8 Nov 2011

Air New Zealand reviews costs

3:47 pm on 8 November 2011

Air New Zealand is looking at the future of its long-haul routes as part of a company-wide review aimed at cutting costs.

In August, the airline announced a full-year profit of $81 million, down 1% from the previous year.

Excluding one-off items, its underlying pre-tax profit fell 45% to $75 million.

The company says it is looking at every aspect of the business to see how performance can be improved and that will involve closer scrutiny of costs.

The airline says aspects of its international business are a cause for concern and it will be considering whether to continue with all the routes it currently flies.

More seats for major tourist route

Meanwhile, Air New Zealand says it will increase domestic jet services between Rotorua and Queenstown for the 2012/13 summer season and also re-introduce flights to Mt Cook/Aoraki.

The airline says an extra 390 seats will be available between November 2012 to March 2013 between Rotorua and Queenstown via Christchurch thanks to the provision of six flights a week on a Boeing 737 aircraft.

Air New Zealand currently operates three services a day between Rotorua and Queenstown via Christchurch on a twin-engined turbo-prop ATR aircraft.

The airline will also add Mt Cook/Aoraki to its list of domestic destinations.

A Christchurch - Mt Cook - Queenstown route will be trailed for six weeks in the 2012/13 summer to meet high-season demand from offshore markets, particularly from tourists coming in from Japan.

The service will be operated three times a week by the Air New Zealand subsidiary Mt Cook Airline using a 68-seat ATR aircraft.

The airline last operated services between Christchurch and Mt Cook a decade ago.