Hawaiian Airlines executive VP and CCO Peter Ingram, speaking at the CAPA Australia Pacific Aviation Summit, stated (08-Aug-2013) “judging from our experience” a major US carrier could look to add nonstop services from the mainland US to New Zealand, in competition with Air New Zealand.
Hawaiian Airlines: US carrier could provide Air New Zealand with nonstop trans-Pacific competition
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Cathay Pacific to Christchurch: contentious Air New Zealand JV as Cathay seeks greater "agility"
As Cathay Pacific is being forced to undergo a competitive metamorphosis it is exploring all options. The latest example is an expected announcement of a new Cathay Pacific route from Hong Kong to Christchurch in New Zealand's South Island. The service is expected to be seasonal (for the New Zealand summer), and is only Cathay's second seasonal long haul route after the Jan-2017 announcement of northern summer service to Barcelona.
New Zealand is a small network component for Cathay but one of its last strongholds, due to a joint venture with Air New Zealand. The New Zealand government reluctantly extended approval for the JV despite Cathay and Air NZ reneging on an offer to use it to link Hong Kong with Christchurch, as well as Auckland. This would thereby have extended the JV to benefit more of New Zealand – a sensitive local matter based on the assertion that Auckland was receiving disproportionate air service benefit.
Air NZ's JV with Cathay arch rival Singapore Airlines has resulted in SIA growing its presence in Christchurch. Cathay has been more frugal, and the NZ government determined that although the JV reduced competition, there was no prospective third competitor, so no harm done.
But now that Hong Kong Airlines has entered Auckland, and then expanded, the Cathay-Air NZ JV faces disbanding. By finally committing to a Christchurch route Cathay appears to be bidding to keep the JV in play. But the New Zealand government will still probably withdraw approval of the Air NZ-Cathay JV.
United Airlines reduces seasonal capacity in the competitive US-New Zealand/Australia market
After rapid growth in the market between North America and Australia/New Zealand, an airline has finally blinked: United Airlines will change its sole New Zealand service, San Francisco-Auckland, to only operate seasonally. United will rely on its JV partner Air New Zealand.
Auckland is less important for United than for American Airlines and its codeshare (but not JV) partner Qantas. Qantas has exited the Auckland-Los Angeles market, so American's entry to New Zealand gives it two nonstops from both Australia and New Zealand, enhancing presence across the region and making it easier to bring American visitors to both Australia and New Zealand.
United's adjustment to a seasonal service will mean that the New Zealand-North America (excluding Hawaii) market will expand by a reduced 10% instead of 17%. Even with this downward change there will be 17% more capacity than in the previous record year of 2008.