Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Strategic Alliance Benefits and Detriments - NECG

December 9, 2002

Air New Zealand & Qantas

Strategic Alliance Benefits and Detriments

Public benefits

... Cost savings through:

- Economies of scale

- Improved aircraft selection and purchasing

- Efficiencies of $183 million for New Zealand (by year 3)

... Scheduling efficiencies leading to:

- Improved flight frequency and capacity

- Enhanced connectivity

- Potential for additional direct services

- Annual benefits worth $21 million for New Zealand (by year 3) ... Increased number of tourists to New Zealand through:

- Improved promotion efficiencies and levels

- Decreased travel time and complexity for inbound tourists

- Encouraging Qantas Holidays to promote New Zealand as a destination

- Additional 53,000 tourists per year and a gain of $148 million to New Zealand by year 3 ... Increase in engineering and maintenance jobs for Air New Zealand

- Makes Air New Zealand the preferred provider for Qantas maintenance work

- Air New Zealand will be assured some $39 million in annual billings allowing them to invest in new maintenance (increasing capacity to compete internationally for further maintenance work from other third parties)

... Improved freight operations and capacity particularly from NZ to Australia

- An additional 247 tonnes of capacity / week

- Annual benefit of $4.6 million by year 3

... Improved efficiency in use of capital

- The alliance decreases the possibility that the Government will need to commit additional funds.

... Global competitiveness

... Preservation of New Zealand’s national flag carrier

... Will stimulate entry of a new no-frills entrant which is likely to be more profitable than it would otherwise be without the alliance

Public Disadvantages

... Possibility of rise in airfares and hence reduction in number of travellers

... Reduction of competition in marketplace.

... Restrictions on Air New Zealand’s capability to grow into the Australian domestic and beyond market.

... Perceived loss of national ownership of the flag carrying airline

Net Benefits NZ$1.433 billion over first 5 years.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news