Air New Zealand won't make money in 1HFY2011; licensing of 'cuddle class' delayed
Air New Zealand CEO Rob Fyfe stated the carrier “won’t make money” in the six months to 30-Jun-2011, but services will be full during the Rugby World Cup (NZPA/Bloomberg, 09-Jun-2011). The carrier has been affected by the earthquakes in Christchurch in Japan and the floods in Queensland. Mr Fyfe stated the period from Jan-2011 to Jun-2011 was the toughest he had experienced in his six years as CEO. On the upside, the carrier anticipates an earnings boost of NZD40 million from the Rugby World Cup which begins on 09-Sep-2011. The boost from the RWC is “significant when you’ve come off a tough year”, stated Mr Fyfe.
Meanwhile, Air New Zealand has delayed plans to licence its "cuddle class" seats to other carriers due to high passenger demand for the lie-flat units. The carrier began operating B777s with the units to help compete with Emirates and Singapore Airlines on long-haul services. Mr Fyfe stated in Dec-2010 that the carrier was in talks to sell the technology to other carriers.