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Air New Zealand plans to grow beyond North America's west coast to Las Vegas, Chicago or Houston

Analysis

Air New Zealand will diversify its North American network by flying outside the west coast to Chicago, Houston or Las Vegas, the carrier has said on Chinese media and as reported in the New Zealand Herald. This fourth continental North American destination would join Los Angeles, San Francisco and Vancouver. Air NZ also serves Honolulu. The largest un-served North American cities from New Zealand are New York and Toronto, according to OAG Traffic Analyser, but the distances are too prohibitive for the small traffic base. After New York and Toronto, Las Vegas and Chicago are the next largest markets, with Houston half the size of Chicago.

Las Vegas is significantly closer than Chicago but OAG Traffic Analyser shows fewer premium bookings and more discount economy tickets, reflecting Las Vegas' more leisure orientation. However, this could be suitable for Air New Zealand's denser 787-9. Las Vegas would bring some connecting opportunities while Chicago and Houston would bring more. Continental mooted a Houston-Auckland service that has not been realised, and may have been raised as a political ploy when the merged United-Continental established joint headquarters in Chicago and wanted to fend off international expansion at Houston Hobby airport.

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