reuters" with a median price target of AU$4.09.

News Item A-2: Air New Zealand (ANZ) and Air China (BEJ) have released details of a proposed alliance on services between China and New Zealand. The alliance, subject to regulatory approvals, would see Air China (BEJ) introduce a daily direct service between Beijing and Auckland. (BEJ), the Chinese flag carrier would also continue to code share on (ANZ)'s daily, Shanghai - Auckland service, which will be operated exclusively by Boeing 787-9 Dreamliner airplanes from August 24.

The proposed alliance would further open up Beijing as a new market to and from New Zealand and the airlines aim to almost double sustainable capacity between China and New Zealand, while delivering a range of other benefits to travelers including greater frequency and network connections.

Air New Zealand (ANZ) Chief Executive Officer (CEO), Christopher Luxon said the alliance with Air China (BEJ) would see two home carriers with complementary strengths at each end of the route working together to drive traffic in both directions. "This proposed alliance brings New Zealand and China closer, as our two countries enter the next phase of what is a very strong relationship, focused on mutual growth and respect. By connecting the Chinese capital with New Zealand for the first time in three years, we would provide tourists and business travelers with unparalleled air connectivity between and within each home market," said Mr Luxon.

"Airlines play a vital role in facilitating growth through crucial people to people connections and the movement of high value cargo. I am proud to be able to work with our long term Star Alliance (SAL) partner, Air China (BEJ), to ensure these important links make commercial sense, are sustainable and are in the interests of consumers and the wider economies."

(BEJ) Chief Executive Officer (CEO) Song Zhiyong said the relationship between China and New Zealand is entering into a new phase with significant achievements having already been made in economic development and political, as well as cultural exchanges in recent years. "We are committed to working with our Star (SAL) Alliance partner, Air New Zealand to provide better air connectivity between China and New Zealand, in order to meet the growing demand from travelers in both markets," said Mr Zhiyong.

"The proposed alliance with (ANZ) allows both flag carriers to build a sustainable air service between Beijing and Auckland, and supplement the existing connectivity between China and New Zealand. This service, along with (ANZ)'s Shanghai - Auckland service, will provide greater benefits to travelers in both countries in the coming years, - - an outcome which we will feel very proud of."

Subject to regulatory approvals, alliance services could commence as early as December 2015.

News Item A-3: Air New Zealand (ANZ) will complete the retirement of its fleet of 737-300s this year. (ANZ)'s remaining four 737s are to be gone by September of this year replaced by an incoming fleet of A320ceo and A320neo twinjets.

The 737s, which collectively average 15.8 years of age, are currently used on domestic flights connecting Auckland International, Christchurch, Dunedin, and Wellington.

Although three of them have already been scrapped, (ANZ)'s retired 737-300s have gone on to find homes all over the world with some in service with BoA - Boliviana de Aviación (LAB), Magnicharters (MAM), Nauru Airlines (NAU), Vista Georgia (AJD), and VivaAeroBus (VVS).

April 2015: News Item A-1: Air New Zealand (ANZ)opens its fifth North American city with 5x-weekly, Auckland - Houston Boeing 777-200 service in December.

News Item A-2: Air New Zealand (ANZ) will no longer operate longhaul flights out of Christchurch following an announcement that its seasonal services to Tokyo Narita have been terminated.

(ANZ) had offered a summer-only service to the Japanese capital but has discontinued the flight effective immediately. (ANZ) said it would compensate for the loss by increasing its Auckland International - Tokyo Narita frequency.

As such, with the national carrier's withdrawal from the intercontinental market, Christchurch's longhaul operators are now limited to China Airlines (CHI), Emirates (EAD), and Singapore Airlines (SIA).

News Item A-3: Air New Zealand (ANZ) inked the order for 10 A320neos and three A321neos last year. Pratt & Whitney (PRW) announced that (ANZ) had selected (PW1100G) geared turbofan engines to power the airplanes. (CFM) International (LEAP-1A) engines are also a choice on A320neo family airplanes.

(ANZ)’s agreement with (PRW) also includes fleet management support services for up to 16 years. Deliveries of (ANZ)’s A320neo family airplanes are scheduled to begin in 2017 and continue through 2019.

May 2015: News Item A-1: Air New Zealand (ANZ) begins 5x-weekly, Auckland - Houston 777-200 service in mid-December.

News Item A-2: Pratt & Whitney (PRW) has named Christchurch Engine Center, New Zealand as one of the first facilities in its Geared Turbofan engine Maintenance Repair & Overhaul (MRO) network to provide maintenance and overhaul services for the (PW1100G-JM) engine. Christchurch is a joint venture (JV) between (PRW) and Air New Zealand (ANZ).

News Item A-3: See video - - "ANZ-215-05 - What a Wonderful World" -

June 2015: Air New Zealand (ANZ) and Air India (AIN)/(IND) have reached a code share agreement that will see the airlines connect their networks primarily via Australian gateways.

August 2015: News Item A-1: Air New Zealand (ANZ) has reported a net profit of +NZD327 million/+$213 million for the financial year ended June 30, 2015, an increase of +24% over the NZD 263 million, reported for the previous financial year.

(ANZ) said that capacity growth supported by strong demand, cost efficiencies, and lower fuel prices had contributed to “significant earnings growth.”

(ANZ) board Chairman, Tony Carter said, “our strategic initiatives over the past three years have positioned us well to take advantage of market dynamics, which have contributed to these results. We indicated at our interim result that lower fuel prices and current sales momentum have strengthened the company’s outlook, and this has seen the delivery of a record annual result.”

Operating revenue was up +6% for the year, reaching just shy of NZD5 billion, while operating expenditure increased +3.2% to NZD3.8 billion. The number of passengers carried increased +4.2% to 14.3 million in (FY) 2015, with a +3.6% increase in short-haul passenger traffic and +9.3% increase in international passengers.

(ASK)s increased +6.6% to 35.6 billion, and (RPK)s were also up +6.6% to 30 billion. Passenger load factor remained stable year-on-year at 84.1% LF, and yield increased +0.2% (an increase of +2.2% in short haul operations, but a decline of -1.3% in the international sector).

(ANZ)’s growth strategy into (FY) 2016 includes a +11% increase in total capacity (+8% domestic and +15% international), expanding its presence in Australia and Asia, increased operations in North America, and the launch of services into the South American market with a Buenos Aires route.

(ANZ) (CEO), Christopher Luxon said, “we remain focused on the Pacific Rim as our growth strategy. Next year will see further capacity growth in international markets as we look forward to new routes starting in December 2015 to Houston and Buenos Aires. We [also] have a team assessing potential new opportunities in Australia, Asia, and the Americas.”

Carter added, “Given the current known operating environment, along with our increased capacity and improved operating efficiencies, we expect to achieve significant earnings growth in the coming year.”

News Item A-2: "Top 10 Premium Economy Classes 2015" by AIRWAYS publication placed Air New Zealand in 2nd place - - see attached "ANZ-2015-08 - Top 10 Premium Economy Classes 2015."

News Item A-3: See Air New Zealand videos:



September 2015: News Item A-1: The New Zealand government has cleared a new alliance between Air China (BEJ) and Air New Zealand (ANZ). New Zealand Transport Minister, Simon Bridges said the alliance would lower fares between New Zealand and Beijing and Shanghai, as well as make New Zealand a more attractive destination for Chinese travelers.

(ANZ) said the alliance between the two national carriers will increase capacity between Auckland and Mainland China by more than >25% annually. “China is New Zealand’s second largest inbound visitor market and by collaborating with a strong, well respected home market carrier like Air China (BEJ), we can work together to grow this market, and benefit customers through a new direct link between New Zealand and Beijing,” (ANZ) (CEO), Christopher Luxon said.

(BEJ) (CEO), Song Zhiyong said the relationship between China and New Zealand is going from strength to strength, with increased economic, cultural and political exchanges in recent years. Both carriers have already launched joint sales for a new Air China (BEJ) daily direct service between Auckland and Beijing from December 10.

The two Star (SAL) Alliance carriers would code share on each other’s services between New Zealand and China. Under the terms of the (SAL) alliance, (ANZ) would continue to operate its new Boeing 787-9s on its Auckland - Shanghai route. Air China (BEJ) would use A330-200 aircraft between Auckland and Beijing.

The two flag carriers signed a statement of intent to form an alliance in November 2014. The New Zealand Minister of Transport authorized the alliance through March 31, 2021.

News Item A-2: Air New Zealand (ANZ) has ended scheduled 737 operations with the type's last flight (Auckland International - Christchurch) operated by 737-300 (25608, ZK-NGI) on September 6.

To mark the end of (ANZ)'s forty-seven year-long association with the type, (ANZ) will be holding a "Final Call Tour" with the airplane stopping in Invercargill, Dunedin, Christchurch, Wellington, Napier/Hastings, Tauranga, and Auckland between September 8 and Sunday, September 20. Scenic flights will be held in Christchurch, Wellington, and Auckland, before it is finally parked and/or sold off.

(ANZ)'s narrow body fleet is now an all-Airbus Industrie (EDS) operation with twenty-seven A320-200s currently in service.

November 2015: News Item A-1: Air New Zealand (ANZ) began its first flights to South America on November 1 with a 3x-weekly service to Buenos Aires Ezeiza (EZE). The 10,908 km trans-Pacific flight, which will face no direct competition, departs from Auckland (AKL) and utilizes (ANZ)’s 777-200 fleet.

On December 15, Air New Zealand will celebrate its inaugural flight to Houston, introducing direct travel into the heart of the southern USA.

Air New Zealand (ANZ) will launch 3x-weekly service from Auckland International to Tan Son Nhat International Airport, Ho Chi Minh City, Vietnam from June 2016.

The flights will use Boeing 767-300 airplanes, on a direct 11-hour service, and come on the heels of a revamped air services agreement (ASA) signed between the two countries earlier this year that allowed expanded access and code share capacity.

(ANZ) (CEO), Christopher Luxon said Vietnam is part of (ANZ)’s focus on new Pacific Rim destinations, especially for expanding tourist destinations.

The new route will be the first New Zealand - Vietnam direct service, and will complement (ANZ)’s other imminent Pacific rim schedules to Houston and Buenos Aires in December 2015.

The Vietnam service will initially be operated over the June - October New Zealand winter season, but could be extended if the take-up is sufficient, (ANZ) said.

“Vietnam is an increasingly popular leisure destination with the number of Kiwis visiting the country up about +20% in the past year,” Luxon said.

(ANZ), the flag carrier is also considering another Pacific Rim service with a direct Philippines schedule, said (ANZ) Strategy & Networks spokesperson. Stephen Jones, who described the Philippines as a “market of interest” for future expansion.

News Item A-2: Air New Zealand placed a firm order for 15 additional ATR72-600s, valued at $375 million at list prices.

December 2015: Air New Zealand (ANZ) began flights between Auckland (AKL) and Houston Intercontinental (IAH) 5x-weekly, operating with a refurbished 777-200 from December 15. The 11,938 km sector will face no direct competition and complements the airline’s existing USA services to Los Angeles, San Francisco and Honolulu, while taking advantage of its Star (SAL) Alliance partnership with United Airlines (UAL), which has a base at the Texan airport. “Air New Zealand (ANZ) has been flying to the USA for 50 years and this new service connects the heart of America’s south to New Zealand,” said (ANZ)’s (CEO), Christopher Luxon at a post-landing event. “New Zealanders and Australians are going to really enjoy discovering this part of the world. And over the next year we’ll be making a big effort to build awareness of New Zealand as a destination for more American tourists to come down,” added Luxon. “With the beginning of Air New Zealand’s service from George Bush Intercontinental to Auckland, Houston becomes the only city in North America with nonstop air service available to all six inhabited continents,” said Houston Aviation Director, Mario Diaz.

February 2016: News Item A-1: Lower fuel prices and new international service helped Air New Zealand (ANZ) report a net profit of +NZ$338 million/+$226 million for the six months through December 31, 2015, up significantly from a net profit of +NZ$133 million a year earlier.

Operating revenue increased +12% to NZ$2.7 billion for the period, which is the airline’s fiscal first half, while passenger revenue was up +16%. Unit costs dropped -11% versus the prior year. Fuel costs of NZ$484 million (including the adverse impact from foreign exchange rate shifts) were down -15%. (ANZ) is projecting a pre-tax profit of +NZ$800 million for the full fiscal year through June.

System wide capacity was up +16% in the six months through December. Capacity is expected to increase +7% in the fiscal second half, and +8% to +10% in the next full fiscal year.

Despite this rapid growth, yields were only down -1% in the first half, which shows the extra capacity is being absorbed, (CEO), Christopher Luxon said. New routes to Houston and Buenos Aires have both proven successful since their launch in December.

(ANZ)’s investment in Virgin Australia (VOZ) also helped the results. Air New Zealand (ANZ) gained +NZ$15 million from its 25.9% share in (VOZ), reversing a loss of -NZ$14 million a year earlier.

News Item A-2: "Boeing (TBC) Electronic Logbook on Air New Zealand 787 Dreamliner Fleet" by aviationnews.eu, February 8, 2016.

Boeing (TBC) announced the full integration of its Electronic Logbook (ELB) within Air New Zealand (ANZ)'s 787 Dreamliner fleet, replacing paper logbooks with electronic records that improve operational efficiency and reliability.

"Advances in digital technology such as the (ELB). provide a more data-driven predictive maintenance process. With this capability we can proactively troubleshoot and quickly solve maintenance items, further driving improvements in reliability and on-time performance - which is great news for our customers," said Captain Dave Morgan, (ANZ) Chief Flight Operations & Safety Officer.

(ANZ) is among the initial airlines that have gained operational approval for use of the (ELB) application with the 787. (ANZ) currently operates a fleet of 6 787-9s with an additional +6 on order.

The (ELB) runs on the 787'S Electronic Flight Bag (EFB) and onboard server system to collect airplane flight data and crew-observed fault input, sharing that information with maintenance technicians (MT) and maintenance systems on the ground while the 787 is still en route. Ground crews, along with needed parts and documentation, can then be stationed at the gate to perform needed maintenance as soon as the 787 lands, maximizing maintenance process efficiency and minimizing passenger delays.

(ANZ) worked with the New Zealand Civil Aviation Authority to verify and validate (ELB) operations to gain the operational authorization needed to use the tool across the airline's 787 fleet.

News Item A-3: Air New Zealand (ANZ) is boosting the capabilities of some of its core turboprop and jet aircraft types by investing in advanced avionics upgrades.

The most significant of these moves is (ANZ)’s decision to equip its ATR72-600s to operate with a high level of required navigation performance–authorization required (RNP-AR). (ANZ) is set to become the first carrier to use (RNP-AR) with ATR aircraft at an accuracy of 0.3/0.3, which means flying within 0.3 nautical miles of its navigation track on approach, and the same for a missed approach or go-around.

(RNP-AR) allows aircraft to fly designed approach paths with great precision, which is particularly useful at airports with difficult terrain and during low-visibility conditions. ATR says it worked with (ANZ) to develop this level of (RNP-AR) capability, although more carriers are also interested in the upgrade. Other airlines (including Avianca (AVI)) have already installed a less-advanced level of (RNP-AR) on their ATR aircraft, operating to an accuracy of 0.3/1.0.

(ANZ) has 19 ATR72-600s on order, and 10 currently in its fleet. After certification and regulatory approval, the first of the deliveries with the more-accurate (RNP) capability is due to arrive in 2018, (ANZ) said. The other ATR72-600s will be retrofitted. (ANZ) also operates 11 ATR72-500s, but these will not receive the (RNP) upgrade as they are due to be replaced by the ATR72-600s.

* (RNP) investment

The total (RNP) investment is NZ$25 million/$16.5 million. “This technology will enable us to provide a more consistent service for customers who travel on our (ATR) aircraft, where weather conditions can at times prove challenging for our turboprop operations, particularly over the winter months,” (ANZ) Chief of Flight Operations, David Morgan said.

Meanwhile, (ANZ) is also introducing avionics upgrades in its jet fleet. It has gained regulatory approval from the New Zealand Civil Aviation Authority to use Boeing (TBC)’s Electronic Logbook (ELB) in its Boeing 787-9s. (ANZ) is one of only three 787 operators in the world to gain the necessary approval for this product, and the first in the Asia-Pacific region.

The (ELB) operates on the 787-9’s integrated electronic flight bag to collect flight data and any maintenance issues noted by the flight crew (FC) during flight. This information is then shared in real-time with maintenance and engineering teams. (ANZ) expects to improve reliability through “a more data-driven predictive maintenance process.”

* Airbus A320 fleet

Advanced capabilities in (ANZ)’s Airbus A320 fleet are expected to allow it to operate night flights on the mountainous approach to Queenstown, one of the country’s most popular tourism gateways. It is investing in Airbus Runway Overrun Prevention systems for these aircraft, which will be part of the safety case for the Queenstown night flights, that will need to be accepted by the regulator. This submission will also highlight heads-up displays (HUD)s and (RNP-AR) capability that are already equipped.

(ANZ) is confident the safety case will be accepted, as it has been working on the project for some time with the regulator, the airport, unions and other industry stakeholders.

Queenstown Airport began a development project in November that will include runway upgrades and navigational-lighting improvements.

(ANZ) said the night-flight approval will allow it to add 1 - 2 flights per day from Auckland to Queenstown beginning in July, giving it up to seven per day during winter months. This will improve same-day connections from international flights arriving in Auckland, (ANZ) said.

News Item A-4: Air New Zealand (ANZ) plans to 3D print components for its Business Premier cabins, in a bid to leverage new technology to help reduce costs.

The airline has been working with the Auckland University of Technology to manufacture fold- down cocktail trays that form part of its Business Premier seat using 3D printing (also known as additive layer manufacturing technology).

(ANZ) (COO), Bruce Parton said: “Aircraft interiors are made up of tens of thousands of parts. Not only can’t we hold stock of every replacement part we might need, we often only require a small number of units which can be really expensive to produce using traditional manufacturing methods and can involve frustrating delays, while a replacement part is delivered. A big advantage of 3D printing is that it allows us to make cost-effective lightweight parts ourselves, and to do so quickly without compromising safety, strength or durability.”

Air New Zealand (ANZ) hopes to start installing the 3D printed cocktail trays on its aircraft in the coming weeks, pending final regulatory approval.

Parton said (ANZ) was also exploring opportunities to introduce further 3D printed components. “It seems the possibilities are limited only by our imagination,” he said.

News Item A-5: (AJW) Aviation has signed a new power-by-the-hour (PBH) contract with Air New Zealand (ANZ) to manage component support for five Boeing 767s. (ANZ)’s own Boeing inventory will be held on site in Auckland to a defined list and the balance of spare parts will be held on consignment in Singapore.

News Item A-6: (ANZ) will begin producing its own 3D-printed aircraft components for use in business (C)-class cabins. (ANZ) is working with the Auckland University of Technology to manufacture fold-down tray tables.

March 2016: News Item A-1: United Airlines (UAL) and Air New Zealand (ANZ) announced a joint venture (JV) revenue-sharing agreement, deepening the partnership between the two Star (SAL) Alliance members. Under the new revenue-sharing agreement, the carriers said they will more closely coordinate sales and marketing in order to offer their mutual customers more travel options between the mainland USA and New Zealand, as well as to other destinations throughout the airlines’ route networks.

The arrangement will begin when (UAL) launches its nonstop service between San Francisco and Auckland on July 1, 2016, subject to government approval. “This joint venture will allow us to work more closely with Air New Zealand (ANZ) to optimize our transpacific schedules and offer more convenient flight choices to our customers in both the USA and New Zealand,” (UAL) Vice Chairman & Chief Revenue Officer, Jim Compton said.

(ANZ) (CEO), Christopher Luxon said, “We know that New Zealand is a popular destination for American leisure travelers. By working more closely with such a strong home market carrier as (UAL) we look forward to welcoming even more American visitors to enjoy our unique Kiwi tourism experience.”

News Item A-2: "Virgin Australia, Air New Zealand to Partner on Biofuel Purchase" by (ATW) Adrian Schofield, March 14, 2016.

Virgin Australia (VOZ) and Air New Zealand (ANZ) have joined forces in their quest to start using biofuel, and the new arrangement could result in a combined supply deal.

The two carriers (who already have an extensive air service partnership in the Australia - New Zealand market) have agreed to jointly “investigate options for locally produced aviation biofuel.” The pair are issuing a request for information (RFI) to the biofuels industry “to explore the opportunity to procure” biofuel.

Any companies interested in responding to the (RFI) must do so by May 30. The airlines are not revealing details of the (RFI), such as the quantity sought or timelines. A (VOZ) spokeswoman described this as commercially sensitive information.

The two carriers have already been active in aviation biofuel development. (ANZ) was a leader in demonstration flights using biofuel produced from the plant Jatropha, and (VOZ) is involved in projects to develop various biomass sources. They both signed memoranda of understanding (MOU) with Australia-based biofuel company Licella in 2011.

As well as helping the airlines’ own carbon reduction programs, the new joint initiative is aimed at supporting the growth of this industry in Australasia. “We are seeing the development of the aviation biofuel industry accelerate internationally, but that is not yet the case for our region,” (VOZ) Head of Sustainability, Robert Wood said. “We are confident that our collaboration with (ANZ) to procure a large volume of aviation biofuel will de-risk investment in the sector, creating high-tech, high-skilled jobs in the region.”

Likewise, (ANZ) “hope[s] we can stimulate the local market, drive innovation and investment, plus potentially uncover a sustainable biofuel supply suitable for our respective operations,” said Captain David Morgan, (ANZ)’s Chief of Flight Operations.

News Item A-3: Air New Zealand (ANZ) is proposing tighter carbon offset requirements under the country’s emissions trading scheme (ETS), a move spurred by (ANZ0’s extensive sustainability initiative.

News Item A-4: Virgin Australia (VOZ)’s largest stakeholder, Air New Zealand (ANZ), is considering selling its share of (VOZ).

April 2016: News Item A-1: Air New Zealand (ANZ) is continuing to develop its Pacific Rim strategy with a new direct route to Manila, taking on a one-stop service launched recently by Philippine Airlines (PAL).

May 2016: "Air New Zealand Settles USA Price Fixing Suit for $35 Million" by (ATW) Adrian Schofield, May 11, 2016.

Air New Zealand (ANZ) has agreed to a settlement in a USA class-action lawsuit against several airlines accused of price fixing in their cargo operations.

Under the settlement terms, the airline will pay $35 million. (ANZ) has not admitted liability, and it said it agreed to settle “rather than take the risk of a potentially very material commercial liability by continuing to defend its position.”

The class action was filed on behalf of several freight forwarders in 2006. The lawsuit named a list of global airlines, alleging that they conspired on cargo fuel and security surcharges between 2000 - 2006. Similar cases have been brought in other countries. The USA Department of Justice (DOJ) launched a criminal investigation, but (ANZ) was released from that in 2011.

(ANZ) said the settlement was reached May 7 following mediation and still is subject to court approval. The $35 million represents 2.8% of the $1.2 billion so far paid in settlements by 28 airlines. (ANZ) is one of the last to settle the lawsuit, and (ANZ) notes it is “one of the few airlines involved in the action to have been investigated by the [DOJ] and not subsequently prosecuted.”

Litigation still is pending against Air India (AIN)/(IND), according to plaintiffs’ attorneys.

The settlement was “purely a question of mitigating an unacceptable risk created by the USA class-action system, which creates enormous pressure to settle such matters commercially,” said John Blair, (ANZ)’s general counsel. “There was no credible evidence that any
(ANZ) employee participated in any conspiracy, but the potential for an unexpected verdict was not an acceptable commercial risk for (ANZ).”

* Bottom-line Effects

(ANZ)’s latest profit guidance, issued February 25, does not include the class-action settlement. (ANZ) projected its earnings would be more than >$800 million New Zealand dollars/$542 million for the financial year through June 30, excluding taxes and (ANZ)’s Virgin Australia (VOZ) shareholding.

June 2016: China’s privately run Nanshan Group which owns Qingdao Airlines (QDO) has purchased a 19.98% stake in Virgin Australia (VOZ) from Air New Zealand (ANZ). (ANZ) will sell the stake in (VOZ) at 0.33A$ a share to the Nanshan Group. This transaction makes Nanshan the second Chinese company within a month to invest in (VOZ).

“We believe the Nanshan Group will be a very strong, positive and complementary shareholder for Virgin Australia (voz),” (ANZ) Chairman, Tony Carter said. “The sale will allow (ANZ) to focus on its own growth opportunities, while still continuing its long-standing alliance with Virgin Australia (VOZ) on the trans-Tasman network.”

(ANZ) holds a 25.9% stake in (VOZ) and is considering options on the rest of its (VOZ) shares. Other stakeholders include Singapore Airlines (SIA), which received approval from the Foreign Investment Review Board to boost its stake in Virgin Australia (VOZ) to 25.9% and Abu Dhabi-based Etihad Airways (EHD), which holds a 25.1% stake in (VOZ).

At the end of May, the (HNA) Group announced it would invest A$159 million/$114 million to buy a 13% stake in (VOZ) for A$0.3 per share and plans to increase the stake to 19.99%.

(VOZ) noted the tie-up would boost access to the “rapidly growing Chinese travel market” and has applied to introduce direct flights between Australia and China.

(VOZ) said it expects Nanshan to seek a seat on its board. “We look forward to meeting with the Nanshan Group over the coming weeks to discuss the proposed acquisition,” it said. The deal still needs approval from Chinese regulators.

July 2016: "Is This the Worst-ever Airline Flight Safety Video?" by
Karen Walker in her (ATW) Editor's Blog, July 22, 2016.

Air New Zealand (ANZ) has released its latest flight safety video. The Kiwi airline is famous for its fun videos and they are usually popular, but I have to say that I think they’ve produced a dud this time. The new video uses two actors (a Kiwi comedian and an American actress) and the “plot” crosses various Hollywood genres, from cop movie to romance in Paris, to horror and finally, to Spaghetti Western.

I use the word “finally” deliberately, because this thing is five minutes long. Two minutes in, and I am struggling to keep watching as I cringe at the slapstick “comedy.”

We all have different tastes, but this is a safety video. Isn’t the point that you watch it to the end? The most important information ( where the exit doors are located) doesn’t come until >3 minutes into the video and, to paraphrase another (real) Hollywood movie, they lost me at 2 minutes.

My other complaint is that for those passengers who really don’t know how to fasten a seat belt or what to do with an oxygen mask, then this is a very difficult video to follow from a safety perspective. Safety instructions are disjointed and sandwiched between lengthy, distracting, extremely silly “movies.” If you are new to flying, I’ll bet you will only remember the movie segments and could easily miss or forget the safety parts altogether.

And if I were a frequent flier with (ANZ), I’d find it really annoying to have this blared to me more than once. So I would close my eyes and turn up the iPod.

I hope I’m wrong. (ANZ) is a fine airline and well known for doing things differently (their different being very good almost every time. Their previous safety videos with themes such as the Hobbit, the much loved All Blacks rugby team, and even flight crew (FC) in body paint uniforms have been fun, popular and have clearly conveyed the safety message.

Lots of airlines struggle to hit the right balance between delivering a serious safety message and getting the attention of passengers, who all too often tune out the video altogether. United (UAL) did a good one featuring flight crews (FC)s around the world and a genuinely funny kangaroo. Air France (AFA) has a chic one with attractive women in pretty frocks. Both are crystal clear with the safety instructions.

But sadly, I think the new (ANZ) safety video fails on both counts ( it’s neither entertaining (maybe for those younger than <10 years), nor clear with the instructions. But is it the worst safety video ever made? Watch it here, email me your opinion and tell me which airline you would nominate for worst safety video.


August 2016: Air New Zealand (ANZ) has continued its run of strong financial results with a record net profit of +NZ$463 million/+$328 million for the fiscal year through June 30, up +42% from the previous year.

Operating revenue increased +6.2% to NZ$5.2 billion, while passenger revenue was up +8.9%. Overall traffic increased +11% on a +12% capacity hike. Unit revenue dropped -2.3%, reflecting significant capacity growth and higher competition. Yield was down -1.8%.

Operating costs declined 2% to NZ$3.7 billion. Lower fuel costs were the major factor, dropping by -22.3%.

(ANZ) expects its profit for the current fiscal year to drop slightly because of greater competitive forces. Pre-tax profit is projected to be in the range of +NZ$400 to +NZ$600 million, versus +NZ$663 million for the previous year.

International long-haul capacity is expected to be up by +4% to +6% in the 2016/2017 fiscal year, versus +16% growth in the 2015/2016 year. Capacity is likely to increase +3% to +5% for Australian and Pacific Island routes, and +7% to +9% for the domestic market (in both cases similar to the previous year’s growth).

September 2016: News Item A-1: Satellite-based Aircraft Tracking on the way for Airways New Zealand" September 22 2016

A new satellite-supported system designed to replace radar as New Zealand’s main airplane tracking technology is a step closer. Airways New Zealand has secured a supplier of ground infrastructure for its Automatic Dependent Surveillance – Broadcast (ADS–B) network.
“The network will provide a more detailed picture of our airspace than is currently possible with radar. It will enhance the way airplanes are monitored in domestic airspace and will play a crucial role in supporting the growth of air travel in New Zealand,” Airways’ Chief Operating Officer (COO) Pauline Lamb said.

(ADS-B) uses satellite (GPS) systems, airplane transmitters and a network of ground station receivers to follow airplanes with a more precise level of accuracy. With a network of ground receivers installed even in remote locations, the system will detect airplanes in places where there is limited radar coverage, like behind mountain ranges and at low altitudes in regions such as the Hawkes Bay, Gisborne and much of the South Island’s west coast.

(ADS-B) is the global standard for airspace surveillance and its introduction here is a key part of the New Southern Sky program, the Government’s 10-year plan to modernise New Zealand’s aviation system.

An intense period of air traffic growth is forecast for the Asia Pacific region. Visitor numbers to New Zealand are set to hit 4.5 million annually by 2022 and with 99% of them arriving by air, (ADS-B) will help to provide the airspace capacity to handle increased numbers, Ms Lamb said. “The precise tracking ability and increased surveillance coverage (ADS-B) provides allows us to reduce the separation between airplanes to have them safely fly closer together and on the most direct route, improving the flow of traffic and reducing environmental impacts,” Ms Lamb said.

“In an emergency or search and rescue situation, this level of detail would mean we would be able to provide help to an airplane in distress much more quickly.”

"Airways" has awarded a contract to French multinational Thales (THL) to provide ground equipment for the $12 million network. Installation work will begin in early 2017 and the first phase of the network will be operational by the end of December 2018, when a Civil Aviation rule is planned to be implemented requiring all airplanes flying in controlled airspace above 24,500 feet in New Zealand to be using (ADS-B). The requirement will be extended to all controlled airspace by the end of 2021, when the current radar system will be de-commissioned.

The relatively low cost of (ADS-B) ground equipment compared to traditional radar makes it the most cost-effective option for expanding New Zealand’s surveillance capability. A smaller radar network will remain in place in New Zealand as a back-up.

October 2016: News Item A-1: "Air New Zealand Defends Australia - USA Transit Market as Qantas Plans Further USA growth with 787-9s" (CAPA) centreforaviation.com, October 18, 2016.

Air New Zealand (ANZ) is turning up the volume. For years (ANZ) had a tidy, under-the-radar business carrying transit passengers between Australia and the USA from its Auckland hub. (ANZ) is now directly targeting the Australia - USA market with a sales and marketing push that includes an advertising campaign called "Better Way to Fly". (CEO) Christopher Luxon said that "capturing just a little bit more of that market would see hundreds of thousands more Aussies flying with us to North and South America. Many Australian travelers still think of us as a trans-Tasman carrier and that’s a perception we’re determined to change."

The shift that (ANZ) envisages is being sought now (and not 5 or even 10 years earlier) largely because of external factors and competition. (ANZ)'s Marketing may suggest an opportunistic push, but the reality is (ANZ) is on the defensive. In the Australia - Americas market, competitors have lowered their costs, adding city pairs, product improvements and significant capacity growth. 2017 and 2018 are expected to mean even more growth as a resurgent Qantas (QAN) adds 787-9 services between Australia and the USA, and in particular – to Dallas.

News Item A-2: Air New Zealand (ANZ) sold its remaining stake in Virgin Australia (VOZ) to various investors, including the Nashan Group for A$65.7 million.

News Item A-3: ""Flight from Hell": 4 Injured As Air NZ Plane Hits Turbulence" The New Zealand Herald, October 10, 2016.

4 people, including 3 crew, have been injured after an Air New Zealand (ANZ) flight hit turbulence, 40 minutes into a Vietnam - Auckland flight. Passengers have described the experience as a "flight from hell."

One passenger on the plane said it dropped 100ft. "It came on so fast. 20 seconds of bumps, then a drop off, then 5 seconds later up we went followed by a 100-foot fall," said passenger Vince Newbold.

Another passenger, Emma Te Paa, said cabin crew (CA) were thrown to the ceiling. She posted on Facebook the plane was 1st delayed by 2 hours because of an issue with the brakes. Then the "flight from hell" took off, with everything going well until the plane struck turbulence an hour into the flight. "As the air hostess (CA) handed me my tray, we hit some really bad turbulence, the plane dropped and all my food flew all over the floor and me. Everyone was screaming and we had no idea what was going on."

"A few minutes passed and the crew were calling for a doctor over the loud speaker. 2 crew members (CA) had suffered critical injuries, - the turbulence had thrown them up to the ceiling." She said she had returned back to Vietnam because the plane returned to Ho Chi Minh City in order to take the injured to the nearest hospital.

She reported that as well as losing all food trays, 4 food carts were left smashed over the floor.

Paramedics boarded the plane to tend to the injured once the plane landed back in Vietnam.

She posted on Facebook the frightening episode in the skies and stated it was unlike anything she had ever experienced.

Newbold said as the plane hit turbulence, "things went flying." "2 cabin crew (CA) were injured with head injuries and a doctor on board said we needed to land ASAP," he wrote in an email.

A decision was made to return to Vietnam as Darwin was deemed too far away for urgent treatment.

Newbold described it as "spooky" and better than any roller coaster he had even been on.

The 4 people on board flight NZ268 from Ho Chi Minh City, all had suffered minor injuries in the morning incident, an Air New Zealand (ANZ) spokeswoman said.

The airplane landed safely and without further incident in Vietnam around 8:20 am New Zealand time on October 9.

The injured were assessed and treated by medical staff.

The flight returned to Vietnam and departed again on October 10. It arrived in Auckland NZ in the evening.

"We thank passengers for their patience," the (ANZ) spokeswoman said.

November 2016: (AAR) has signed a long-term contract with Air New Zealand (ANZ) to provide cost-per-flight-hour rotable inventory support covering approximately 740 parts and 15 of (ANZ)’s 777s.

The reciprocal terms of the agreement will see (ANZ) become (AAR)’s exclusive component repair provider for selected parts in Asia-Pacific as well as a preferred supplier for selected parts world wide.

USA headquartered (AAR) said the contract both establishes a component inventory and repair partnership in the Asia-Pacific region, while also marking its 1st (PBH) contract solely for the 777s.

Deepak Sharma, President, (AAR) International Supply Chain, said: “This partnership complements (AAR)’s in-house component repair facilities in the USA and Europe and extends our reach in the fast-growing Australasia region.” Sharma described the union as the “beginning of a win-win partnership” that it hopes to extend to other projects in the Asia-Pacific region and beyond.

Meanwhile, (ANZ)’s Chief Operating Officer (COO) Bruce Parton added that the deal will help drive a high volume of work and in (ANZ)’s components business.

December 2016: News Item A: Global mobile satellite communications provider Inmarsat and Air New Zealand (ANZ) have signed a contract to provide Global Xpress (GX) connectivity "(GX) for Aviation" across (ANZ)’s long- and short-haul fleets.

Under the agreement, (GX) for Aviation connectivity will be integrated with (ANZ)'s in-flight entertainment (IFE) system provided by Panasonic.

According to Inmarsat, the 1st (GX)-equipped airplanes are expected to begin proving flights in the 2nd half of 2017, with services progressively available on Tasman, Pacific and long-haul fleets from the end of next year. It is anticipated that domestic routes will be added to the connected fleet from 2018.

(ANZ)’s Chief Digital Officer Avi Golan said (ANZ) spent time testing the (GX) live experience on Honeywell (SGC)’s Boeing 757 test airplane, as part of Inmarsat Aviation’s global test tour. “We‘ve been monitoring the developments in in-flight connectivity for some time and with (GX), we believe we will be able to offer broadband on board in innovative ways that will further set Air New Zealand (ANZ) apart as 1 of the world’s leading airlines,” he said.

News Item A-2: Thales (THL) has been selected by Airways New Zealand, New Zealand's air navigation service provider (ANSP) which monitors all air traffic in the country, for the supply of a nationwide (ADS-B) network.

The contract has been awarded following an international tender and a set of trials. The (ADS-B) network (THL) will supply, will include 28 locations equipped with Ground Stations to ensure full air traffic surveillance in areas with limited radar coverage, such as Hawke's Bay, Gisborne and much of the South Island's west coast.

Airways New Zealand is ranked in the top 5% of the most efficient (ANSP)s in the world. They have recently deployed a number of improvements that have reduced in-flight delays from 3 minutes to <23 seconds, successfully saving $16 million per annum in airline fuel. These successes come in the face of significant growth in passenger numbers in the country, which is expected to surpass 4.5 million annually by 2022. As a result, Airways New Zealand has identified (ADS-B) technology as essential to maintain operational excellence. In addition to optimizing air traffic by safely reducing airplane separation, (ADS-B) technology will help reduce CO2 emission, a very important Government policy in New Zealand.

News Item A-3: Latest (ANZ) Safety Video!!!!

February 2017: Air Lease Corporation (ALE) announced a long-term lease agreement with Air New Zealand (ANZ) for 1 new Boeing 787-9. The 787-9 is from (ALE)’s order book with Boeing (TBC) and is scheduled for delivery in (Q3) 2018.

March 2017: News Item A-1: Air New Zealand (ANZ), Qantas (QAN) and 4 other airlines were establishing an association to lobby on common causes such as airport fees, taxes and infrastructure reform.

The new association is called "Airlines for Australia & New Zealand" (A4ANZ) and would be chaired by former Australian Competition & Consumer Commission Chairman Graeme Samuel. Founding members include (ANZ), (QAN), Regional Express (REX), Jetstar (IMU), Virgin Australia (VOZ) and Tigerair Australia (TAU).

In a press release, the industry group said it would be self-funded and would advocate and pursue reform on public policy issues that impact the aviation sector and broader economy in the region. Airports, taxation and fees, access to efficient infrastructure and broader regulatory reform are cited as key issues.

The (A4ANZ) will be governed by a board made up of a representative from each member airline. A (CEO) will be appointed in the coming months. “Australia and New Zealand must compete for visitors on the world stage against many other attractive destinations. To be competitive we must continue to improve cost and quality in all parts of the travel experience, but we are constrained by a legacy of under-investment and over-recovery at key airports. (A4ANZ) will add its voice to that ambition,” (ANZ) (CEO) Christopher Luxon said.

Qantas Group (CEO) Alan Joyce added, “Airport fees and charges continue to increase while airlines are offering fares at levels significantly cheaper than they were over a decade ago. (A4ANZ)’s goal is to achieve regulatory reform that will promote a competitive and sustainable airline industry in the interests of Australian and New Zealand travelers.”

Rex Executive Chairman Lim Kim Hai said, “(A4ANZ) is critical for regional communities as major airports are all too ready to sacrifice critical regional interests.”

Until 2010, (ANZ) and (QAN) were members of the Association of Asia Pacific Airlines (AAPA), which now has 16 members, including All Nippon Airways (ANA), Cathay Pacific (CAT), Garuda Indonesia (GIA), Japan Airlines (JAS)/(JAI) and Singapore Airlines (SIA).

In February 2016, a new European airline lobbying group was formed (Airlines for Europe (A4E)). Like (A4ANZ), (A4E) brought together a mix of legacy carriers and (LCC)s. Founding members were Air France (AFA) - (KLM), UK-based (LCC) easyJet (EZY), British Airways (BAB)’s parent the International Airlines Group (IAG), Lufthansa (DLH) and Irish (LCC) Ryanair (RYR). One year on, the association had grown to 14 members and the Association of European Airlines (AEA) closed down after >60 years of operation.

News Item A-2: Air New Zealand (ANZ) has operated its final commercial flight using the 767-300ER. The last scheduled service operated by 767-319ER (26913, ZK-NCI) departed Sydney on March 21 and arrived at Auckland International Airport just before midnight.

The 767 has served (ANZ), the New Zealand flag carrier for >3 decades since the type was introduced in September 1985. It has been replaced by the more fuel-efficient 787-9 Dreamliner since July 2014.

July 2017: New Zealand’s major pilots union failed to overturn a court ruling in a long-running pay dispute with Air New Zealand (ANZ).

The country’s Supreme Court rejected the union’s claim that a lower court, which had previously ruled in favor of (ANZ), did not have jurisdiction. The challenge had been filed by the New Zealand Air Line Pilots Association (NZALPA).

The original dispute related to a 2013 pay rise granted by (ANZ) to Boeing 737 pilots (FC) represented by a smaller union, the Federation of Air New Zealand Pilots (FANZP). (NZALPA) claimed that a clause in its own contract required (ANZ) to award a matching increase to its members. However, Air New Zealand (ANZ) disputed this interpretation.

(ANZ)’s argument was accepted by the Employment Relations Authority, but the Employment Court reversed this decision. (ANZ) brought the case to the Court of Appeals, which sided with the original ruling in (ANZ)’s favor.

This prompted (NZALPA) to send the case to the Supreme Court, on the basis that the Appeals Court went outside its jurisdiction in overturning the Employment Court decision. However, a majority of judges on the Supreme Court panel ruled the (NZALPA) appeal should be dismissed.

Following the latest decision, (NZALPA) stressed the issue was “fundamentally important for its pilots (FC).” The union said that “a continuing 2-tier contractual approach remained an upsetting issue for many pilots (FC), who felt they were treated differently to their colleagues just because they chose to belong to a highly supportive professional organization.”

(NZALPA) highlighted the fact that the Supreme Court did not rule that (ANZ)’s interpretation of the contract was correct. Because of this, the union “was considering options for having the contractual interpretation issue re-examined by the Employment Court.”

For its part, (ANZ) has “a very constructive ongoing relationship” with its pilot unions, with “a number of collaborative initiatives currently underway.” (ANZ) added that “it’s pleasing to now have this ongoing matter resolved by the Supreme Court so it could focus on the future.”

August 2017: Air New Zealand (ANZ) has outlined plans to grow capacity in its domestic and international networks in (ANZ)’s current fiscal year ending June 30, 2018, predominantly by adding frequency to existing routes. (ANZ) planned to increase capacity by +4% to +6% year-over-year (YOY) in the fiscal year, (CEO) Christopher Luxon said. This is slightly higher than the estimate of +3% to +4% (YOY) capacity growth that was issued by (ANZ) in June.

September 2017: News Item A-1: Air New Zealand (ANZ) has introduced new sustainability initiatives, including increasing its use of airport gate power and reusing a wide range of in-flight products. (ANZ) expected to save a significant amount of fuel by plugging airplanes into ground electricity supplies when they were parked at gates. This allowed airplanes to turn off auxiliary power units, which typically are used to provide on board electricity and air conditioning while airplanes are on the ground.

News Item A-2: A damaged pipeline has led to rationing by the oil company supplying New Zealand’s Auckland Airport with jet fuel, prompting delays and cancellations on scores of flights operating out of New Zealand’s biggest airport.

According to Auckland Airport, “Refining New Zealand," which owns the Marsden Point fuel refinery was working on repairing a section of its damaged fuel pipeline which connected the refinery in Marsden Point to Wiri Oil Services Limited in Auckland, which in turn supplies airlines with aviation fuel at the airport.”

“Oil companies are responsible for transporting, storing and supplying fuel for use by airlines at the airport, and as a result of the pipeline damage, the oil companies were rationing the amount of fuel they were supplying to airlines,” the airport said in a travel advisory posted to its website.

For September 20, the airport was reporting 35 cancellations on arriving flights and 48 cancellations on departing flights. For September 21, 17 arriving flights and 27 departing flights had been preemptively canceled.

On September 20, the airport said on its travel alert website page that the projected duration of the shortage was unknown at the time. The airport said it was working with the airlines operating out of Auckland to minimize the impact on passengers by increasing staff in the terminals to provide assistance, as well as offering extended free Wi-Fi access to stranded passengers.

As for a contingency plan, the airport said: “Oil companies are responsible for transporting, storing and supplying fuel to airlines operating out of Auckland. They store jet fuel reserves at the Wiri Oil Terminal and the (JUHI) storage facility at the airport. To conserve the reserves, the oil companies are rationing the amount of fuel they are supplying to airlines operating out of Auckland.”

“In turn, airlines are taking steps to limit refueling in Auckland including undertaking refueling stops on long-haul services and domestic services into Auckland carrying more fuel to enable a return trip. In some cases, airlines are also cancelling flights,” the airport said.

The (JUHI) storage facility can accommodate 12 million liters of jet fuel at its storage tanks, which are located on the Auckland Airport precinct, the airport said. (JUHI) is not owned by Auckland Airport.

Airlines affected by the situation at Auckland Airport included Air New Zealand (ANZ), All Nippon Airways (ANA), American Airlines (AAL), New Zealand's Barrier Air, British Airways (BAB), China Eastern Airlines (CEA), China Southern Airlines (GUN), Emirates Airline (EAD), Jetstar (IMU), (LATAM) Airlines (TPR), Qantas (QAN), Singapore Airlines (SIA), Thai Airways (TII), Virgin Atlantic (VAA), and Virgin Australia (VOZ).

Later in the month, the damaged pipeline was restarted on September 24 after repairs were completed, officials said.

Jet fuel from the Marsden Point Oil Refinery began to arrive at Auckland's Wiri Oil Terminal on the September 24 morning and was expected to reach Auckland Airport by September 26, Energy & Resources Minister Judith Collins said.

"Airlines continued to operate their networks on the 50% fuel allocation from Auckland, with increasing stability and minimal disruption to passengers," Collins said. "The number of flight cancellations has been steadily decreasing."

5 international flights were canceled on Saturday, September 23 as New Zealand's army trucked fuel to Auckland airport and New Zealanders went to the polls for a general election. 20 more international flights were canceled on Sunday September 24.

The New Zealand government set up a commission to oversee the response to the crisis just days before Saturday's poll, which has left the ruling National Party and opposition Labour Party in a position of having to lobby the nationalist New Zealand 1st party to form a coalition government.

Tourism industry officials have expressed concern about the impact on the international reputation of New Zealand, which has been experiencing record levels of tourism.

>100 flights were canceled over the past several days and many more delayed, disrupting the plans of thousands of travelers.

Damage to the 170 km/105 mile fuel line, which supplies almost all of the fuel for Auckland, New Zealand's largest city, was believed to have been caused by a digger. Repairs were completed late on Friday.

New Zealand Refining Co Ltd Chief Executive Sjoerd Post told media on Saturday that full capacity would probably not return until early next year. Post said the pipeline would operate at 80% capacity until further tests were carried out over the next few months.

October 2017: Air New Zealand (ANZ) has begun the 1st operational trials of its new onboard wi-fi service, which eventually will be rolled out across its international jet fleet.

The 1st of (ANZ)’s airplanes to be fitted for wi-fi is a Boeing 777-300ER. More will be fitted during the next few months, and (ANZ) intends to introduce the service on the remainder of its 777-300ERs by June 2018. (ANZ) plans to begin introducing wi-fi in its 777-200ERs from April 2018.

(ANZ) said the initial trial is not just intended to test technical aspects, but will also be used to “gather feedback on pricing options.” (ANZ) plans to allow customers to choose to “sign up for different timeframes,” with various payment options.

(ANZ) is using Inmarsat’s global GX satellite constellation, and has also partnered with Panasonic Avionics for cabin technology.

November 2017: Air New Zealand (ANZ) is rolling out Bluetooth tracking devices across its cargo network, and (ANZ) predicts this will make it easier to track and analyze shipment movements.

(ANZ) is installing about 5,500 Bluetooth tags on cargo containers, pallets and unit load devices, and is introducing >100 readers at 29 airports internationally. (ANZ) is working with Core Transport Technologies on the system. “We believe this to be the 1st time this type of technology has been deployed at this large scale anywhere in the world,” Core Managing Director Ian Craig said.

(ANZ) is making substantial progress on deployment, and aims to complete it before Christmas. The tracking system is operating, with (ANZ) monitoring the equipment that has been tagged.

The technology is only being used for internal purposes so far, although it could be made available to customers to help track their shipments.

December 2017: News Item A-1: Air New Zealand (ANZ) is facing significant disruption in its international network because of problems with the Rolls-Royce (RRC) (Trent 1000) engines on its Boeing 787-919 fleet. (ANZ) has been forced to ground 4 of its 11 787s because of the (Trent 1000) issues. Other operators of the engine have been dealing with the same problem for several months, but it became more urgent for (ANZ) this month after 2 787 flights had to turn back shortly after takeoff.

(ANZ) has secured aircraft on short-term leases to cover for its Boeing 787s grounded because of engine issues and reduced some operating parameters for the rest of its 787 fleet. (ANZ) has leased an Airbus A330-200 and A340-300 from Hi Fly (LXA). The 2 aircraft will start to serve (ANZ)’s Australian routes by next week. They will take over all of (ANZ)’s flights from Auckland to Perth, and some of its flights to Sydney.

News Item A-2: (KfW) (IPEX) Bank has financed 2 Boeing 787-9s, equipped with Rolls-Royce (RRC) engines, for Air New Zealand (ANZ).

February 2018: News Item A-1: Emirates Airline (EAD) is launching a new route from Dubai to Auckland, New Zealand via Bali, Indonesia, as the 2nd stage of (EAD)’s overhaul of New Zealand services. The route is scheduled to begin June 14 with a Boeing 777-300ER. The new service follows the planned suspension of 2 other (EAD) flights to New Zealand.

(EAD) previously announced it would cut Airbus A380 flights from the Australian cities of Brisbane and Melbourne to Auckland from March. This move was partly caused by (EAD)’s introduction of direct flights from Dubai to Auckland, making the one-stop services via Australia less essential.

(EAD) has retained service between Sydney and Christchurch, New Zealand, which will give it 3 New Zealand services from June using its own airplanes.

As part of the reshuffle, (EAD)’s partner Qantas (QAN) will increase capacity on certain Australia to New Zealand routes.

Emirates (EAD) President Tim Clark said the addition of the Dubai to Bali to Auckland flight “underscores (EAD)'s commitment to New Zealand, dating back nearly 15 years, and our confidence in its growing tourism market.” When the other route cuts were announced, (EAD) had signaled that new service to New Zealand could be introduced later, either direct or via Asia.

The new route will also be significant for (EAD)’s presence in the popular Bali market. (EAD) currently has 2 daily flights from Dubai to Bali in the northern summer season, and 1 daily flight in the winter season. From June, it will have an additional daily in each season.

(EAD) stressed the Bali to Auckland leg will be the only year-round service between these 2 cities. Air New Zealand (ANZ) operates a Boeing 787-9 flight on this route between April and October.

News Item A-2: Air New Zealand (ANZ) plans to launch a non-stop flight from Auckland to Taipei, Taiwan, as the latest step in its strategy of growing its Pacific Rim destinations. The Taipei flights were announced at the same time as (ANZ)’s earnings for its fiscal half-year. The route is set to launch in November and will be flown 4x- to 5x-weekly using Boeing 787-9s. Taipei will be (ANZ)’s 7th route to Asia.

March 2018: News Item A-1: Star (SAL) Alliance Partners United Airlines (UAL) and Air New Zealand (ANZ) are boosting capacity in the USA to New Zealand market, including a new route between Chicago and Auckland to be operated by (ANZ).

The new route is set to be launched in November, starting with 3x-weekly. Flight duration will be about 15 hr north bound and >16 hr south bound. The service will use Boeing 787-9s.

Chicago (ORD) will be (ANZ)’s 5th USA gateway, after Honolulu, Houston, Los Angeles and San Francisco. (UAL) and (ANZ) operate a partnership in the transpacific market. In addition, (UAL) is extending its seasonal service on the San Francisco to Auckland route to year-round. (UAL) currently operates this as a daily flight from the end of October through March. It will be 3x-weekly starting from April, using 777-200ERs, then reverting to daily service with 777-300ERs at the end of October. (ANZ) also operates a daily flight on the Auckland to San Francisco route.

(ANZ) is scheduled to receive +2 more 787-9s this year, which will give it a total of 13. These 2 airplanes, as well as 1 already delivered, will have a different cabin configuration featuring a greater mix of premium seats considered more suitable for North American markets. (ANZ) plans to lease a 14th 787-9 in its 2019/2020 fiscal year.

News Item A-2: A near collision between a drone and a Boeing 777 on March 25 has prompted Air New Zealand (ANZ) to call for stricter regulations for drone operators. The 777 was on descent into Auckland Airport when it passed within about 5 m/16.4 ft of a drone. The pilots (FC) saw the drone “at a point in the descent where it was not possible to take evasive action,” said David Morgan, (ANZ)’s Chief Operations & Integrity Standards Officer.

April 2018: News Item A-1: "Air New Zealand Boosts Network to Replace Virgin Australia Alliance" by Adrian Schofield (avweekscho@gmail.com) ATWOnline, April 9, 2018.

Air New Zealand (ANZ) is moving quickly to add services to Australia following the breakup of its partnership with Virgin Australia (VOZ).

(ANZ), the New Zealand flag carrier will launch 2 new routes to Australia and will add frequencies elsewhere, boosting capacity by +15% in the Australia to New Zealand market. (ANZ) had signaled that it would adjust its schedule in this market after telling (VOZ) their alliance would not be renewed in October.

The pair operate a joint venture on routes between the 2 countries and had authorization to coordinate their schedules. Without having access to the (VOZ) flights, (ANZ) has to step up its own flights on certain routes. (ANZ) currently has about 170x-weekly return services between Australia and New Zealand, and (VOZ) has up to 100x-.

(ANZ)’s new routes, scheduled to start in December, will be between Brisbane, Australia and New Zealand cities Wellington and Queenstown. In addition, (ANZ) will add frequencies on routes from Christchurch, New Zealand to Australian cities in October, giving it 2x-daily service on certain days to Brisbane, Melbourne and Sydney. Extra capacity will also be deployed on routes from Auckland to the 3 largest Australian cities.

In addition, (ANZ) said all of its customers traveling on Virgin Australia (VOZ) operated flights after October 27 will be rebooked on (ANZ) airplanes. More details are expected to be announced regarding aspects such as frequent flyer programs and lounge access.

Virgin Australia (VOZ) is increasing routes and frequencies to New Zealand following the termination of its alliance with Air New Zealand (ANZ), which becomes effective in October.

The new flights are needed because (VOZ) is losing services currently provided by Air New Zealand (ANZ) under their joint venture (JV) agreement. (ANZ) sparked the breakup by deciding not to renew the partnership when its authorization expires in October. Under the (JV), the pair coordinated scheduling and shared revenue on routes between the 2 countries.

(VOZ)’s move to add flights, follows a similar step by (ANZ) as the airlines prepare to transition from partners to rivals. (ANZ) recently announced it will introduce 2 new routes as well as adding frequencies on others, which will boost its capacity by 15% in the Australia to New Zealand market.

The 2 routes being added by (VOZ) are between Sydney and Wellington, New Zealand with 5x-weekly, and between Melbourne, Australia and Queenstown, New Zealand with 4x-weekly flights. They will be operated by Boeing 737-800s from October 28. (ANZ) already serves both these routes, and they are also contested by Qantas Group carriers.

(VOZ) is increasing capacity on 3 of its existing routes into the key Auckland market. It will add 8x-weekly Sydney to Auckland flights, giving it a total of 19. Melbourne to Auckland flights will increase from 10x- to 14x-weekly, and Brisbane to Auckland will rise from 12x- to 14x-. In comparison, (ANZ) has up to 6x-daily on Auckland to Sydney, and up to 5x-daily flights on Auckland to Melbourne.

(VOZ) is also reducing frequencies on some routes as it reshuffles its Australia to New Zealand network, cutting Melbourne to Christchurch flights from 11x- to 7x-weekly, and Brisbane to Wellington flights from 14x- to 9x-. However, (VOZ) stressed its commitment to both these markets. Other flights are being retimed.

(VOZ) noted it has had a presence in New Zealand since 2004, and signaled that it will be announcing further initiatives in this market soon.

News Item A-2: Rolls-Royce (RRC) has warned airlines that additional checks of its (Trent 1000) engine powering the Boeing 787 will be needed to resolve ongoing issues with the engine’s compressor. (RRC) said it wants to carry out additional inspections, on top of those previously planned to better understand the durability of the Package C compressor of the (Trent 1000), which is featured on nearly 200 787s.

"Rolls Royce Engine Blade Fault Severely Curtails 787 Extended Twin engine OPerationS (ETOPS)" by Guy Norris (ATW) Plus, April 16, 2018.

Significantly reduced Extended Twin engine OPerationS (ETOPS) and performance limits plus a new set of mandatory inspections for operators of Rolls-Royce (RRC) (Trent 1000) Package C-powered Boeing 787s are set to cause further disruption to a fleet already under strain from earlier problems and replacements. In addition, pressures on (RRC)’s test and overhaul capacity caused by tackling problems associated with the earlier generation (Trent 1000) family have already indirectly triggered delays to deliveries.

* "2 Air New Zealand 787s Grounded After Engine Inspections" by
Adrian Schofield (avweekscho@gmail.com), April 23, 2018.

Air New Zealand (ANZ) grounded 2 of its Boeing 787-9s April 21 for what could be an extended period after some of the 787 fleet’s engines failed inspections directed by safety regulators.

4 of (ANZ)’s Rolls-Royce (RRC) (Trent 1000) engines have had to be sent to a (RRC)'s facility in Singapore for repairs, an (ANZ) spokesperson told (ATW)’s sister publication Aviation Daily. After swapping some of the (Trent 1000)s within the fleet, 2 of (RRC)’s 11 787-9s will be left without engines.

The latest inspections were carried out after the (FAA) and the European Aviation Safety Agency (EASA), in collaboration with the manufacturer, identified new concerns with intermediate pressure compressor blade fatigue and cracking. The issue requires more urgent attention than had previously been advised, the regulators said.

Operating restrictions and additional inspections were ordered by the (FAA) and the (EASA), and other national aviation authorities, including New Zealand’s, have endorsed these actions. The new measures apply to the Package C series of (Trent 1000)s with >300 cycles. (ANZ) had 9 engines in this category, and all have now been inspected.

(ANZ) noted that because of the large number of engines affected globally, there is “very high demand on (RRC)’s maintenance facility meaning it may take a number of months before (ANZ)’s engine repair work can be completed.” (RRC) has said that the newest inspection requirements apply to 380 engines.

(ANZ) has already been reshuffling its fleet and making changes to its schedule to accommodate the inspections and operating restrictions, which reduced the limits for flights using Extended-range Twin-engine OPerations performance Standards (ETOPS). Many flights have had to be rescheduled, and some canceled. More schedule changes will be announced in coming days.

(ANZ) is also planning to bring in extra airplanes, and will once again lease airplanes from European operator Hi Fly (LXA) next month. (ANZ) wet-leased 2 wide bodies from (LXA) recently to cover for previous 787 engine issues, although these have now been returned. Aviation Daily understands (ANZ) is considering dry-leasing some 777s in the longer-term, although the source of these airplanes is unknown.

(ANZ) “remains fully compliant with the directives” from the (FAA), (EASA) and Rolls-Royce (RRC), said David Morgan, (ANZ)’s Chief Operational Integrity & Standards Officer. “Like Air New Zealand, aviation regulators prioritize safety over everything else and (EASA) and the (FAA) have taken a very conservative approach in the checks and restrictions they’ve put in place around these engines,” Morgan said.

June 2018: News Item A-1: Rolls-Royce (RRC) is widening the scope of checks on the (Trent 1000) family of engines after issues were found in other derivatives of the Boeing 787 engine.

News Item A-2: Air New Zealand Fined US$15 Million As Decade-Long Cartel Case Nears an End" by Stephen Letts, (ABC) News (Australia), June 27, 2018.

It has taken more than a decade, but a US$15 million fine against Air New Zealand (ANZ) has nearly delivered the Australian Competition and Consumer Commission a complete victory against global airlines which ran a price-fixing air cargo cartel. The Federal Court ruling against (ANBZ) takes the total penalties in the long-haul case to US$113.5 million, with 14 of the 15 cases now settled.

Qantas (QAN) still holds the dubious distinction of paying the heftiest penalty of US$20 million back in 2008. (QAN) and British Airways (BVAB) were the 1st successful Australian prosecutions back in 2008. (QAN) was also hit by a US$70 million fine in the USA over the same allegations, as part of almost US$1 billion in fines handed out to global carriers operating cargo businesses through major Asian hubs. A former senior (QAN) executive in charge of USA freight operations received a 6-month jail term and a US$20,000 fine as part of the global investigation.

* Longest action in Australian competition history.

While it involved several separate cases, it is believed the action is the longest to have been run by the (ACCC), or its predecessor the Trades Practices Commission. While some carriers settled early in 2008 and 2009, the last case did not start until 2010.

(ANZ), along with Indonesia's Garuda (GIA), took a longer route than the others charged, having initially won their cases in the Federal Court in 2014, only to lose on appeal before the Full Court 2 years later. The pair then lost an appeal in the High Court last year.
(GIA)'s day of reckoning is imminent after the Federal Court reserved its decision last week. (GIA) could end up with the biggest fine.
The (ACCC) has asked the court to fine (GIA) between US$20 million and US$28 million to finally wrap up the affair.

(ANZ) was ordered to pay US$11.5 million for price fixing in relation to fuel surcharges imposed for cargo from Hong Kong to Australia. An additional US$3.5 million price-fixing penalty was handed out in relation to the insurance and security surcharge from Singapore to Australia.

(ANZ) also agreed to pay US$2 million of the (ACCC)'s legal bills.
"These illegal price-fixing agreements unfairly reduced competition for the transport cost for goods flown into Australia," (ACCC) Commissioner Sarah Court said. "This decision sends a strong warning to overseas and domestic operators that the (ACCC) can and will continue to defend competition and the rights of Australian customers and businesses by taking action against anti-competitive conduct.
"Our efforts over the last decade and these significant penalties make clear the (ACCC)'s commitment to tackling cartels."

July 2018: On October 28, a joint service between Singapore Airlines (SIA) with Air New Zealand (ANZ) will see a 3rd daily flight between Singapore and Auckland, while a 4th daily Haneda service will be introduced from December 28. These are subject to regulatory approvals.

August 2018: News Item A-1: 777-35EER (32644, ZK-OKT), ex-(B-16717), leased from (EVA) Air.

News Item A-2: See video of (ANZ) 777:

September 2018: News Item A-1: Air pollution, especially in large Asian cities, is believed to be 1 cause of reliability issues that have affected a large portion of the Rolls-Royce (RRC) (Trent 1000)-powered Boeing 787 fleet. But (RRC) said it is close to fielding a final fix to the problems. Dozens of 787s have been sitting engine-less at airports around the world while the (Trent 1000)s are inspected and modified. Air China (BEJ), Air New Zealand (ANZ), British Airways (BAB) and Virgin Atlantic (VAA) are among those affected.

News Item A-2: 777-212ER (30872, ZK-OKJ), ex-(9V-SVG) leased from Singapore Airlines (SIA).

News Item A-3: "Analysis: The Dilemma of the High-tech Aero-engine"
by (ATA) Editor, Karen Walker, ATWOnline, September 24, 2018.

The irony is woefully obvious. Aero engines developed for the newest generation of airliners are designed and built to be super fuel efficient, quiet and environmentally clean. But the Rolls-Royce (RRC) (Trent 1000), which powers around 45% of the world wide Boeing 787 fleet, has been brought down, in part at least, by something as common as air pollution.

A large portion of (RRC) (Trent)-powered 787s have been affected by the engine reliability issues. Dozens of 787s have been parked at airports around the world, their engines removed to be inspected and modified. Air China (BEJ), Air New Zealand (ANZ), British Airways (BAB) and Virgin Atlantic (VAA) are among those affected. (ANZ) has suspended routes from its international network partly because of airplane shortages caused by the issue after being forced to make significant schedule changes earlier to accommodate the inspections and repairs mandated for its 787-9s. Many other airlines are also experiencing schedule disruption because of the engine issues.

The baseline problem, (RRC) discovered, was caused by “hot corrosion” in which the thermal barrier coating on the (IP) turbine blades was stripped away prematurely, exposing the underlying material to low cycle fatigue. Analysis of the phenomena indicated it was tied primarily to operations in and around airports in the Asia-Pacific region with high atmospheric sulfur concentrations. “It’s fundamentally pollution around big cities that have ‘dirty’ industries,” Rolls Large Engines Chief Engineer Frank Haselbach explained.

Adding to (RRC)’s challenges, fatigue cracks were also discovered in the (Trent)s, prompting an (EASA) engine-inspection directive issued in tandem with an airplane-level (FAA) order limiting extended range twin engine operations (ETOPS) flights to 140 minutes from the nearest suitable airport for certain airplanes, reduced from the 787’s normal 330 minutes. The order applied to (Package C)-powered airplanes with at least 1 engine having accumulated 300 or more cycles since new or the last (IP) compressor blade overhaul.

(RRC) said in mid-September it was completing development of the final element of a suite of modifications to fix the issues and was confident the compressor blade redesign would be cleared for introduction in the next few months. But the cost to (RRC) and to its customers, the affected airlines, is in the multi-millions of dollars.

None of (RRC)’s engine manufacturer rivals (the (GE) (GEnx) is the alternative engine option for the 787) are crowing, however. Wherever you look in new aero-engine development, there are cases of in-service problems.

The other most notable problem has been the multiple in-service issues with the Pratt & Whitney (PRW) (PW1000G) geared turbofan (GTF) that powers Airbus A320neos and A220s. This year, a problem surfaced with that engine’s knife edge seal. This impacted around 100 engines and cost (PRW) some $50 million. The seal was introduced into new production engines in mid-2017 to eliminate an inspection requirement, but problems began to emerge within weeks of entry-into-service on new A320neos. Fractures caused rotor vibration and stalling in 4 engines, 2 of which resulted in in-flight shutdowns and 2 in rejected takeoffs.

The incidents led (PRW) and Airbus to issue urgent recommendations to affected A320neo operators to make sure aircraft had no >1 affected engine installed and banning (ETOPS) flights. By the time the problem became apparent, 43 engines had entered service on 32 airplanes.

(PRW) and (RRC) each identified the problems, found the fixes and have worked round the clock with their customers to get airplanes back in the air. What seems to be happening is the engine manufacturers are being caught by problems in service that were not seen in development; even though they have all significantly increased the amount of development testing they do to ensure maturity at entry into service. The (Trent) corrosion issue is one that had not been seen before, presumably because the materials used are different, so it was not anticipated.

The cracking issue also seems to show how even small changes in design can cause problems. In the (GTF) case, (PRW) changed the knife seal (a seemingly miniscule component) and suddenly started seeing problems. It also seems that these new engines are so pushing the boundaries of technology, that the unforeseen becomes more probable. To be fair to the manufacturers, the airlines (and, indeed, the regulatory and national authorities) insist on higher and higher emissions standards coupled with better and better fuel efficiencies. So the engine manufacturers respond with technology. They say they will increase development testing even more for their next engines to ensure service entry mature, but it will be hard to guarantee there will be no new problems.

After all, if polluted city air was not foreseen as a corrosion factor by engineers who specialize in designing eco-friendly aero-engines, what else is out there to surprise the industry?

— Guy Norris and Graham Warwick contributed to this article.

October 2018: News Item A-1: "Air New Zealand, (SIA) Partnership Approved for 5 More Years" by Adrian Schofield (adrian.schofield@informa.com), October 5, 2018.

Singapore Airlines (SIA) and Air New Zealand (ANZ) have been granted regulatory approval to continue their joint venture partnership for another 5 years, and the pair are preparing to introduce more combined services.

New Zealand’s Ministry of Transport renewed its authorization of the partnership through March 2024. The 2 carriers began their alliance in January 2015.

Since the partnership was launched, the airlines have increased their flight frequency on routes between New Zealand and Singapore. During the past 4 years, the carriers have boosted combined seat capacity by >25% on routes between New Zealand and Singapore, they said in a joint statement.

The partners intend to add a 3rd daily flight between Auckland and Singapore on October 28. It will be operated by either Air New Zealand (ANZ) or Singapore Airlines (SIA) depending on the season. The 2 airlines will jointly operate a total of 35 return flights per week between the 2 countries after the new flight is added.

News Item A-2: (AAR) (AFD)/(ALC) announced power-by-the-hour component support contracts from Air Malta (MLT) for 3 A320neos and Air New Zealand (ANZ) for 30 A320ceos and 18 A320neos (ANZ deal includes reciprocal repair work with (ANZ) for the Asia-Pacific region).

News Item A-3: "Africa’s 1st Rolls-Royce (RRC) Lease Engine Storage Facility Opens - The facility is located at South African Airways (SAA) Technical’s Johannesburg base" by James Pozzi (MRO-Network.com), October 04, 2018.

Rolls-Royce (RRC) has opened a new lease engine storage location in Johannesburg, South Africa which will target greater aircraft availability across the engine maker’s aftermarket network. Based at South African Airways Technical (SAAT) premises close to the city’s Oliver Tambo International Airport, the center will store a mix of Rolls-Royce (RRC) engines used by African operators powering commercial aircraft and business jets.

According to a news release, the center is certified to store engines including the Tay; BR710; BR715; RB211-524; RB211-535; Trent 500; Trent 700; Trent 800; Trent 900; Trent 1000; Trent XWB and Trent 7000, which is due to enter into service this year powering the A330neo.

(RRC) has provided technical training to (SAAT) staff to enable them to carry out work on the engines in storage. Ultimately, (SAAT) wants (SAAT)’s mechanics (MT) to perform numerous inspection and on-wing services to (RRC) engine operators across Africa.

“The opening of this facility marks the start of a journey that will see (SAAT) play an expanding role in our development of availability services across Africa as it increases its capability,” said Kevin Evans, (RRC)’s VP Customers Africa.

News Item A-4: Rolls-Royce (RRC) has acknowledged it has fallen behind on (Trent 7000) shipments to Airbus (EDS) that will cause knock-on delays to A330neo deliveries later this year and into 2019. News of the (Trent 7000) setback comes on the heels of fresh complaints from operators affected by extended (Trent 1000)-related groundings of Boeing 787s. (RRC) shares value lost as much as 14% on the news and at 1 point declined so precipitously that trading was suspended temporarily.

November 2018: News Item A-1: Air New Zealand (ANZ) launched its inaugural service between Auckland (AKL) and Taipei Taoyuan (TPE) on November 1. (ANZ) will operate the 8,884 km connection 3x-weekly using its 787-9s facing no direct competition.

“We’re excited to offer our customers a direct link between New Zealand and Taipei. Demand for the 3x-weekly service has been strong, particularly around the Chinese New Year period,” said Cam Wallace, Chief Revenue Officer, (ANZ). “New Zealand already welcomes around 42,000 visitors annually from the Taiwan market and we expect this number will grow further. With a flight time of just >11 hours, we also expect our Kiwis and many others will be keen to check out this new Asian destination.”

News Item A-2: "Eva Air Signs Air New Zealand Code Share Partnership"
by AirTravelNews, 2018-11.

(EVA) Air and Air New Zealand (ANZ) have signed a code share deal to expand their networks in NE Asia and Oceania. Passengers of the 2 Star Alliance (SAL) members will have access to code share options operated by (EVA) from Taipei to major destinations in Japan and South Korea. Passengers will also have code share options from Taipei to Auckland and onto major cities in New Zealand, as well as Brisbane to Auckland and Christchurch, with flights operated by (ANZ).

From the 2nd half of December 2018, passengers will be able to travel on the code share flights. (EVA) Executive VP Corporate Planning, Albert Liao, said: “The new code share agreement will further strengthen Star (SAL) Alliance’s flight network and offer passengers enhanced options to plan both business and leisure itineraries from Taiwan and New Zealand. “With just 1 easy stop in Taipei, passengers can take advantage of (EVA)’s flexible flight schedule to conveniently fly onward to Japan and South Korea.” The Star (SAL) Alliance network currently offers >18,800 daily flights to 1,317 airports in 193 countries.

(ANZ) Chief Network Strategy & Alliances Officer, Nick Judd, said: “Air New Zealand is excited to be working closely with Eva Air (EVA), an airline well-respected in the market for its airplanes and customer offering. “This agreement with (EVA) will leverage the strengths of each airline’s network, ultimately making travel easier and more convenient for customers.” (EVA) and (ANZ) have signed a code share deal to expand their networks in NE Asia and Oceania.

Passengers of the 2 Star (SAL) Alliance members will have access to code share options operated by (EVA) from Taipei to major destinations in Japan and South Korea. Passengers will also have code share options from Taipei to Auckland and onto major cities in New Zealand, as well as Brisbane to Auckland and Christchurch, with flights operated by (ANZ). From the 2nd half of December 2018, passengers will be able to travel on the code share flights. The Star (SAL) Alliance network currently offers >18,800 daily flights to 1,317 airports in 193 countries.

News Item A-3: "Air New Zealand on Cost-saving Drive" by (ATW) Adrian Schofield (adrian.schofield@informa.com), November 30, 2018.

Air New Zealand (ANZ) is undertaking significant cost-cutting efforts in response to higher fuel prices. (ANZ) has identified about NZ$30 million/$20.6 million in costs that can be removed before July 1, (CEO) Christopher Luxon told employees in a November 26 memo.

“These savings will come from a mix of turning off programs of work, resource reductions and tightening up on discretionary spend,” he said. In addition, Luxon said he has tasked his senior executives with “identifying further long-term sustainable cost savings” before the end of January, to take effect from the beginning of (ANZ)’s next fiscal year on July 1.

Luxon noted that although fuel prices has dropped recently, “it is still significantly higher than 12 months ago and we need to make sure the business is resilient in a high fuel cost environment.” (ANZ)’s hedging program reduces some of the fuel price volatility. This will help in the current fiscal year, but it is “only a short-term solution,” Luxon said. “To position our business for continued strength over the longer term, we must use this time to adjust” to higher fuel.

(ANZ)’s fuel bill is expected to be >NZ$1.3 billion for the current fiscal year, up from NZ$987 million the prior year and NZ$827 million the year before that.

December 2018: News Item A-1: "Air New Zealand Engineers Vote to Strike December 21, 2018" by (ATW) Adrian Schofield (adrian.schofield@informa.com), December 7, 2018.

Air New Zealand (ANZ) Engineers (MT) have scheduled a strike on December 21 that threatens to disrupt travel plans of nearly 42,000 customers on 1 of (ANZ)’s busiest travel days, although further negotiations are planned in an effort to resolve the contract dispute.

The strike announcement on December 6 followed a vote taken earlier this week by nearly 1,000 workers represented by the Aviation & Marine Engineers Association. The unions said 95% of those voting were in favor of strike action. (ANZ) said the unions have also advised (ANZ) to expect further industrial action.

The unions said they have agreed to a mediation meeting with (ANZ) Engineering Management on December 10. The unions said they will “carry on bargaining in good faith in the hopes of reaching a deal.” (ANZ) also said it remains “committed to working closely with the engineers (MT)’s unions to reach a reasonable agreement and avoid strike action if at all possible.”

(ANZ) said nearly 42,000 customers are booked to travel domestically and internationally on December 21, and they “now face potential flight cancellations.” However, (ANZ)’s regional turboprop operations will not be affected as their engineers are in a different work group.

The contract negotiations involved in the dispute cover line and base maintenance engineers, as well as aircraft logistics and related staff. The unions note this includes not just engineers, but store workers and aircraft cleaners.

(ANZ) said the negotiations have only been underway with this group for 6 weeks, so “industrial action is entirely premature.” According to (ANZ), the average annual wage for the affected workers is NZ$115,000/$79,000, with 170 of them earning >NZ$150,000. (ANZ) said these workers have had annual pay raises for the past 12 years and have “so far rejected recent proposals by (ANZ)” that include an immediate +2% pay raise, followed by a +3% increase after 12 months, and a further pay review in mid-2021.

(ANZ) also proposed standardizing overtime pay at 150% of the regular pay rate, compared to the current overtime rates that are a mixture of 150% and 200% of regular pay. Included in the offer was a NZ$6,400 one-off payment to compensate the change in overtime rates. Other features of the offer included an extra week of annual leave after 5 years’ service.

The unions noted (ANZ) has been making record profits and accused (ANZ) of taking “an unnecessarily aggressive approach” to negotiations. “This is not just about pay, it’s about repeated proposals by (ANZ) weeks out from Christmas to pay [engineers] less than colleagues who have already settled, and to cut into key conditions, including overtime rates.”

News Item A-2: "Air New Zealand, Engineers Reach Tentative Labor Deal to Avoid Strike" by Adrian Schofield, December 12, 2018.

Air New Zealand (ANZ) has reached a tentative deal with its Engineers’ (MT) unions that will avert a planned pre-Christmas strike. The agreement was achieved after 3 days of negotiations. Prior to this round of talks, the 2 unions representing engineers (MT) and other related workers had announced they would strike on December 21, 22 and 23.

(ANZ) is not releasing the details of the tentative agreement, as it still subject to a ratification vote by union membership.

New Zealand Prime Minister Jacinda Ardern had called for both sides to resolve the dispute as quickly as possible and avoid the strike.
(ANZ)’s earlier contract offer was rejected by the unions. This proposal included pay rises, but the unions were most concerned about changes to other working conditions such as overtime rates.

News Item A-3: Air New Zealand (ANZ) began up to 3x-weekly Auckland to Chicago O’Hare Boeing 787-9 service.

News Item A-4: "Christmas Wild Weather Causes Travel Disruptions" by
Radio New Zealand, December 26, 2018.

Flights to and from Wellington Airport have returned to normal, after wild weather across the New Zealand North Island caused fog to cover the city this morning. Fog in Wellington delayed a number of flights to and from Wellington Airport.

Some flights were delayed by more than an hour as airport staff waited for the fog to clear. Metservice says the bad weather which covered much of the country yesterday brought fog with it.

Meanwhile, State Highway 4 between Whanganui and Raetihi has been closed since last night. Bad weather on Christmas Day caused multiple slips in the area. (NZTA) says people should avoid the route and detours are in place.

MetService says less rain and more sun is expected in the build up to New Year's Eve.

There will be settled weather for many places at the end of this week, said MetService. Bay of Plenty and central North Island can expect showers on Thursday and Friday. Fiordland and Westland can expect rain during the weekend.

Eastern parts of the South Island are set to get hot weather during the weekend thanks to Northwesterlies.

January 2019: Air New Zealand New Safety Video a Smash Hit, by Airliner World 2019-01.

Air New Zealand's latest safety video ("It's Kiwi Safety") has got passengers tapping their feet all around the world, reaching a staggering 20 million views on social media since its launch. Filmed in the style of a music video, "It's Kiwi (a remake of the RUN-DMC song "It's Tricky) features some clever New Zealand themed lyrics.

The video also stars well-known Kiwi actor Julian Dennison (most recently in Deadpool 2) and talent from 30 community groups from across the country (making it the largest safety video produced in (ANZ)'s history.

Jodi Williams, (ANZ)'s General Manager Global Brand & Content Marketing is delighted the safety video has been so well received. "We've had terrific feedback from people right across the world. People seem to be its New Zealand-ness, the diversity it offers, as well as the catchy soundtrack."

The video can be viewed on (ANZ)'s social media channels.

February 2019: News Item A-1: At the 2019 Air Transport World (ATW) Annual Airlines Industry Achievement Awards, Air New Zealand receives the "Eco Airline of the Year Award" and the "Passenger Experience Achievement Award" being the only airline to receive 2 major awards.

News Item A-2: "Air New Zealand Takes Steps to Address Slowing Demand Growth" by (ATW) Adrian Schofield (adrian.schofield@informa.com), February 28, 2019.

Air New Zealand (ANZ) is adjusting its business plan in response to cooling demand and falling profits, and more changes could follow when (ANZ) completes a review of its operations. (ANZ) reported a net profit of +NZ$152 million/ $104 million for the 6 months through December 31, its fiscal 1st half, down -34% from NZ$232 million for the same period a year earlier.

(ANZ) “cannot ignore signals” that demand growth is slowing from its previous high levels, (CEO) Christopher Luxon said. In an investor presentation accompanying the results announcement, “weaker than expected” forward bookings for its fiscal 2nd half indicate “a shift in demand dynamics,” the airline said. This is most visible in the domestic and inbound tourism markets, and (ANZ) is “closely monitoring” other markets. (ANZ) is taking several measures to address the slowdown, Luxon said. (ANZ) recently announced a revised domestic fare structure to help stimulate demand. It also adjusted its capacity growth plans. Overall capacity is expected to increase by 4% for the full fiscal year, at the low end of its previous forecast of +4% to +6% growth.

The largest adjustment is in the short-haul international market, where capacity growth is expected to be 4% in the 2nd half, compared to a +7.9% increase in the 1st half. Full-year capacity growth in this market is expected to be 6%, down from the forecast range of 7% to -9%. (ANZ) had already signaled its weakening outlook. (ANZ) issued a downgraded profit forecast on January 30, estimating a pre-tax underlying profit for the full year of +NZ$340 million to NZ$400 million. Previous guidance in August projected an underlying profit of +NZ$425 million to +NZ$525 million.

(ANZ) has also launched a broad review of its fleet, network and cost base. The review is “progressing well,” Luxon said, and (ANZ) plans to release an update by the end of March. The focus is on a return to earnings growth, Luxon said.

Despite the review, (ANZ) is sticking to its timeline for a decision on a new wide body airplane order to replace its Boeing 777-200ER fleet. (ANZ) intends to announce its choice in the fiscal 4th quarter (the 3 months through June 30) and wants deliveries of the new type to begin in late 2022.

Deliveries from existing orders will also continue. (ANZ) is slated to spend $1.2 billion on new aircraft through (FY) 2022, although the rate of deliveries will slow after about 18 months. (ANZ) is scheduled to take delivery of 7 Airbus A320/A321neos by June 30, joining the 3 A321neos that were delivered late last year. 2 ATR72-600s are also set to arrive in the current fiscal half-year. In the next fiscal year, (ANZ) expects to add +5 more neos, a Boeing 787-9 and 6 ATRs.

(ANZ)’s 1st-half operating revenue was up +7.1% to NZ$2.9 billion, compared to NZ$2.7 billion a year earlier, although this was more than offset by rising fuel and operating costs. Fuel costs increased +28% to NZ$131 million, after hedging gains of NZ$15 million. Traffic increased +5.3% year-over-year, with capacity rising +4.3%, resulting in load factor improving +0.9 point to 83.4% LF. Passenger unit revenue increased +2.1%.

(ANZ) has experienced significant disruptions because of the need for unscheduled maintenance on the Rolls-Royce (RRC) engines in its 787 fleet. (ANZ) had up to 5 787s grounded in the fiscal 1st half, and currently has 2 out of operation. There will be just 1 grounded after April 1, and the engine issues are expected to be “fully resolved” by September, Luxon said.


Click below for photos:
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ANZ-777-319ER - 2011-11
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ANZ-777-319ER-ALL BLACK-A - 2011-12
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March 2019:

0 737-219 (JT8D), 6 SOLD TO (AEJ) 1999-10 (23472 TO (AEJ) 1999-11).

0 737-219 (JT8D-15A) (1194-23472 SOLD TO AIRFI GROUP 1999-12), 1 DAMP LEASED TO (FRS). 3 RETIRED 2001-092.

0 737-219C (JT8D-15A) (928-22994, /82 ZK-NQC), SOLD TO (ANX) 2000-12. FREIGHTER.

0 737-3K2 (CFM56-3C1) (2731-26318, /95 ZK-NGK; 2722-28085, /95 ZK-NGM), EX-(TAV), (ILF) 12 YEAR LEASED. 67PY, 66Y.

0 737-3K2 (CFM56-3C1) (2721-27635, /95 ZK-SJE), EX-(TAV), RETURNED FROM (SPT) 2005-09. RETURNED. 67PY, 66Y.

0 737-3U3 (CFM56-3C1) (2992-28742, /98 ZK-FRE), HELLER LEASED, RETURNED, TO (WEB) 2009-12. 67PY, 66Y.

0 737-3U3 (CFM56-3C1) (2966-28732, /97 ZK-NGD), LEASED TO & RETURNED FROM (LOT). RETIRED IN 2015. 67PY, 66Y.

0 737-3U3 (CFM56-3C1) (2969-28733, /97 ZK-NGE; 2974-28734, /97 ZK-NGF), (DEA) LEASED 1998-12. 28734 RETURNED, TO (FRO). RETIRED IN 2015. 67PY, 66Y.

0 737-3U3 (CFM56-3C1) (2988-28738, /98 ZK-SJC), EX-(N308FL) 2005-06. RETIRED IN 2015. 67PY, 66Y.

0 737-3Y5 (CFM56-3C1) (2467-25614, 9H-ABS), (MLT) WET-LEASED 2003-01. RETURNED. 67PY, 66Y.

0 737-319 (CFM56-3C1) (3123-25606, /99 ZK-NGG; 3126-25607, /99 ZK-NGH; 3128-25608, /99 ZK-NGI; 3130-25609, /99 ZK-NGJ), RETIRED IN 2015. 67PY. 66Y.

0 737-33A (CFM56-3B2) (1729-24094, /89 ZK-), EX-(NCI), (ANZES) "D" MAINTENANCE CHECK, WET-LEASED TO (PMZ) 2003-10. RETURNED, LEASED TO (NWG) 2005-04. 67PY, 66Y.

0 737-33A (CFM56-3C1) (3007-27459, /98 ZK-NGP; 3021-27460, /98 ZK-NGR), EX-(9G-ADH & 9G-ADI) 2008-05. RETIRED IN 2015. 67PY, 66Y.

0 737-33R (CFM56-3C1) (2881-28868, /97 ZK-SJB), EX-(VSP), 2000-05, (OXA) LEASED. RETIRED IN 2015. 67PY, 66Y.

0 737-33R (CFM56-3C1) (2975-28873, /97 ZK-NGA), (GEF) LEASED 1998-01, PAINTED IN "MILLENNIUM" COLORS. TRANSFERRED TO (SPT) 2004-09. RETURNED, LEASED TO (ENA) 2006-03. 67PY, 66Y.

0 737-33S (CFM56-3C1) (3012-29072, /98 ZK-NGN), EX-(SBL), (PEB) LEASED 2001-04. RETURNED. 67PY, 66Y.

0 737-36Q (CFM56-3C1) (3013-29140, /98 ZK-NGB; 3057-29189, /98 ZK-NGC), (BOU) LEASED 1998-08. 29140; & 29189 RETURNED, LEASED TO (SHG) 2004-05. 67PY, 66Y.

0 737-37Q (CFM56-3B2) (2961-28548, /97 ZK-NGO), EX-(G-OAMS), (GEF) LEASED 2002-10. RETIRED IN 2015. 67PY, 66Y.

0 747-219B (RB211-524D4), 1 LEASED TO (APC), 5 SOLD TO (VAA) (563-22725, TO (VAA) 2000-02).

0 747-2D7 (CF6-50E2) (21782, EX-(TII), RETURNED TO (TLS), LEASED TO (GUN).

0 747-4F6 (CF6-80C2B1F) (1161-27602, /98 ZK-SUJ "AUCKLAND"), EX-(PAL), (ILF) 43 MONTH LEASED, LEASED TO 2001-04 AND RETURNED FROM (ANS). RETURNED. 46C, 39PY 294Y.

0 747-419 (RB211-524G/H-T) (756-24386, /89 ZK-NBS "BAY OF ISLANDS;" 815-24855, /90 ZK-NBT "KAIKOURA;" 933-25605, /92 ZK-NBU "ROTORUA), 24386; SCRAPPED & PARTED OUT IN THE USA 2009-06. 24855; RETURNED AFTER STORAGE 2010-08. ALL RETIRED. 46F, 39PYC, 294Y.

0 747-419 (CF6-80C2B1F) (1180-26910, /98 ZK-NBV "CHRISTCHURCH" - IN "LORD OF RINGS" COLORS; 1228-29375, /99 ZK-NBW "WELLINGTON" - IN NZ ALL BLACKS RUGBY WORLD CUP TEAM COLORS), (ILF) LEASED 1999-09. RETIRED 2014-09. 46C, 39PY 294Y.

0 747-441 (CF6-80C2B1F FADEC) (971-24957, /93 ZK-SUI "QUEENSTOWN"), EX-(VAR), (ILF) LEASED. RETURNED. 46C, 39PY, 294Y.

0 747-475 (CF6-80C2B1F) (855-24896, /91 ZK-SUH "DUNEDIN"), EX-(VAR), (ILF) LEASED, WFU 2002-01 & RETURNED; LEASED (AGAIN) 2002-05. RETIRED 2014-09. 46C, 39PY, 294Y.

0 767-219ER (CF6-80A) (124-23326, /85 ZK-NBA "AOTEARROA;" 134-23327, /86 ZK-NBB "ARAHINA;" 149-23328, /86 ZK-NBC "ATARAU"), (GEF) LEASED), 23226 LEASED TO (ANS) 2001-04. ALL SOLD TO (GEF) 2001-08, INCLUDING 7 FROM (ANS). 23250, ZK-NBJ LEASED 2001-08, RETURNED 2002-11, PARTED OUT 2003-07. 23328 & 23327 RETURNED TO (GEF) 2004-05. 23326 WFU IN STORAGE 2005-03. ALL 767'S (ETOPS) EQUIPPED. ALL (ANZ) 767 AIRPLANES WITHDRAWN FROM SERVICE 2017-03. 24C, 176Y.

0 767-319ER (CF6-80C2B6F) (371-24875, /91 ZK-NCE; 413-24876, /92 ZK-NCF; 555-26264, /94 ZK-NCH; 785-29388, /00 ZK-NCN), (ILF) LEASED. ALL (ANZ) 767 AIRPLANES WITHDRAWN FROM SERVICE 2017-03. 24C, 46PY, 153Y.

0 767-319ER (CF6-80C2B6) (509-26912, /93 ZK-NCG - - SEE PHOTO - - "ANZ-767 WINGLETS-2009-07;" 677-28745, /97 ZK-NCL), ALL (ANZ) 767 AIRPLANES WITHDRAWN FROM SERVICE 2017-03. WINGLETS. 24C, 210Y.

0 767-319ER (CF6-80C2B6) (558-26913, /94 ZK-NCI; 574-26915, /95 ZK-NCJ; 663-26971, /97 ZK-NCK), ALL (ANZ) 767 AIRPLANES WITHDRAWN FROM SERVICE 2017-03. WITH WINGLETS. 24C, 53PY; 210Y.

0 767-319ER (CF6-80C2B6F) (808-30586, /00 ZK-NCO), (GEF) LEASED 2000-08. RETURNED. 24C, 212Y.

0 767-35DER (322-24865, SP-LPA), RETURNED TO (LOT).


9 +9 OPTIONS 777-219ER (TRENT 895) (534-29404, /05 ZK-OKA; 537-34376, /05 ZK-OKB; 546-34377, /06 ZK-OKC- - SEE PHOTO - - "ANZ-2014-07-NEW COLORS-777-219ER;" 550-29401, /06 ZK-OKD; 564-32712, /06 ZK-OKE; 575-34378, /06 ZK-OKF; 591-29403, /06 ZK-OKG; 605-34379, /07 ZK-OKH), 4 (ILF) LEASED. 26C, 36PY, 242Y.

8 777-319ER (GE90-115BL2) (902-38405, /10 ZK-OKM - SEE PHOTO; 911-38406, /11 ZK-OKN; ZK-ONO "Hobbit The Airline of Middle-earth" 2014-04 SEE PHOTO; 921-38407, /11 ZK-OKQ "SMAUG"; 972-39041, /11 ZK-OKP; 984-40689, /12 ZK-OKQ "ALL BLACKS;" 44546, ZK-OKR; 44547, ZK-OKS), 44C, 44PY, 244Y.

1 777-35EER (32644, ZK-OKT), (EVA) AIR LEASED 2018-08.

1 +1 ORDER 777-300ER (GE90-115BL2), (ALE) LEASED, 44C, 44PY, 244Y.

11 +1/6 ORDERS 787-919 DREAMLINER (TRENT 1000-J) (34334, KZ-NZE, 2014-07; ZK-NZF; ZK-NZG; 37964, ZK-NZH, 2015-10 - SEE PHOTO "ANZ-737-9 - 2015-10.jpg"), 18 PC (LIE-FLAT, 21 PY), 263Y (INCLUDING 14 "SKYCOUCH" ROWS).


2 787-9 (TRENT 1000-J), (KFW) (IPEX) BANK FINANCED 2017-12. 18 PC (LIE-FLAT 21 PY), 263Y.


2 A320-200, (SIL) LEASED.

1 A320-214 (4584, ZK-OJQ), (ALC) LEASED 2011-02.

7 +4/11 ORDERS A320-232 (V2527-A5) (6182, ZK-OXF, 2014-07) REPLACED 15 737-300, 6 WITH SHARKLETS.

8 A320-232 (V2527-A5) (2112, /03 ZK-OJC; 2130, /03 ZK-OJD; 2148, /03 ZK-OJE, 2004-01; 2153, /03 ZK-OJF; 2257, /04 ZK-OJH; 2297, /04 ZK-OJI; 2403, /05 ZK-OJJ; 2445, /05 ZK-OJK; 2500, /05 ZK-OJL, LEASED TO (SPT); LATER 2006-05 LEASED TO (SGU) & WAS W/O & DESTROYED IN CRASH 2008-11; 2553, /05 ZK-OJM, LEASED TO (SPT); RETURNED FROM (SPT) 2006-02), 5 LOMBARD AVIATION CAPITAL LEASED. 12C, 30PY, 126Y.

5 A320-232 (V2527-A5) (2085, /03 ZK-OJA; 2090, /03 ZK-OJB; 2173, ZK-OJG; 2594, /05 ZK-OJN, LEASED TO (SPT); 2663, /06 ZK-OJO, WET-LEASED TO (SPT) 2006-01), 2594; RETURNED FROM (SPT) 2005-11. (ILF) LEASED. 12C, 30PY, 126Y.

1 A320-232 (V2527-A5) (4553, /10 ZK-OAB, 2011-01 - - SEE PHOTO - - "ANZ-A320-ALL BLACK-2011-01"), IN "ALL BLACK" LIVERY FOR 2011 RUGBY WORLD CUP. 69PY, 102Y.

3 A320-232 (V2527-A5) (4584, /11 ZK-OJQ; 4884, /11 ZK-OJR; 4926, /11 ZK-OJS), 69PY, 102Y.

4 A320-232 (V2527-A5) (5629, ZK-OXA; 5682, ZK-OXB; ZK-OXC; 5962, /14 ZK-OXD, 2014-02 - - SEE PHOTO - - "ANZ-A320-232-2014-02"), EX-(F-WWBH), 2013-06. 69PY, 102Y.

10 A320neo (PW1100G), WITH SHARKLETS.

3 ORDERS (2019-02) A321neo (PW1100G), WITH SHARKLETS:

1 A330-200, HI FLY (LXA) SHORT TERM LEASED 2017-12.

1 A340-300, HI FLY (LXA) SHORT TERM LEASED 2017-12.

11 ATR72-500 (PW127) (597, /99 ZK-MCA; 598, /99 ZK-MCB; 600, /99 ZK-MCF; 624, /99 ZK-MCJ; 628, /99 ZK-MCO; 630, /00 ZK-MCP; 632, /00 ZK-MCU; 646, /00 ZK-MCW; 687, /02 ZK-MCX; 703, /03 ZK-MCY; 714, /04 ZK-MCC), TO REPLACE ATR 72-212'S, MT COOK OPERATIONS, 66Y.

10 +19 ORDERS ATR72-600 (PW127) (1051, /12 ZK-MVA; 1065, /12 ZK-MVB - - SEE PHOTO - - "ANZ-ATR72-600 - 2012-10;" 1507, ZK-MVV, 2018-08), MT COOK OPERATIONS. 68Y.


23 BOMBARDIER Dash 8-311Q (PW123) (611, /05 ZK-NEA; 671, /09 ZK-NFI), FOR AIR NELSON OPERATIONS. 50Y.


Click below for photos:



Christopher was previously (ANZ) Group General Manager International Airline.


















BRYAN WYNESS, VP FLIGHT OPERATIONS (AKLOONZ), (bryan.wyness@airnz.co.nz).












Cam can be seen as 4th person on left on photo in Background "ANZ-2018-11 AKL to Taipei.jpg" (with his hands in his pockets!)











(jeff.brown@airnz.co.nz) (AKLOYNZ).
























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