DAVID FULLBROOK / SINGAPORE
Business class scrapped as carrier launches all-economy 737-300s with 136 seats
Air New Zealand (ANZ) is to scrap business-class services on its domestic jet routes and operate a low-frills model as part of a major revamp over the next 18 months.
Changes, which include more services across the network, are being forced on the carrier by the targets for improving the bottom line laid out in the five-year plan accompanying last year's government recapitalisation.
The main focus of the revamp is the airline's domestic operations, which are the core of the carrier's business and where "further competitive challenges" are expected in the near future, says the airline. The main domestic trunk routes will be served by a new product, Air New Zealand Express, to launch on 27 October with reduced fares. It will use ANZ's Boeing 737-300s reconfigured to all-economy class, with 136 seats instead of 122 economy seats, as now.
The carrier believes yields will not fall because more passengers will fly, the only food it will provide on board will be snacks and tickets will be sold online.
Freedom Air, ANZ's low-fare trans-Tasman subsidiary, will launch services to Queensland from Auckland, Christchurch and Wellington on 27 October. Its fleet will increase from four to five 737-300s.
ANZ flights from Auckland to Sydney will rise to 28 weekly from 20; Fiji services will increase from seven to eight weekly in November. Capacity on the Christchurch-Sydney route will rise 38% when a Boeing 767 replaces a 737 used on the twice-daily service.
Los Angeles flights will increase to twice daily from 10 weekly. ANZ will add an additional weekly service to Honolulu, bringing the total to three, while Sydney-Los Angeles services will rise from three to five times weekly.
Osaka services will operate daily instead of six times weekly, as will Hong Kong services, up from five weekly now.
The airline is working on new short- and long-haul products and service specifications. ANZ says it is beating earnings and gearing targets set by the government, but warns that meeting targets for the next few years will be tough.
New Zealand's government was forced to prop up ANZ last October when the carrier suffered financial problems after its takeover of Australia's ailing Ansett.
Source: Flight International
