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Air New Zealand

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Air New Zealand
File:Air New Zealand Logo.svg
IATA ICAO Call sign
NZ ANZ NEW ZEALAND
Founded1940 (as Tasman Empire Airways Limited)
1965 (as Air New Zealand)
HubsAuckland Airport
Focus cities
Frequent-flyer programAirpoints
AllianceStar Alliance (1999)
Subsidiaries
Fleet size51[1]excl. subsidiaries
Destinations53 incl. subsidiaries
Parent companyNew Zealand Government (73.72% owner)[2]
HeadquartersWestern Reclamation, Auckland City, New Zealand[3]
Key people
RevenueDecrease NZ$4,046 million (2010)[5]
Operating incomeIncrease NZ$708m (2010)[5]
ProfitIncrease NZ$82m (2010)[5]
Total assetsNZ$4,597m (2010)[5]
Total equityNZ$1,566m (2010)[5]
Websitewww.airnewzealand.com

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 26 domestic destinations and 24 international destinations in 15 countries across Asia, Europe, North America and Oceania,[6] and is currently the only airline to circumnavigate the world.[7] Air New Zealand is a member of the Star Alliance global airline alliance, having joined in 1999.[6]

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.[8] 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.[9]

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.[6]

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,[10] and awarded Airline of the Year in 2010[11] and 2012[12] by the Air Transport World Global Airline Awards.

History

A Douglas DC-8 at Sydney Airport in the early 1970s. Air New Zealand was an early operator of the DC-8.
The McDonnell Douglas DC-10 was first delivered in 1973.
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,[13] 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.[13]

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.[13]

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.[13] (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 12 September, 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.[13]

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.

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.[13] 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.[14]

Virgin Australia

On 21 December 2010, the New Zealand government approved an alliance between Air New Zealand and Australian airline Virgin Blue (now named Virgin Australia), which allows both airlines to expand operations between Australia and New Zealand with codeshares for trans-Tasman and connecting domestic flights, reciprocal access to lounges and frequent flyer programs.

Air New Zealand subsequently purchased an approximate 19% shareholding in Virgin Australia Holdings (the owner of Virgin Australia/V Australia/Pacific Blue/Polynesian Blue) to cement the relationship. It is understood to be a long term holding with Air New Zealand saying that at present it does not wish to own more.

Earthquake Emergency Airlift Operations

On 22 February 2011 at 12:51pm local time, New Zealand's second-largest city, Christchurch, was devastated by a 6.3 magnitude earthquake, causing loss of life and extensive damage to the city. Christchurch International Airport was immediately closed for 18 hours to allow airport management to assess the runway, allowing only the most urgent medical and rescue flights. After the "all clear" was given the airport was opened to international emergency aid flights, and later in the day evacuation flights in which Air New Zealand was to the fore. The airline drafted in all its available wide-body aircraft to airlift stranded tourists and refugees out of the shattered city. The airline also laid on the special evacuation fare of $50.00 to allow anyone to leave on flights served directly by the city. Auckland-bound domestic services were flown by Boeing 747-400, Boeing 777-200ER and the airline's new Boeing 777-300ER types. Wellington had Boeing 777-200ER and Boeing 767-300s serving, aircraft that are seldom seen at that airport. Provincial destinations such as Hamilton, Palmerston North, and Invercargill also received jet aircraft equipment not usually seen at those airports. Evacuation flights ended in March 2011 but compassionate airfares were made available to Christchurch residents for a period following official cessation of the fares.[15]

Corporation affairs and identity

Head office

"The Hub," Air New Zealand head office 36°50′42″S 174°45′12″E / 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;[16][17] it includes two connected six level buildings.[17] 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.[18] 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.[17] "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.[17]

The company previously had its head office in the Quay Tower in the CBD.[19] In its history the airline had its head office in Airways House on Customs Street East.[20]

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
  • 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.[21] 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 Jetstar Airways, also operating in New Zealand.

Technical subsidiaries

The following are technical operations subsidiaries of Air New Zealand:

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

Awards

  • Airline of the Year – 2012 Air Transport World Global Airline Awards[12]
  • Best Air Style – 2011, Premium Economy Spaceseats – "Wallpaper Design Awards"
  • Airline of the Year – 2010 Air Transport World Global Airline Awards[11]
  • Best Cabin Staff Australia/NZ Region – 2009 World Airline Awards, Skytrax[22]
  • Best Passenger Service Award – 2008 Air Transport World magazine awards[6]
  • Best Airline to the South Pacific, Australia, and New Zealand in December 2007 by Business Traveler Magazine in the United States[6]
  • Australasia's Leading Business Class Airline at the 14th Annual World Travel Awards 2007[6]
  • Best Pacific Airline – 1998, 1999, 2000, 2001, 2002, 2004 TTG Annual Travel Awards[13]
  • Best Airline to the Pacific – 1994, 1995, 1996, 1999, 2000, 2001Travel Weekly Globe Awards[13]
  • Best Business Class Carrier, Best Check-in Staff, 1998 Executive Travel magazine awards[13]

Sponsorships

Air New Zealand was the title sponsor of the Air New Zealand Cup domestic rugby club competition through the 2009 season.[23] 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.[24] The airline also sponsors the Air New Zealand Wine Awards and the Air New Zealand Fashion Export Award.[25]

Other major sponsorship by Air New Zealand:

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.[26]

Livery history

Air New Zealand's Koru tail symbol, seen on Boeing 737-300 aircraft ZK-NGM

The Air New Zealand symbol is a Maori 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.[27]

Special liveries

Air New Zealand 747-400 "Airline to Middle Earth".
Airbus A320 ZK-OAB with the All Blacks livery, at Los Angeles International Airport on its delivery flight to Auckland.
  • 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 kilograms (130 lb). The imagery featured actors from the film trilogy The Lord of the Rings against backdrops of New Zealand locations used in the films.[28][29]
  • 2005-2006 saw Freedom Air paint 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.
  • Three aircraft, Airbus A320s ZK-OAB and ZK-OJR and Boeing 777-300 ZK-OKQ, entered service in 2011 and 2012 in an All Blacks livery. The planes are completely black, with a silver fern motif covering the aft section of the fuselage.[30][31]

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 to the Cook Islands.[32] Air New Zealand will be the only airline to operate direct services between the two nations. Previously, passengers from Australia had to transfer in Auckland to a connecting flight to Rarotonga. Currently, Air New Zealand already operates out of Rarotonga to Auckland and Los Angeles. In 2012 - after securing a contract from the Australian Government Air New Zealand will launch twice weekly service from Sydney & Brisbane respectively to Norfolk Island on its A320 aircraft complimenting its existing direct services from Auckland. Auckland to Bali services starting 20 June 2012 will be initiated with a 767-300 on a seasonal basis with potential to be an year round service.

Codeshare agreements

As of April 2011, Air New Zealand has codeshare agreements with Star Alliance airlines and the following airlines:

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 three current 777-300ER aircraft service London via Los Angeles and Australia. The remaining fleet of six 747-400 aircraft operate daily to San Francisco, and occasionally to Vancouver and Australia. Two of these will be retired in 2011 and a further two in 2012 leaving a long term 747-400 fleet size of two.

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 code for Air New Zealand is 19, 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

Air New Zealand fleet[42][1]
Aircraft In Service Orders Options Passengers Notes
J P S Y Total
Airbus A320-200 15 11 — — — — 168 168
— — — 171 171
Boeing 737-300 14 — — — — — 133 133
Boeing 747-400 2 — — 46 39 — 294 379
Boeing 767-300ER 5 — — 24 — — 206[c] 230[c] Eventually to be replaced by Boeing 787-9.
Boeing 777-200ER 8 — 9 26 36 — 242 304 long-haul cabin
Boeing 777-300ER 5 — 15 44 44 60[d] 184 332 long-haul cabin (Skycouch in Economy)
Boeing 787-9 — 10 10
TBA
Launch customer for 787-9 model.
Total 51 19 36

Notes:

  • c On Tasman and Pacific flights, seats 07E through 15E are reserved Works Deluxe empty seats for .
  • d SkyCouches consists of three economy seats that come together to form one couch. There are 60 economy seats on the 777-300ER coming together to form 20 couches.
  • e Aircraft options [43]

Future fleet plans

Air New Zealand has ordered five Boeing 777-300ERs to replace its 747 fleet. The first one, ZK-OKM, is seen here landing at Wellington International Airport for an open day in the capital on 9 February 2011.

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.[44] 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).[44] 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.[45][46]

The airline has ordered five Boeing 777-300ER aircraft to replace its older Boeing 747-400s, with options on two more.[47] The first aircraft, ZK-OKM, completed its maiden flight on 8 November 2010,[48] and was handed over to Air New Zealand at Boeing's Everett, Washington plant on 22 December 2010.[49][50] Air NZ has placed a $340 million order for 7 ATR-600s and 5 options to arrive from October 2012 these will be based in Auckland.[51]

Dreamliner frustrations

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.[52] Boeing has suffered long development delays due to the many pioneering construction and fabrication techniques. The first aircraft are tentatively expected to be delivered in the first middle half of 2014, 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.{Citation needed|date=February 2012}}

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. [53] 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) 		Boeing 777-300ER
2010– (5)
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 (AVOD). 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 777-300ER 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. There is a slightly uprated seat on the 777-300ER, with lighter cream leather and purple trimmed seats. The in flight entertainment has also been improved, giving each seat USB and iPod connectivity, and a larger 12.1-inch touchscreen monitor[54].

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 777-200ER 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 41 in (1,000 mm).

Premium Economy Spaceseat

Premium Economy Spaceseats

Air New Zealand's new Premium Economy Spaceseat will initially be available only on the 777-300ER, although the airline's eight existing 777-200ERs will undergo a refit for the new cabins from mid-2011.

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 arm rests 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 cannot 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.

Pacific Economy

Pacific Economy on 777-300ER

Pacific Economy is available on all aircraft, in a 2-3-2 configuration on the 767, a 3-3-3 configuration on the 777-200ER, and a 3-4-3 configuration on the 747 and 777-300ER. 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 777-200ER and 747, a 9-inch screen on the 767, and a 10.6-inch touchscreen on the 777-300ER.

On the 777-300ER, 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 777-300ER. 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.[55][56] Each SkyCouch seat is equipped with the same basic facilities as a standard 777-300ER 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 curl up and "cuddle" together on the 30 in × 55 in (76 cm × 140 cm) flat surface.[57][58][59] 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.[60] The airline even went to release a billboard advertisement entitled "The Economy SkyCouch activity guide", suggesting "spoons" were allowed, but "forks" were not.[61]

In-flight entertainment and magazine

Forward 747-400 Business cabin with personal entertainment

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

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 their entertainment as soon as they board the plane, and continue 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 in-flight entertainment 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 767s as they use fold-out PTV.

777-300ER bar-style galley with KiaOra screen and tasting area

AVOD screen size varies:[62]

  • 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 in seat backs on all the domestic services and trans-Tasman, however it can still be found in the inflight magazine racks on international flights. [63] As a guide on international services, there is now a brief publication named Entertainment Magazine detailing the entertainment available on the flight, which also contains the buy on board 'in-Bites' menu[64].

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.[65][66]

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 was rolled out on all routes on 17 November 2010. All international Airbus A320 aircraft are refitted with an all-economy cabin that supports four options of service. Business Class is still offered on certain routes at selected times with services operated by members of the wide-body fleet[67] such as the Boeing 777 trans-Tasman to Sydney and Melbourne.[68].

Business class meal

There are four options, building on each other:

  • Seat – the basic option, consisting of a seat, one cabin bag up to 7 kg, 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, non-alcoholic and alcoholic drinks, and the ability to request a specific seat. Children receive a 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.

Air New Zealand is reintroducing Space+ seats on the Trans-tasman routes, with 35 inches of pitch in the first three rows of the A320s. These are only available to Works or Works Deluxe passengers, and only Airpoints Gold Elite and Gold members of Air New Zealand's Airports programme are allocated these seats.[69]

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.

Beech 1900D single-class cabin

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.[67]

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 four fare schedules – Grabaseat, Grabaseat + Bag, Saver, and Flexi. Grabaseat are non-refundable, and provide only carry-on baggage, while Grabaseat + Bag fares include one checked bag up to 23 kg. Saver fares are non-refundable, include one checked bag, and also include the ability for passengers to request their seat prior to check-in. Flexi fares are fully refundable, and includes 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, 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 Lemon & Paeroa, 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
Air New Zealand self check-in kiosks, Wellington

The Koru Lounge is the name for Air New Zealand's network of airline lounges around the world. Members of Air New Zealand Koru Club may access the lounges, and also get valet parking, priority wait listing, exclusive check-in, extra checked in baggage, and preferred seating.

Check-in kiosks

Check-in kiosks were 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 kiosks are manufactured by IER, a subsidiary of Bolloré.

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.[70] 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. The 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.

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 Air New Zealand ticketed and operated flights. Members are assigned a tier status, with increasing privileges ranging from Jade, Silver to Gold, then Gold Elite, by accumulating their Status Points which are earned separately from 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 for the Airpoints Silver and Star Alliance Silver, but with fewer benefits. There is a joining fee of NZ$50, which is waived if the person can prove they have already flown Business Class by Air New Zealand. The joining fee is also waived if you join the frequent flyer program during an Air NZ flight.

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 members to reach a higher 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.[71]

Advertising and promotion

Nothing to Hide campaign

On 10 May 2009, Air New Zealand launched a 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.[72][73]

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.[74][75] Another version was released later, this time for the Airbus A320.[76]

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.

Rico

From 2010 to 2011 Air New Zealand had a very successful[77] online campaign using a puppet called Rico. Rico had an active presence on Air New Zealand's YouTube page,[78] his own Twitter[79] and Facebook[80] feeds, and attracted both a devoted fan base and controversy.[81]

On the surface, he was an ambassador for the company and a world traveller often providing trips and worldly advice but deliberate problems with his accent (possibly meant to be Peruvian) made him too risque for normal media. His online videos often included famous guests[82] including Snoop Dogg, David Hasselhoff, and Lindsay Lohan.

Air New Zealand seemingly killed him[83] off late in 2011 (actually tying his fictional homicide to another marketing campaign based on Cluedo).

Incidents and accidents

Main articles: Air New Zealand Flight 901 and Eagle Airways Flight 2279

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).[84][85]
  • On 22 December 1978 a small plane became lost over the Pacific and Air New Zealand Flight 103 had to search for it and successfully found it using a technical navigation method, with the help of an oil rig under tow. The captain then released a thin stream of fuel out of the DC10's fuel dump tube creating a ten mile long vapour trail for the small plane to follow in the direction of Norfolk Island.
  • 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.[86]
  • 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.[13]
  • 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.[87]
  • 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 flap was missing 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.[88]
  • 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.[89] 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.[90]
  • On 8 February 2008, a woman attempted to hijack Air New Zealand Flight 2279 from Blenheim to Christchurch. 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.[91][92]

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.[93]

Minor seating policy

Main article: Airline sex discrimination policy controversy

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 [94][95]

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[96] and the Australian Competition and Consumer Commission.[97] 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.

'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.[98] 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. 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.[99]

See also

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