Qantas Group is expected to update the market on the cost of the Japan and New Zealand earthquakes (The Australian Financial Review, 28-Mar-2011). Analysts expect the disasters to cost the group AUD156 million combined. Qantas and Jetstar operate to Japan and are expected to continue operations to the country to protect valuable landing slots at key airports, which are allocated on a “use it or lose it” basis.
Qantas to quantify Japan and New Zealand costs
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Air New Zealand FY2016: record profits. Growing competition means it is time to move upmarket
For an airline that is not large, Air New Zealand has been remarkably successful, now, notably in FY2016. It has selectively established helpful partnerships and, elsewhere, largely remained under the radar. It has excelled at marketing, and at market positioning.
But its home country is no longer the secret – or as inaccessible as – it used to be. That is a growing challenge for Air New Zealand, which for years has quietly and effectively exploited the limited competition. Two new entrants to Auckland in the North American market, and more nonstop capacity from North America to Australia – a 6th freedom staple for Air NZ, will elevate the threats. In the peak summer Chinese airlines will have one third as much capacity into New Zealand as Air NZ has long haul capacity to the world. The New Zealand government has considered granting fifth freedom rights for unserved routes. Domestically, Jetstar is challenging Air NZ on select regional routes.
South Pacific aviation markets will be defined by China’s expansion
The nature of the South Pacific's geography makes finding the right partners for its airlines essential for their survival in international long haul markets – as most are.
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)