Air New Zealand

Air New Zealand

File:AirNZ logo2006.svg
IATA ICAO Callsign NZ ANZ NEW ZEALAND
Founded	1940 (as Tasman Empire Airways Limited) 1965 (as Air New Zealand)
Hubs	Auckland Airport
Focus cities	Christchurch International Airport Hong Kong International Airport Los Angeles International Airport Wellington International Airport
Frequent-flyer program	Airpoints
Alliance	Star Alliance (1999)
Subsidiaries	Air Nelson Eagle Airways Mount Cook Airline
Fleet size	101 (+27 orders and 33 options) incl. subsidiaries
Destinations	53 incl. subsidiaries
Parent company	New Zealand Government (76.07% owner)
Headquarters	Western Reclamation, Auckland City, New Zealand
Key people	Rob Fyfe (CEO) Norm Thompson (Deputy CEO)
Revenue	NZ$4,046 million (2010)
Operating income	NZ$708m (2010)
Profit	NZ$82m (2010)
Total assets	NZ$4,597m (2010)
Total equity	NZ$1,566m (2010)
Website	www.airnewzealand.co.nz

Air New Zealand Limited (NZX: AIR, ASX: AIZ) is the national airline and flag carrier of New Zealand. Based in Auckland, New Zealand, the airline operates scheduled passenger flights to 27 domestic destinations and 26 international destinations in 14 countries across Asia, Europe, North America and Oceania, and is currently the only airline to circumnavigate the world. Air New Zealand is a member of the Star Alliance global airline alliance, having joined in 1999.

Air New Zealand's route network focuses on Australasia and the South Pacific, with long-haul services to Asia, Europe and North America. The airline's main hub is Auckland Airport, located near Mangere in the southern part of the Auckland urban area. Air New Zealand is headquartered in a building called "The Hub", located 20 km (12 mi) away from Auckland Airport, in the Western Reclamation, central Auckland City.

Air New Zealand originated in 1940 as Tasman Empire Airways Limited (TEAL), a flying boat company operating trans-Tasman flights between New Zealand and Australia. TEAL became wholly owned by the New Zealand government in 1965, whereupon it was renamed Air New Zealand. The airline was largely privatised in 1989, but returned to majority government ownership in 2001 after a failed tie up with Australian carrier Ansett Australia (when Ansett suffered financial issues and folded operations during that year). As of 2008, Air New Zealand carries 11.7 million passengers annually.

New Zealand's national airline operates a long-haul fleet consisting of Boeing 747, Boeing 767, Boeing 777 and Airbus A320 aircraft on international routes. The carrier also utilises a fleet of Airbus A320 and Boeing 737 airliners for short-haul operations. Air New Zealand's regional subsidiaries, Air Nelson, Eagle Airways, Mount Cook Airline, operate additional short-haul New Zealand domestic services. Air New Zealand was rated the eighth best airline in the world by Skytrax in 2009, and awarded Airline of the Year in 2010 by the Air Transport World Global Airline Awards.

History

Air New Zealand was an early DC-8 operator seen here at Wellington in 1980

Main article: History of Air New Zealand

Air New Zealand began as TEAL (Tasman Empire Airways Limited) in 1940, operating Short Empire flying boats on trans-Tasman routes. Following World War II, TEAL operated weekly flights from Auckland to Sydney, and added Wellington and Fiji to its routings. The New Zealand and Australian governments purchased 50% stakes in TEAL in 1953, and the airline ended flying boat operations in favor of propeller airliners by 1960. With the introduction of the DC-8 in 1965, TEAL became Air New Zealand—the New Zealand government having purchased Australia's 50% stake in the carrier.

With the increased range of the DC-8s, its first jet aircraft, Air New Zealand began transpacific services to the United States and Asia, and added Los Angeles and Honolulu as destinations in 1965. The airline further acquired wide-body DC-10 airliners, the first of which arrived in 1973.

Air New Zealand introduced its first 767s in 1985.

In 1978, the domestic airline National Airways Corporation (NAC) and its subsidiary Safe Air were merged into Air New Zealand to form a single national airline, further expanding the carrier's operations. In 1981, Air New Zealand added the first Boeing 747 aircraft to its fleet.

In 1982, Air New Zealand initiated service to London, United Kingdom. 1985 saw the introduction of Boeing 767-200ER airliners, and in 1989 the airline was privatised with a sale to a consortium headed by Brierley Investments Ltd. (with remaining stakes held by Qantas, Japan Airlines, American Airlines, and the New Zealand government). The New Zealand air transport market underwent deregulation in 1990, prompting Air New Zealand to acquire a 50% stake in Ansett Australia in 1995. From 1999 through 2000, Air New Zealand became embroiled in an ownership battle over Ansett with co-owner News Limited over a possible sale of the underperforming carrier to Singapore Airlines.

Merger with Ansett

Further information: [[:Air New Zealand-Ansett Australia merger]]

Air New Zealand added its first 747-400 in 1989.

In 2000, Air New Zealand announced that it had chosen instead to acquire the entirety of Ansett Australia (increasing its 50% stake in the carrier to 100%) for $A680 million from News Corporation Ltd. Many believe this to have been a critical mistake, as Ansett's fleet, staffing levels and infrastructure far outweighed that of Air NZ. Subsequently, both carriers' profitability came under question, and foreign offers to purchase the Air New Zealand Group were considered. In September 2001, plagued by costs it could not possibly afford, the Air New Zealand / Ansett Group neared collapse. A failed attempt at purchasing Virgin Blue was the final straw, and on September 12, out of both time and cash, Air New Zealand placed Ansett Australia into voluntary administration, following which Ansett was forced to cease operations. Air New Zealand announced a $NZ1.425 billion operating loss.

Re-nationalised era

In October 2001, Air New Zealand was re-nationalised under a New Zealand government NZ$885 million rescue plan (with the government taking a 76.5% stake), and subsequently received new leadership. This act was the only thing that spared Air New Zealand from also going into administration, without which it too would have joined its now bankrupt subsidiary, Ansett, and likely would have been grounded.

Air New Zealand 747-400 at LAX

In 2002, Air New Zealand reconfigured its domestic operations under a low-cost airline business plan, and the New Zealand government weighed (and later refused) a proposal from Qantas to purchase a one-fifth stake in the carrier. Air New Zealand returned to profitability in 2003, reporting a net profit of $NZ165.7 million for that year. The carrier saw increasing profits through 2004 and 2005. In 2004, the airline announced a comprehensive relaunch of its long-haul product, featuring the introduction of new seats in its business, premium economy, and economy class cabins. In 2005, Air New Zealand received the first of its newly-ordered Boeing 777-200ER wide-body aircraft, and the airline placed orders for the Boeing 787-9.

In 2009, the airline announced a massive drop in profits due to the global economic crisis and the high oil prices that affected the airline industry during 2008.

Alliance

On 21 December 2010, the New Zealand government approved an alliance between Air New Zealand and Australian budget airline Virgin Blue, which allows both airlines to expand operations between Australia and New Zealand. A week earlier the Australian Competition and Consumer Commission approved the deal.

Corporation affairs and identity

Head office

"The Hub," Air New Zealand head office 36.84492°S 174.75332°E / -36.84492; 174.75332

The Air New Zealand head office, "The Hub," is a 15,600 square metres (168,000 sq ft) office park located at the corner of Beaumont and Fanshawe Streets in Western Reclamation Precinct 2, Auckland City; it includes two connected six level buildings. The facility consists of a lot of glass to allow sunlight and therefore reduce electricity consumption. The building does not have cubicle walls. Lights automatically turn on at 7:30 A.M. and turn off at 6 P.M. Sensors throughout the building can turn on lights if they detect human activity, and turn off lights if human activity is not detected for 15 minutes. The building cost $60 million New Zealand dollars to build and develop. From late September to early October 2006 the airline moved 1,000 employees from four buildings in the Auckland CBD and some other buildings. The company previously had its head office in the Quay Tower in the CBD. "The Hub" is owned by Macquarie Goodman Property Trust. In 2006 the airline took an initial 11 year lease for 4.1 million dollars each year; the rent cost is subject to a yearly review to account for increases in property value.

Subsidiaries

File:Zeal1.JPG

Zeal320 logo.

Operations subsidiaries

The following are operations subsidiaries of Air New Zealand Limited:

• Air New Zealand Consulting
• Air New Zealand Holidays
• Air New Zealand Cargo

Air New Zealand has four wholly-owned subsidiary airlines:

Three are fully-integrated regional airlines – Air Nelson, Eagle Airways and Mount Cook Airline – which serve secondary destinations in New Zealand. Together they make up Air New Zealand Link.

Air Nelson Saab 340A (no longer operated) at Auckland Airport

• Air Nelson is based in Nelson, operating Bombardier Q300s. Flight numbers are in the NZ8000 series.

• Eagle Airways is based in Hamilton, operating Beechcraft 1900D aircraft. Flight numbers are in the NZ2000 series.

• Mount Cook Airline is based in Christchurch, operating ATR 72-500 turboprop aircraft. Flight numbers are in the NZ5000 series.

• Zeal320 was introduced to help combat increasing labour costs. Zeal320 operates Air New Zealand's trans-Tasman fleet of Airbus A320-200 aircraft under the Air New Zealand brand. On 31 July 2006, flights were re-numbered to the NZ700-999 series for Trans-Tasman services, and NZ1000 series for Domestic services. All of Air New Zealand's A320-200s were registered to Zeal320 until 26 November 2008, when ownership of the fleet was transferred back to Air New Zealand. However staff that work the A320-200 fleet are still employed by this subsidiary. This has been a bone of contention within the airline group in which these employees are paid at a lower scale than their mainline counterparts. Continued industrial action by staff employed in this subsidiary during 2009 have delayed a proposed LCC airline as a successor to Freedom Air that would have also employed the Airbus A320 on domestic routes to counter the likes of Jetstar Airways and Pacific Blue now operating in New Zealand.

Air New Zealand also uses air charter operators Air National and Vincent Aviation, complementing Eagle Airways on selected provincial routes using British Aerospace Jetstream 32, and Beechcraft 1900C aircraft respectively.

Technical subsidiaries

The following are technical operations subsidiaries of Air New Zealand:

• Air New Zealand Engineering Services
• TAE
• Safe Air New Zealand
• Safe Air Australia
• Christchurch Engine Centre (50%)
• Altitude Aerospace Interiors

Safe Air Australia is a subsidiary of Safe Air New Zealand.

Awards

• Airline of the Year - 2010 Air Transport World Global Airline Awards
• Best Cabin Staff Australia/NZ Region - 2009 World Airline Awards, Skytrax
• Best Passenger Service Award - 2008 Air Transport World magazine awards
• Best Airline to the South Pacific, Australia, and New Zealand in December 2007 by Business Traveler Magazine in the United States
• Australasia's Leading Business Class Airline at the 14th Annual World Travel Awards 2007
• Best Pacific Airline - 1998, 1999, 2000, 2001, 2002, 2004 TTG Annual Travel Awards
• Best Airline to the Pacific - 1994, 1995, 1996, 1999, 2000, 2001Travel Weekly Globe Awards
• Best Business Class Carrier, Best Check-in Staff, 1998 Executive Travel magazine awards

Sponsorships

Air New Zealand was the title sponsor of the Air New Zealand Cup domestic rugby club competition through the 2009 season. The airline remains a major sponsor of New Zealand rugby, but chose to concentrate its sponsorship in that area on the country's national team, the All Blacks. The airline also sponsors the Air New Zealand Wine Awards and the Air New Zealand Fashion Export Award.

Other major sponsorship by Air New Zealand:

• Air New Zealand Fashion Week
• Montana World of WearableArt (WOW) Awards Show

Brand and livery

Brand

Air New Zealand's "Pacific Wave", introduced in 1996

On 27 March 2006, Air New Zealand embarked on a changeover to a new brand identity, involving a new Zambesi-designed uniform, new logo, new colour scheme and new look check-in counters and lounges. The new uniforms feature a colour palette mirroring the greenstone, teal, schist and slate hues of New Zealand, sea and sky (a Māori motif created by Derek Lardelli) fabric woven from merino wool, and curves inspired by the koru. A greenstone colour replaces the blue Pacific Wave colour, inspired by the colour of the pounamu, the prized gemstone found in New Zealand. The Air New Zealand Koru was woven through all Air New Zealand's signage and products.

Later in 2009 staff were involved in testing fabrics and cuts of uniforms. "'It would be fair to say that the lessons from the development and introduction of the current uniform have been taken on board," said Mr. Fyfe after widespread public and staff criticism.

Livery history

Air New Zealand's Koru tail symbol, seen on Boeing 737-3K2 aircraft ZK-NGM

The Air New Zealand Māori symbol is a koru. It is a stylised representation of a fern frond unfolding, and signifies new life, growth and renewal. The koru was used on the prows of the early Polynesian canoes that sailed the Pacific with its many islands.

The koru was first applied to the tail of Air New Zealand aircraft with the arrival of the DC-10 in 1973, and has remained ever since. The current aircraft livery was adopted in 1996. The koru also appears on the Air New Zealand house flag and flies at international airports such as Los Angeles Airport.

A redesigned logo was unveiled on 21 March 2006. The new logo has been introduced in all advertising, signage and stationery and on planes. The "Pacific Wave" fuselage stripes were removed from short-haul aircraft in 2009, simplifying the overall livery.

Special liveries

Air New Zealand 747-400 "Airline to Middle Earth".

• In 1973, the first McDonnell Douglas DC-10-30s arrived with Christchurch 'NZZN' 1974 Commonwealth Games symbols on both sides of the forward fuselage beneath the cabin windows.

• In 1984, pictures of the Buckingham Palace horse guards with 'London, Here We Come' were placed on the side of the hump of the airline's new Boeing 747-200Bs when Air New Zealand was allowed to fly the Los Angeles - London leg of the trans Pacific route in its own name. Prior to this, British Airways had operated Air New Zealand's aircraft over the US in order to work around a "no pick up and continue" regulation. British Airways was exempt from this regulation.

• A special livery on 747-400 ZK-NBW featuring an image of the All Blacks front row of Carl Hoeft, Anton Oliver and Kees Meeuws was used on the aircraft that took them to the 1999 Rugby World Cup. ZK-NBW also had a black tail. Two other aircraft were painted in the special All Blacks scheme 737-200QC ZK-NQC and Saab 340 ZK-NSK, both these aircraft retained their blue teal tail colours.

• In 1999, one Boeing 737-300 ZK-NGA was painted in a 'New Millennium' livery depicting celebrations and the America's Cup regatta that was to be held in 2000.

• In 2002 and 2003 Air New Zealand marked its position as "the official airline to Middle Earth" by decorating three planes with The Lord of the Rings imagery, applied as giant decals. The decal material was described in airline publicity as being as thin as clingfilm and weighing more than 60 kg. The imagery featured actors from the film trilogy The Lord of the Rings against backdrops of New Zealand locations used in the films.

• 2003-2004 saw Freedom Air paint Boeing 737-300 ZK-FRE, Airbus A320-200 ZK-OJL and ZK-OJO in a mural promoting Warner Brothers Movie World on the Gold Coast. All the major Looney Tunes characters were depicted.

• In 2008, ZK-FRE was painted into a lime green Air New Zealand 'Holidays' livery. As of July 2009, the aircraft was removed from Air New Zealand service and sold to WebJet Linhas Aéreas.

• Airbus A320 ZK-OAB will appear in an All Blacks livery when it commences service with Air New Zealand in February 2011. The plane will be completely black, with a silver fern motif covering the aft section of the fuselage.

Destinations

Further information: [[:Air New Zealand destinations]]

Air New Zealand flies to 27 domestic destinations and 26 international destinations in 14 countries across Asia, Europe, North America and Oceania.

Apart from flying from hub city Auckland, Air New Zealand also flies the Los Angeles - Heathrow and Hong Kong - Heathrow routes. In December 2009, Air New Zealand announced a new Sydney - Rarotonga service to attract more Australians looking for another South Pacific Island holiday experience in the Cook Islands. Air New Zealand will be the only airline to operate direct services between the two nations. Previously, passengers from Australia must transit in Auckland before connecting onto another flight to Rarotonga. Currently, Air New Zealand already operates out of Rarotonga to Auckland and Los Angeles.

Codeshare agreements

As of 29 October 2009, Air New Zealand has codeshare agreements with Star Alliance airlines and the following airlines:

Aircalin (New Caledonia) Air India (Star Alliance-future) Air Pacific Air Rarotonga

Air Tahiti Nui Air Vanuatu Japan Airlines (Oneworld) Virgin Atlantic Airways

In December 2010, the Australia and New Zealand governments approved a limited 'trans-Tasman' alliance between Air New Zealand and Virgin Blue which would permit code-sharing of selected flights between these countries and connecting domestic flights as well as offer reciprocal access to lounges and the airlines' frequent flyer programs, to take effect as of 2011.

Fleet

Air New Zealand's main fleet consists of Boeing jet aircraft for long-haul flights, and Boeing and Airbus aircraft for domestic and short-haul international flights. Air New Zealand's subsidiaries operate various makes of turboprop aircraft.

The majority of the airline's main fleet is made up of short-haul jet aircraft in the form of Boeing 737-300s and Airbus A320-200s. The fifteen 737-300s are used on domestic routes between the major airports (Auckland, Wellington, Christchurch, Dunedin, Queenstown), and also fly on routes to Niue in the Pacific. The fleet also includes the last 737-300 built, ZK-NGJ, which was delivered to Air New Zealand in December 1999. The twelve A320-200s are used on short-haul international routes to Australia and the Pacific Islands, and are used on all international services to and from New Zealand airports other than Auckland and Christchurch.

The international long-haul fleet consists of Boeing 767-300ER, Boeing 777-200ER, Boeing 777-300ER and Boeing 747-400 jet aircraft. The five Boeing 767 aircraft operate routes to many outer Pacific Islands, Honolulu and Los Angeles, Osaka, and some flights to Australia including all those to Perth. They all have recently been retrofitted with winglets to increase fuel economy. The eight 777-200ER aircraft operate on the majority of the long-haul routes, including Asia, North America, London via Hong Kong, and some Pacific Islands. The six 747-400 operate on larger long-haul routes, to London via Los Angeles,Vancouver and Brisbane.

The first of five new 777-300ERs will operate on selected flights from mid-January 2011 between Auckland, Melbourne and Brisbane, and then Auckland to Los Angeles and possibly London, before entering a regular commercial service (and replacing AirNZ's existing 747-400) from 2 April 2011 on the Auckland - Los Angeles - London Heathrow route.

For regional domestic services, three makes of turboprop aircraft are used, each make belonging to a single subsidiary. Mount Cook Airline operates eleven ATR 72-500 aircraft between major centres, such as Hamilton, Palmerston North, Rotorua, Tauranga, Napier, and Invercargill. The 23 Air Nelson-operated Bombardier Q300 operate mainly on major routes alongside Mount Cook Airline, including to some smaller centres. Eagle Airways' eighteen Beechcraft 1900D operate on minor routes between smaller urban areas.

The Boeing customer codes for Air New Zealand is 7x7-x19, which was sequestered from the National Airways Corporation on its merger with Air New Zealand in 1978 (Air New Zealand itself didn't own any Boeing aircraft before 1978). All Boeing aircraft built for Air New Zealand are designated with the customer code, so a Boeing 777-200ER built for Air New Zealand is designated a 777-219ER.

Current fleet

Main fleet

Aircraft	In fleet	Orders/Options	Passengers (Business/Premium Economy/SkyCouch[d]/Economy)	Notes
Airbus A320-200	12 0[b]	14/11	165[a] (0/0/0/165) 171[b] (0/0/0/171)	ZK-OJH painted in Star Alliance livery Entry into service: 2011 - 2016
Boeing 737-300	15	—	133 (0/0/0/133)	To be retired 2011-2016 Replacement: Airbus A320-200
Boeing 747-400	6	—	379 (46/39/0/294)	Older aircraft to be replaced 2011-2012 by Boeing 777-300ER
Boeing 767-300ER	5	—	221[c] (24/0/0/197) 230 (24/0/0/206)
Boeing 777-200ER	8	0/2 (used)	304 (26/36/0/242)	To be re-fitted with new long-haul cabin from mid-2011
Boeing 777-300ER	1	4/2	338 (44/50/60[d]/184)	Entry into service: 2011-2012
Boeing 787-9	—	8/8	TBA	Launch customer for 787-9 model Entry into service: TBA
Total	49	26

Notes:

• ^a International model - There are 171 seats installed on the aircraft, but seats 02B, 03B, 12B, 12E, 13B, and 13E are reserved Works Deluxe empty seats.
• ^b Domestic model - introduction from February 2011 onwards.
• ^c The interiors of the 767-300s are identical with 230 seats. The nine seats 07E through 15E are reserved Works Deluxe empty seats for Tasman and Pacific Flights.
• ^d SkyCouches consists of three economy seats that come together to form one couch. There are 60 economy seats on the 777-300 coming together to form 20 couches.

Subsidiaries fleet

Aircraft	Total	Orders	Options	Passengers (all economy)	Notes
ATR 72-500	11	—	—	68	Operated by Mount Cook Airlines
Beechcraft 1900D	18	—	—	19	Operated by Eagle Airways
Bombardier Q300	23	—	—	50	Operated by Air Nelson
Total	52	0	0

Future fleet plans

Air New Zealand announced on 3 November 2009 that it would replace its aging Boeing 737-300 fleet with fourteen new Airbus A320-200 aircraft, with options on eleven more A320s and/or larger A321s. The new aircraft, seating 171 passengers and powered by IAE V2500 engines, will take over the domestic routes operated by the 737-300 and are expected to be introduced from February 2011. Air New Zealand chose the A320 over the rival Boeing 737-800 on grounds of better fuel economy, lower pricing in purchasing, and lower running costs (due to the commonality with the airline's existing A320 short-haul international fleet). Air New Zealand will also be the launch airline for the new "sharklet" winglets that are due to be added to the Airbus A320 family in 2012, decreasing fuel burn by 3.5 percent and cutting carbon emissions.

The airline has ordered five Boeing 777-300ER aircraft to replace its older Boeing 747-400s, with options on two more. The first aircraft, ZK-OKM, completed its maiden flight on 8 November 2010, and was handed over to Air New Zealand at Boeing's Everett, Washington plant on 22 December 2010. This commenced limited services between Auckland, Melbourne and Brisbane in mid-January 2011,, followed by Auckland to Los Angeles and London, to showcase Air New Zealand's new economy, premium economy and business class seating. The remaining four aircraft are expected to be delivered 2011-2012.

Dreamliner fustrations

Air New Zealand, in 2004, ordered eight Boeing 787-9s as the launch customer for the 787-9 model, with options on eight more. These were to be delivered beginning in late 2010. Boeing has suffered long development delays due to the many pioneering construction and fabrication techniques. The first aircraft are now expected to be delivered in late 2013, replacing the Boeing 767-300ER aircraft. As launch customer for the 787-9, Air New Zealand is seeking compensation for these delays. Boeing has since given the airline discounts on the 777-300ER models it is now placing into service. Boeing has also given generous lease terms on four 777-200ER types that the airline has had to retain because of the Dreamliner delays. Air New Zealand is still standing by the 787-9 as launch customer and it has also been approached as the 787-10 launch customer to take on the Airbus A350, a type that Airbus has wooed Air New Zealand with back to buying that company's products.

To ease the stress of the current well used 777-200ER fleet and to add more services, plans of acquiring two 777-200ER's from Singapore Airlines are being studied.

Historic fleet

In the past, Air New Zealand and its subsidiaries have flown the following aircraft. It does not include aircraft solely operated by TEAL and NAC. The following timeline shows the type operated, year, and fleet size (number of aircraft).

1960s

1970s

1980s

1990s

2000s

2010s

Fokker F27 Friendship 1978 - 1990 (24; 17 ex-NAC)

Boeing 737-200 1978 - 2001 (24; 8 ex-NAC)

Lockheed L-188 Electra 1965 - 1972 (5 ex-TEAL)

Boeing 737-300 1998–present (20)

Airbus A320-200 2003–present (15)

Douglas DC-8-52 1965 - 1981 (7)

Boeing 767-200ER 1985 - 2005 (9)

Boeing 767-300ER 1991–present (11)

McDonnell Douglas DC-10-30 1973 - 1982 (8)

Boeing 777-200ER 2005–present (8)

Boeing 747-200 1981 - 2000 (6)

B777-300ER 2010 - (1)

Boeing 747-400 1990–present (8)

Douglas DC-8-54F 1982 - 1989 (1)

Aircraft model	Total aircraft	First delivery	Last flight	Disposition	Notes
Hawker Siddeley HS 748	1				Chartered from Mount Cook Airline, CHC - IVC route 1991-94,
Boeing 757-200	1				Leased from Britannia during the 1994 737-200 groundings,
BAe 146-200	1				inherited from the collapse of Ansett New Zealand
BAe 146-300	7				inherited from the collapse of AnsettNZ/QantasNZ
Saab 340	17
Fairchild Metroliner	14
Embraer Bandeirante	16
ATR ATR 72-212	8

`

Cabin

Long-haul International

Boeing 777-200ER cabin with mood lighting.

Business Premier flatbed seat.

On 28 June 2004, Air New Zealand released details of the upgrade to their long-haul product, which was aimed to turn around the profitability of its international services. Every seat on their Airbus A320-200, Boeing 767-300ER, Boeing 777-200ER and Boeing 747-400 aircraft is equipped with a personal LCD screen with audio video on demand. First class was removed, with an upgraded business class and a new premium economy section installed.

In January 2010, Air New Zealand released details of their new "Kupe" long-haul product for their new 777-300 aircraft for delivery later that year, as well as on their future 787-9 aircraft and their existing 777-200 aircraft. Changes included an improved Business Premier and Economy class product, a new Premium Economy cabin, and the introduction of the Economy SkyCouch.

Business Premier

Business Premier is the highest available class on Air New Zealand flights, available on both of the 777s and the 747. The seating is configured in a herringbone layout in a 1-2-1 configuration (1-1 on the upper deck of the 747), allowing direct access for every passenger to an aisle. Each seat is 22 inches (560 mm) wide leather and comes with an ottoman footrest that doubles as a visitor seat. The seat converts to a full length (79.5 in (2,020 mm)) lie-flat bed, for which a pillow, duvet and sheet are provided.

Each seat comes with a large tray table, multiple stowage bins, a cocktail tray, a bottle holder, in-seat power, three reading lights, and an AVOD system with a 10.4-inch monitor. On the 777-300, each seat also has USB and iPod connectivity, and a larger 12.1-inch touchscreen monitor.

Business

The 767 is equipped with standard recliner business class seats due to its inability to take the Business Premier seat. Seating is in a 2-2-2 configuration, with a 15-inch recline. Each seat is fitted with a standard legrest and footrest, USB, iPod and power connectivity, and a 10.6-inch touchscreen AVOD system.

Pacific Premium Economy

Pacific Premium Economy is in a dedicated cabin, which shares lavatories with the Business Premier cabin, available only on the Boeing 747-400 and Boeing 777-200ER. The class has the same mood lighting, dining and wine selection and in-seat power as the Business Premier cabin. On the 747-400 the seats are wider than Pacific Class, while on the 777-200 the seat width is the same as in Economy but with greater pitch; all seats have more legroom than standard Economy. Following positive reviews and high demand after its introduction, Air New Zealand re-launched its Pacific Premium cabin with added business class services, including priority check-in, priority baggage handling and the same baggage allowance as Business Premier (priority baggage handling and extra baggage allowance do not apply for passengers with connecting flights to other airlines). Seat pitch is approximately 39 in (990 mm).

Premium Economy Spaceseat

Air New Zealand's new Premium Economy Spaceseat will initially be available only on the 777-300ER, although the airline's eight exiting 777-200s will undergo a refit for the new cabins from mid-2011. The airline predicts that “all Asian, North American and UK services will have the new product by around 2012".

Designed by Air New Zealand in consultation with US design studio IDEO, the new Premium Economy cabin uses a 2-2-2 seating configuration. The central pair of Spaceseats are slightly angled for those travelling with a colleague or partner, and the two 'cocktail tables' can form a single table for shared in-flight dining. The pairs of outboard Spaceseats on either side are angled to enhance privacy for solo flyers. The seats are built around a hard shell so the passenger in front can’t recline into the space of the person sitting behind. Instead, the seat slides forward and angles up as it reclines into the shell, similar to an armchair.

Air New Zealand holds the patent for the Spaceseat design and expects to licence the seat to other airlines once its initial 18 month exclusivity period expires in the second half of 2012. Air New Zealand CEO Rob Fyfe says that formal negotiations are underway with carriers from Asia, North America and Europe, and "Boeing has indicated they’re interested in the (Spaceseats) as a business class option for their 737 range.”

Pacific Economy

Pacific Economy is available on all aircraft, in a 2-3-2 configuration on the 767, a 3-3-3 configuration on the 777-200, and a 3-4-3 configuration on the 747 and 777-300. The seats have a pitch of 31 to 34 inches (790 to 860 mm), have a 6-inch recline, and have a flexible edge seat base to provide more leg support when reclined. Each seat has its own AVOD entertainment system, with a 8.4-inch screen on the 777-200 and 747, a 9-inch screen on the 767, and a 10.6-inch touchscreen on the 777-300.

On the 777-300, economy seats also have USB, iPod and power connections, a cup-holder and trinket tray, and a headrest designed to allow a special sleep pillow to attach to it, preventing it from slipping downwards during sleep.

Economy SkyCouch

The Economy SkyCouch is presently only available on the 777-300. It is a set of three Economy class seats on the outside of the cabin that have armrests that retract into the seat back, and full leg rests that individually and electronically come out 90 degrees to form a flat surface extending to the back of the seats in front. It is largely designed for families for use as a flat play surface, and for couples, who on purchasing the middle seat for 25% more each, can use it as a flat sleeping surface. Each SkyCouch seat is equipped with the same basic facilities as a standard 777-300 Pacific Economy seat, including a 10.6-inch touchscreen AVOD system.

The SkyCouch has earned the nickname "cuddle class" by media reporting on the new innovative seating, from the ability for couples to lie flat and "cuddle" together on the 30 in × 55 in (76 cm × 140 cm) flat surface. Concerns were raised almost immediately over if the couch could potentially be a new place to join the mile high club. Air New Zealand responded that public displays of affection of that level would not be tolerated in its aircraft. The airline even went to release a billboard advertisement entitled "The Economy SkyCouch activity guide", suggesting "spoons" were allowed, but "forks" were not.

The SkyCouch seating is yet to be fully certified for use in flight by either the New Zealand Civil Aviation Authority or the American Federal Aviation Administration. Certification is expected by both authorities is expected in March 2011, before the Auckland-Los Angeles-London 777-300 service commences in April. In the meantime, the SkyCouches will act as regular economy class seating.

In-flight entertainment and magazine

Air New Zealand offers audio video on demand (AVOD) in all classes on international services on its 747-400, 777-200ER, 767-300ER, and A320-200 aircraft. The first AVOD system was introduced on all its 747's and 777's manufactured by Rockwell Collins, and the rest was manufactured by Panasonic Avionics Corporation enhanced with a touch-screen functionality.

The AVOD system, branded KiaOra, features multiple channels of video, audio, music, and games. Passengers can start and stop programs, plus rewind and fast-forward as desired. Recently, Air New Zealand has introduced a gate-to-gate in-flight entertainment experience. Passengers can start up their entertainment as soon as they board the plane, right until they arrive at the gate of their destination, maximizing play time, which is especially useful for its short-haul Tasman and Pacific Island flights. Gate-to-gate IFE is not available on certain seats in economy (such as the bulkhead and emergency exit row seats), and on all Business Class seats on its 767's as they use fold-out PTV.

AVOD screen size differs every class:

• Business Premier: 10.4 in (260 mm)
• Pacific Premium Economy: 8.4 in (210 mm)
• Pacific Economy: 8.4 in (210 mm)

KiaOra, the airline's in-flight magazine, was removed from international flights from March 2009. It is now only on-board on all the domestic services. As a guide on international services, there is now a brief publication named Entertainment Magazine detailing the entertainment available on the flight.

Inflight Concierge

Air New Zealand have in-flight concierge staff on selected long-haul international flights, whose function is to advise passengers personally on travel advice, onward bookings, and other services relating to their travel itinerary. The service is available on routes between Auckland and Vancouver, San Francisco and Los Angeles as well as from Los Angeles to London Heathrow and is available to all passengers on board.

Tasman and Pacific

In 2010, Air New Zealand replaced its cabin and service on short-haul international routes to Australia ("Tasman") and the Pacific Island ("Pacific") with a new "Seats to Suit" service. Initially introduced on the Christchurch-Sydney route from 18 August 2010, the new service starts on all routes on 17 November 2010. All international Airbus A320 aircraft are being refitted with an all-economy cabin that supports four options of service. On A320 aircraft still to be refitted, and on 767/777/747 aircraft, business class is also available.

There are four options, building on each other:

• Seat - the basic option, consisting of a seat, one cabin bag up to 7 kg, complimentary tea coffee and water, and AVOD entertainment including TV shows, music and games.
• Seat + Bag - the Seat option, plus one checked bag up to 23 kg.
• Works - the Seat + Bag option, plus movies included on AVOD entertainment, an in-flight meal,complimentary non-alcoholic and alcoholic drinks, and the ability to request a specific seat. Children on The Works option in addition receive a complimentary kids activity pack. This option is identical to the previous Economy option.
• Works Deluxe - the Works option, plus priority check-in and baggage, and extra checked bag up to 23 kg, lounge access (where available), and a guaranteed empty middle seat beside them.

The AVOD system consists of a 8.4-inch screen. In addition, the AVOD screens allow ordering of drinks and snacks to be delivered to their seat by the cabin crew. Works and Works Deluxe passengers get complimentary drinks after their meal, while drinks for Seat and Seat+Bag passengers, and snacks for all passengers are available for purchase using a credit card or a voucher purchased at the airport prior to boarding.

Airpoints Gold and Gold Elite are entitled to an additional carry-on bag up to 7 kg on all options. Airpoints Gold, Gold Elite and Koru members are entitled to an additional checked bag up to 23 kg on all options except Seat.

Domestic

Air New Zealand domestic services are operated in a single class all-economy configuration. Seating forward of the over-wing emergency exits on 737 and A320 aircraft are Space+ seats, with a larger pitch between seats, but otherwise are effectively economy seats.

Domestic flights operate on two fare schedules - Saver and Flexi. Saver is non-refundable and allows one checked bag up to 23 kg. Flexi is fully refundable and allows two checked bags up to 23 kg each. Flexi passengers, along with Airpoints and Koru members, get priority over the Space+ seating.

With the exception of Eagle Airways Beech 1900D flights, which do not have a flight attendant, all domestic passengers are offered tea, coffee or water. Passengers on turboprop aircraft are also offered a biscuit, while those on 737 and A320 flights are offered a choice of snacks, including vege crisps, muesli bars, and biscuits. Hard lollies are handed out to passengers on the descent. On flights before 9am on 737 and A320 aircraft, muesli and muffins are offered, as well as morning newspapers (The New Zealand Herald, The Dominion Post, The Press or Otago Daily Times, depending on the aircraft's origin), and on flights between 4:30pm and 7:00pm, beer and wine are offered to passengers (provided they are 18 years or over), as well as L&P, cheese, crackers and grapes, and bagel crisps and hummus.

Services

Koru Lounge & Koru Club

Main article: Koru Lounge

Air New Zealand Koru Club in Wellington.

The Koru Lounge is the name for Air New Zealand's network of airline lounges in New Zealand and Internationally. To access the lounge you are required to be a member of Air New Zealand Koru Club. Along with access to the lounges Koru Club members get travel perks such as Valet Parking, Priority Wait listing, exclusive check-in, extra checked in baggage, and preferred seating. The Koru Lounges across the globe are progressively undergoing a massive refurbishment programme.

Check-in kiosks

Air New Zealand self check-in kiosks, Wellington

This was launched in October 2008 at Auckland Domestic terminal. Users use a bar code issued on line or via mobile or PDA to scan for checking in. Most business day travellers can go straight through to their departure gate if not checking in bags. Wellington and Christchurch were equipped in late November 2008 while the larger provincial cities were retrofitted with a smaller system. Smaller destinations received an ATM sized machine (for the Beech 1900D network).

The proportion of Air New Zealand’s passengers using self-service check-in is increasing. Following the launch of its domestic product, the airline reached its 80% self-service target three days after going live. That has continued to grow to the stage that the number of full-service customers travelling within its domestic network has reduced to a trickle. These self-service kiosks are now also available for travel out of the Auckland International terminal on Trans-Tasman services only, allowing passengers to self check-in with baggage.

Check-in kiosks are manufactured by IER (www.ier.aero)

Airpoints

Airpoints is Air New Zealand's Frequent Flyer programme. Members earn Airpoints Dollars, which they can redeem at face value on any fare on every Air New Zealand ticketed and operated flight. Members are assigned a tier status, with increasing privileges ranging from Jade, Silver to Gold, then Gold Elite by accumulating their Status Points which is earned separately from the Airpoints Dollars. Becoming an Airpoints Gold and Airpoints Gold Elite would have the same recognition as a Star Alliance Gold status and benefits across the Star Alliance network. The same goes with the Airpoints Silver and Star Alliance Silver, only with less benefits. There is a joining fee of NZD 50 to be paid if the enrolling member has never joined. Otherwise, if one has already flown Business Class by Air New Zealand and can prove that, he or she can join Airpoints free of charge.

Status Points

Air New Zealand's Airpoints members now will receive Status Points for almost every Air New Zealand flight, as well as many other flights with its Star Alliance partners. Status Points enable Airpoints members reach a higher tier status faster. Status Points will still be granted even on discount fares (such as Smart Saver and grabaseat fares) that normally do not earn Airpoints Dollars.

Incidents and accidents

Main articles: Air New Zealand Flight 901, Eagle Airways Flight 2279, and XL Airways Germany A320 Flight 888T

As of June 2010, Air New Zealand and its subsidiaries have been involved in over ten incidents and accidents, including 5 hull loss accidents.

• On 4 July 1966, an Air New Zealand Douglas DC-8 on a training flight crashed on the runway shortly after taking off, killing two of the five crew (no passengers were on board).

• On 17 February 1979, an Air New Zealand Fokker Friendship crashed into Manukau Harbour while on final approach. One of the crew and one company staff member were killed.

• On 28 November 1979, Air New Zealand Flight 901, a McDonnell Douglas DC-10-30-operated sightseeing flight over Antarctica, collided with Mount Erebus on Ross Island, killing all 257 people on board. An unannounced change in flight path coordinates by the airline's navigational division the morning of the accident, combined with unique Antarctic weather and conditions, resulted in the aircraft crashing into Mount Erebus when the flight crew thought they were flying down McMurdo Sound. The crash and subsequent inquiry resulted in major changes in Air New Zealand's management.

• On 19 May 1987, during the first of Fiji's coups d'état that year, Air New Zealand Flight 24, a Boeing 747-200-operated flight from Tokyo Narita to Auckland via Nadi, was hijacked at Nadi International Airport. Staff members of the local ground handling crew stormed the plane, and held three flight crew hostage for six hours before the incident was resolved. Air New Zealand subsequently suspended all of its services to/through Nadi for seven months.

• On 29 March 1995, NZ2337 from Hamilton to New Plymouth operated by a Kiwi West Aviation Beech Queen Air B80 Excalibur for Air New Zealand crashed 13 minutes after take-off killing all six on board. The plane stalled and spun after both engines failed due to fuel starvation.

• On 30 August 2002, Air New Zealand Flight 2, a Boeing 747-400-operated flight from Auckland to London Heathrow via Los Angeles, lost a two-metre section of its right inboard trailing-edge flap just after take-off. Dismissing the bumps as wake turbulence, the crew only realised the missing flap 12 hours later on the approach to Los Angeles. The aircraft landed safely with no injuries. The separation was caused by a fatigue fracture of one of the links attaching the flap to the wing.

• December 2002, An Air New Zealand Boeing 767 took off from Brisbane bound for Auckland when one engine experienced an uncontained failure, forcing an emergency landing at Brisbane airport.

• On 18 June 2007, Air New Zealand/Eagle Airways Flight 2300, a Beechcraft 1900D-operated flight from Timaru to Wellington, was diverted to Woodbourne Aerodrome near Blenheim after the landing gear failed to deploy on the approach to Wellington. The aircraft landed on its belly, causing extensive but repairable damage to the aircraft. None of the 17 people on board were injured. The cause was the hydraulic system being drained via a fatigue crack in the hydraulic actuator for the right main landing gear, resulting in the gear being stuck in the retracted position.

• On 8 February 2008, a woman attempted to hijack Air New Zealand Flight 2279 from Blenheim to Christchurch. Though this was actually an Air National J32 on charter to replace the normal Eagle aircraft.The woman threatened Air New Zealand staff, stating she had a bomb on board. Both pilots and one passenger suffered stab injuries. The aircraft landed safely and the woman was arrested. There were no injuries to the other passengers on board.

• On 27 November 2008, (28 November New Zealand time) a leased Air New Zealand-owned Airbus A320-200 (ZK-OJL) registered D-AXLA, on a post-maintenance flight (flight GL888T) crashed into the Mediterranean Sea seven kilometers east of the French city of Perpignan, near the border with Spain. The seven people on board were killed, including four Air New Zealand representatives. The aircraft was on lease to XL Airways Germany, a European-based airline. ZK-OJL was unique in that when sequestered to Freedom Air, was painted in a remarkable Warner Brothers cartoon character colour scheme.

• On 30 September 2010, an Air New Zealand Bombardier Q300 Dash 8 aircraft operated by Air New Zealand subsidiary Air Nelson suffered a nose wheel failure upon landing at Blenheim Airport in the South Island of New Zealand. Flight NZ8441 with 46 passengers and 3 crew members scheduled to fly from Wellington to Nelson, diverted to Blenheim airport after circling at Nelson in bad weather. Upon landing, the nose wheel collapsed and the aircraft came to a halt on the runway resting on the forward section the aircraft's hull. No passengers or crew were injured during the landing and the airplane was largely undamaged.

Controversial topics

Outsourcing maintenance

On 19 October 2005, Air New Zealand proposed outsourcing most of its heavy maintenance on its long-haul aircraft and engines, which would result in about 600 job losses, mostly in Auckland. Air New Zealand said that there are larger maintenance providers who can provide maintenance work cheaply due to their large scale. The proposal was estimated to save $100 million over five years and came after many attempts to attract contracts to service other airlines' longhaul aircraft.

Eventually, a union proposal to save some of the remaining jobs was accepted. The proposal included shift and pay changes (most of them pay-cuts) which would allow about 300 engineers in Auckland to keep their jobs. 200 were made redundant or resigned.

Minor seating policy

Main article: Airline sex discrimination policy

In November 2005, it was revealed that Air New Zealand (along with Qantas & British Airways) has a policy of not seating adult male passengers next to unaccompanied children. The policy came to light following an incident in 2004 when Mark Wolsay, who was seated next to a young boy on a Qantas flight in New Zealand, was asked to change seats with a female passenger. A steward informed him that "it was the airline's policy that only women were allowed to sit next to unaccompanied children". Air New Zealand later said it had a similar policy to Qantas, attracting widespread criticism

Qantas code-share

On 12 April 2006, Air New Zealand and Qantas announced that they had signed a code-share agreement for their trans-Tasman routes and would file for authorisation from the New Zealand Ministry of Transport and the Australian Competition and Consumer Commission. The airlines maintained that they were making losses on Tasman routes due to too many empty seats, and that a codeshare would return the routes to profitability. Critics, particularly Wellington International Airport and Melbourne Airport, argued that the codeshare would lead to reduced passenger choice and higher airfares, and that the airlines were exploiting an effective duopoly on the Tasman routes.

On 15 November 2006 Air New Zealand announced it was withdrawing its application after a draft decision by the Australian Competition and Consumer Commission to not approve the code-sharing agreement.

Nothing to Hide campaign

On 10 May 2009, Air New Zealand launched a controversial and widely publicized TV advertising campaign, Nothing to hide.

The campaign featured more than ninety Air New Zealand staff, eight of whom were chosen for starring roles and who swapped their real uniforms for a body painted version. Chief Executive Officer Rob Fyfe made a cameo appearance in full body-paint.

The campaign was designed to differentiate Air New Zealand from low-cost competitors who levy additional charges if a passenger wants to check a bag or have a drink. Air New Zealand have airfares that include baggage allowances and refreshments.

The TV commercial was accompanied by a new in-flight safety video using the same theme. The safety video, titled Bare Essentials, is shown on all Boeing 737-300-operated flights. It features a pilot and four cabin staff. Another version was released later, this time for the Airbus A320.

The TV ad and in-flight safety video both use the track "Under My Skin" by New Zealand singer Gin Wigmore.

Both videos can be viewed on the campaign website Nothing To Hide, complete with bloopers and behind the scenes. On YouTube the TV commercial has attracted almost 4 million views and the in-flight safety video gathered over 4.5 million. The campaign has been reported by international networks such as CNN and the BBC.

In late 2009 Air New Zealand started to put up billboard ads where a body painted staff member was walking into a carwash or ready to go down a water slide or even ready to jump off a diving board.

'Dear Listener' campaign

In May 2010, the New Zealand Listener magazine had put an article on the Air New Zealand - Virgin Blue trans-Tasman alliance that suggested that due to budget constraints, Air New Zealand would be downgrading its services into a no-frills airline. Air New Zealand subsequently published their responses in sign language advertisements in various newspapers, including The Dominion Post, and posted the translation on a website, http://www.dearlistener.co.nz.

Alternative propulsion

In the effort to develop an aviation biofuel, Air New Zealand and Boeing researched the jatropha plant to see if it was a viable green alternative to conventional fuel. A two-hour test flight using a 50-50 mixture of the new biofuel with Jet A-1 in the number one position Rolls Royce RB-211 engine of 747-400 ZK-NBS, was completed on 30 December 2008. The engine was then removed to be scrutinised and studied to identify any differences between the Jatropha blend and regular Jet A1. No effects to performances were found. The use of jatropha has been identified as a possible future fuel but large tracts of low quality land needed to grow the plant would have to be found without impeding other agricultural uses. Sadly Air New Zealand took the opportunity to retire ZK-NBS due to the economic global slowdown in 2009. It was then flown to the USA and broken up for reusable parts.

See also

• Air transport in New Zealand
• Ansett Australia
• Jetconnect
• List of airports in New Zealand
• Transport in New Zealand

External links

• Air New Zealand
• AirNZ.mobi Air New Zealand mobile site
• Air New Zealand at YouTube
• Nothing to Hide
• Air New Zealand Fleet Age
• Air New Zealand Data & Statistics
• Air New Zealand company history