Bangkok--27 Nov--Centre for Asia Pacific Aviation
Centre for Asia Pacific Aviation notes the no-deal with Qantas in the Tasman market has spurred the first in a series of likely steps. Air New Zealand is cutting capacity on New Zealand-Australia routes by 11% from Apr-07, following the abandonment of its codeshare plans with Qantas, with Wellington Airport worst affected.
"It is another example of an Asia Pacific flag carrier disciplined in its operations, choosing profits over market share", according to the Centre's Executive Chairman, Peter Harbison.
Air New Zealand’s Tasman cutbacks follow the carrier’s suspension of the Auckland-Singapore route and the cancellation of seasonal Christchurch-Los Angeles services in the Northern Winter Schedule. But other long-haul markets are expanding, as part of a plan announced mid-year to grow capacity in that segment by 9%. A new Shanghai service and second daily service to London via Hong Kong have shown good early signs.
"More changes on the Tasman are likely now Air New Zealand has trimmed its presence. Qantas could shift more operations to its low cost Jetstar unit, while Pacific Blue could seize the opportunity to boost its presence," stated Mr Harbison.
When Air New Zealand previously sought approval for a de facto merger with Qantas, its CEO stated there was "no Plan B" if the deal was rejected by competition authorities. But, following rejection of the latest, more modest codeshare proposal, the prospects of any deal with Qantas are remote. 'New World Carrier', Virgin Blue, and Air New Zealand now appear to have coinciding and complementary goals.
"With merger and acquisition talk washing through the industry, "Plan Blue" would be one combination that makes a lot of sense," concluded the Centre's Mr Harbison.