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ESTABLISHED AND STARTED OPERATIONS IN 2002. SUBSIDIARY OF QANTAS AIRWAYS (QAN), FOR NEW ZEALAND OPERATIONS. DOMESTIC, SCHEDULED, PASSENGER, JET AIRPLANE SERVICES.
PO BOX 73156
AUCKLAND INTERNATIONAL AIRPORT
AUCKLAND 2150, NEW ZEALAND
NEW ZEALAND (DOMINION OF NEW ZEALAND) WAS ESTABLISHED IN 1907, IT COVERS AN AREA OF 270,986 SQ KM, ITS POPULATION IS 3.7 MILLION, ITS CAPITAL CITY IS WELLINGTON, AND ITS OFFICIAL LANGUAGE IS ENGLISH.
JANUARY 2002: 4 737-33A'S (24030; 24460; 25119; 27267), EX-ANSETT (ANS), ANSETT (AWW) WET-LEASED.
September 2002: Changes its name from "Qantas New Zealand" to "Jet Connect."
October 2002: 1 737-377 (23486, VH-TAU), TRANSFERRED FROM QANTAS Airways (QAN) TO JET CONNECT (QNZ).
February 2003: 1 737-376 (23478, ZK-JNG) delivery.
April 2003: JetConnect (QNZ) is a Qantas Airways (QAN) subsidiary, set up to operate domestic, jet airplane routes in New Zealand.
Parent organization/shareholders: QANTAS (QAN) (100%).
July 2003: In September 2003, Auckland - Christchurch - Queenstown. In October 2003, Auckland - Queenstown.
737-376 (23488, ZK-JNH), (QAN) wet-leased delivery.
November 2003: 737-376 (23490, ZK-JNA), Qantas Airways (QAN) wet-leased delivery.
January 2004: In April 2004, Christchurch - Wellington; Christchurch - Queenstown - Rotorua.
February 2004: 737-376 (23491) transferred from Qantas Airways (QAN).
May 2004: 737-376 (24296, ZK-JNC) transferred from Qantas Airways (QAN).
October 2004: 737-376 (24295, ZK-JNN; 24297), transferred from Qantas Airways (QAN).
March 2005: 737-376 (24298, ZK-JNO), transferred from Qantas Airways (QAN).
December 2005: Qantas (QAN) scrapped domestic and trans-Tasman base commissions to travel agents in Australia and New Zealand and reduced payments on international sales from 7% to 5% in a move designed to lower distribution costs and improve profit margins. The decision reflects global trends, increasing direct ticket sales - - particularly through the Internet - - and the growth of online-based low-cost subsidiary Jetstar (IMU), according to (QAN). Base commissions on sales have been reduced steadily in recent years as the airline has refocused its business, with rates of only 1% on offer for domestic and Australia - New Zealand services.
April 2006: The on-again-off-again relationship between Air New Zealand (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 (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 trans-Tasman 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.
February 2009: The Qantas Group will restructure its New Zealand and China networks as it strives to remain profitable, and CEO, Alan Joyce denied speculation that the moves are a portent of things to come on its Australian operations. From June 10, Qantas (QAN) flights on New Zealand domestic routes will be taken over by its low-cost subsidiary Jetstar Airways (IMU). In addition, (QAN) will quit its Sydney - Beijing (on April 17) and Melbourne - Shanghai (March 31) flights, flagging the weakness in China's economy. The restructure comes two weeks after the Qantas Group reported a -65% plunge in its half-year profit to +A$216 million/+$140.5 million.
The New Zealand changes are seen by some as the start of a trend that will see (IMU) replace the mainline on an increasing number of routes. Centre for Asia Pacific Aviation (CAPA) CEO, Derek Sadubin said that, "Without a doubt, (IMU) will take over more (QAN) routes. We have already seen evidence of this recently with the Adelaide to Cairns route and you will also see (IMU) operating more regional short-haul international routes."
Joyce said that (IMU) will "grow aggressively but in harmony" with (QAN). He said the Australian and New Zealand operations are not comparable and denied any wholesale takeover of (QAN) Australian domestic trunk routes by (IMU). "Australia is very different and we are making money [on (QAN) routes] even in current times. Certainly there will be some more tweaks," he said.
The restructuring also includes the retirement of (QAN)'s eight 130-seat 737-300s/-400s, which will reduce capacity by an additional -1%, according to Joyce. (QAN) still will operate flights between Australia and New Zealand, occasionally in competition with (IMU), and will upgrade to new 737-800s with seat-back In-Flight Entertainment (IFE) throughout. (IMU)'s New Zealand network will comprise Auckland, Christchurch, Wellington, and Queenstown. Rotorua no longer will be served.
Late last year, (QAN) announced a series of cuts that effectively grounded 10 airplanes. "Instead of growing international routes by +5% we are contracting by -8%," Joyce said.
An (IMU) spokesperson said that with costs -40% below (QAN)'s, the subsidiary is in better shape to respond to market demands for lower fares in difficult economic times.
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."
March 2009: Jetconnect (QNZ) is an affiliate member of the Oneworld (ONW) alliance.
June 2009: Jetstar Airways (IMU) launched services in New Zealand, taking over parent Qantas (QAN)'s flights between Auckland, Christchurch, Wellington, and Queenstown. The (QAN) mainline under JetConnect (QNZ), which operated a small fleet of 737-400s in New Zealand, will withdraw from domestic service there.
August 2009: 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.
October 2009: 3 737-800s (ZK-VQA "Jean Batten" - - SEE PHOTO - - "QNZ-737-800-2009-10"), named after Kiwi aviatrix, also has a sign on the nose of the airplane indicating "75th Qantas 737" (including those delivered to Trans Australia Airlines).
December 2009: 737-376 (24296) exported as (N294AG) for part out and scrap at Tucson, Arizona, USA.
October 2010: Jetstar (IMU) will significantly increase its New Zealand (NZ) domestic services by adding 39 weekly flights between Auckland, Christchurch, Wellington, and Queenstown in February 2011.
(IMU) said it will add two A320s in New Zealand to facilitate the flights, which will expand its weekly services within (NZ) to 119, giving it a market share of around 20%.
Auckland – Christchurch flights will increase from 35 to 49 per week, while Auckland – Wellington services will increase from 21 to 35 per week. Service between Christchurch and Wellington will double to twice daily. Service from Queenstown - Auckland will increase from 6 to 10 weekly flights. The additional services equate to an additional 717,000 seats per annum.
Jetstar Group CEO, Bruce Buchanan said the “new services build upon Jetstar (IMU)’s growing competitive proposition on New Zealand’s high-traffic routes, providing a platform for future growth and new destinations.”
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.
3 737-838s (34185, ZK-ZQE; 34203, ZK-ZQD "William Pickering;" 34204, ZK-ZQF "Sir Edmund Hilary"), Qantas (QAN) leased deliveries.
August 2011: JetConnect (QNZ) as a Qantas (QAN) subsidiary provides jet airplane connections between Australia and New Zealand. New Zealand domestic services were operated until June 2009, when they were taken over by another Qantas (QAN) subsidiary, JetStar (IMU).
Employees = 550.
(IATA) Code: QF. (ICAO) Code: QNZ - (QANTAS JETCONNECT).
Parent organization/shareholders: Qantas (QAN) (100%).
Main Base: Auckland International Airport (AKL).
International, scheduled destinations: Brisbane; Melbourne; & Sydney.
September 2011: Qantas (QAN) won a significant battle over the Australian and International Pilots’ Association (AIPA) after industrial arbitrator Fair Work Australia (FWA) dismissed a pilots’ claim over pay. (AIPA) asked for (QAN)’s New Zealand-based subsidiary, Jetconnect (QNZ) to be subject to Australian industrial laws and agreements. Instead, the (FWA) ruled that (QAN) pilots (FC) employed by Jetconnect (QNZ) were subject to New Zealand industrial laws and agreements.
(QAN)’s wholly-owned subsidiary (QNZ) operates 737-800 services from New Zealand bases; it has 600 employees, including 100 pilots (FC), and has linked the two countries since 2003.
According to (QAN), most of its pilots (FC) are covered by a three-year collective agreement agreed May 2008 between (QNZ) and the New Zealand Airline Pilots Association.
(QAN) Head Corporate & Government Affairs, Olivia Wirth said it was a common sense decision. “New Zealanders living and working in New Zealand for a New Zealand company should be subject to New Zealand’s industrial laws and agreements and not to Australia’s industrial laws,” Wirth said. “The union should not be attempting to use Australia’s Fair Work Act to override the industrial relations legislation and industrial agreements in other countries. The decision by Fair Work Australia is a comprehensive dismissal of the pilots (FC)’ union’s claim that the establishment of (QNZ) was to avoid Australia’s industrial laws or disadvantage Qantas (QAN) pilots,” she said, noting that not one (QAN) short-haul pilot (FC) has been made redundant since (QNZ) was established.
(AIPA) has been in a long-running battle with (QAN) over pay related to lower-cost subsidiary airlines, including Jetstar (IMU), and the union fears that (QAN) management’s agenda is to expand other units at the expense of (QAN). (AIPA) President, Barry Jackson said (FWA)’s ruling was disappointing and concerning. “The whole (QNZ) operation has been nothing short of a deception. When passengers purchase a Qantas (QAN) ticket and then board a plane with a flying kangaroo on the tail, they are entitled to expect that their pilots (FC) and crew are fully fledged Qantas (QAN) employees,” Jackson said.
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0 737-33A (CFM56-3B2) (1831-24460, /90 ZK-CZR), EX-(ANS), (QAN) WET-LSD, RTND (AWW) 2004-07, LST (AZX). 8C, 108Y.
0 737-33A (CFM56-3B1) (1654-24030, /89 ZK-CZS; 2600-27267, /94 ZK-CZU), EX-(ANS), (AWW) LSD 2001-10. TRANSFERRED FROM (QAN) 2002-01. 24030 RTND 2004-08, LST (AZX). 27267 RTND 2004-10. 8C, 108Y.
0 737-33A (CFM56-3C1) (2069-25119, /91 ZK-JNE), EX-(ANS), (QAN) WET-LSD. RTND 2005-03. 8C, 108Y.
0 737-376 (CFM56-3C1) (1286-23486, /86 ZK-JNF; 1251-23478, /03 ZK-JNG; 1306-23487, /03 ZK-KNH; 23488, /03 ZK-JNH; 1390-23490, ZK-JNA, 2003-11; 1391-23491, ZK-JNB 2004-02; 1649-24295, ZK-JNN, 2004-10; 1653-24296, ZK-JNC 2004-05; 24297, 2004-10; 1761-24298, ZK-JNO, 2005-03), (QAN) WET-LSD. 24296; SCRAPPED AT TUCSON 2009-12. ALL 8 RTND. 8C, 108Y.
2 737-476 (CFM56-3C1) (2265-24439, /92 ZK-JTR, 2007-06; 2363-24441, /92 ZK-JTP, 2006-06; 2371-24442, /92 ZK-JTQ, 2006-06), IN QANTAS COLORS. 24439; RTND & ST SAMAIR (SMZ) 2011-09. 12C, 132Y.
6 737-838 (CFM56-7B26) (2989-34200, /09 ZK-VQA "JEAN BATTEN"/ 75TH 737 - - SEE PHOTO - - "QNZ-737-800-2009-10;" 3006-34201, /09 ZK-ZQB "SIR WILLIAM HUDSON" 2009-09; 3515-34203, /11 ZK-ZQD "SIR EDMUND HILLARY;" 3542-34185, /11 ZK-ZQE "WILLIAM PICKERING;" 3552-34204, /11 ZK-ZQF "ABEL TASMAN"), WITH WINGLETS. 12C, 156Y.
BRUCE BUCHANAN, JETSTAR (IMU) GROUP CHIEF EXECUTIVE OFFICER (CEO).
GEOFF DIXON, CHIEF EXECUTIVE OFFICER (CEO) (QNZ).
PETER GREGG, FINANCE DIRECTOR.
DAVID EDWARDS, GENERAL MANAGER OPERATIONS (email@example.com