New Zealand-Indonesia aviation market: Emirates to push rapid growth

Premium Analysis

Traffic between New Zealand and Indonesia should grow significantly over the next year following the launch of the first year-round route between the two countries. In Jun-2018 Auckland-Bali became the latest fifth freedom route for Emirates, stimulating demand on a route previously only served seasonally by Air New Zealand.

Emirates often has a profound impact when it enters a new market as a fifth freedom competitor. For example, Emirates significantly shook up the Italy-US market when it launched Milan-New York services in 2013, prompting a vicious response from US majors. 

Emirates already had significant fifth freedom experience in New Zealand, competing for several years on multiple trans-Tasman routes to Australia. Emirates now serves only one trans-Tasman route, compared to four just over two years ago, but has resumed expansion in New Zealand with the new Auckland-Bali-Dubai service. 

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