Air New Zealand CEO Rob Fyfe as quoted in IATA's Airlines International, stated (01-Aug-2011) the carrier's strongest markets are Australia, the UK, US and Japan. He noted that while the UK and the US "are very steady", the carrier is "seeing a lot of growth from the Asia Pacific region; not only India and China but places such as Vietnam, too. So there is a definite shift eastwards in our traffic, which is in line with the industry trend." He also stated the B787 delay has had an "enormous impact on us". He added that the lack of clarity over the delay has "made it very difficult to make decisions on our future strategy". The carrier expects to have the B787 in operation in 2013. Mr Fyfe also noted that as New Zealand is "at the end of the line, geographically speaking", it is dependent on its Star Alliance partnership to make some routes viable.
Air New Zealand notes 'enormous' impact of B787 delays
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The region is characterised by relatively liberal access regimes and by partnerships of varying levels – in New Zealand especially, where Air New Zealand’s international network is dominated by JVs. Virgin Australia has built a ‘virtual alliance’ alongside HNA, Singapore Airlines, Etihad and Delta, with very little of its own metal flying outside Australia. At Qantas Group, international performance has improved markedly following its Emirates partnership, as its operating focus has shifted from Europe toward Asia and North America, with local JVs, and close partnerships with American Airlines and China Eastern continuing to grow and mature.
For all airlines in the region, the China market will define much of the growth over the coming decade. (This report is taken from the Jul/Aug-2016 issue of CAPA's Airline Leader)
Air New Zealand defends Australia-USA transit market as Qantas plans further USA growth with 787-9s
Air New Zealand is turning up the volume. For years the airline had a tidy, under-the-radar business carrying transit passengers between Australia and the US over its Auckland hub. Air NZ is now directly targeting the Australia-USA market with a sales and marketing push that includes an advertising campaign called "Better Way to Fly". CEO Christopher Luxon said in a statement that "capturing just a little bit more of that market would see hundreds of thousands more Aussies flying with us to North and South America...Many Australian travellers still think of us as a trans-Tasman carrier and that’s a perception we’re determined to change."
The shift that Air NZ envisages is being sought now – and not five or even 10 years earlier – largely because of external factors and competition. Air NZ's marketing may suggest an opportunistic push, but the reality is Air NZ is on the defensive. In the Australia-Americas market competitors have lowered their costs, adding city pairs, product improvements and significant capacity growth. 2017 and 2018 are expected to mean even more growth as a resurgent Qantas adds 787-9 services between Australia and the US, and in particular – to Dallas.