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


Air NZ cuts Beijing services to concentrate on Shanghai

Air NZ cuts Beijing services to concentrate on Shanghai

March 28 (BusinessDesk) - Air New Zealand plans to cut its twice-weekly direct flights between Auckland and Beijing in order to concentrate on services to Shanghai which it will add a fifth weekly service in moves it calls an “expansion” of services to China.

“Following a review of current services into China, Air New Zealand has determined that this expansion will best be achieved by consolidating services into Shanghai and serving Beijing as a one-stop destination in conjunction with Star Alliance code-share partner Air China,” the airline said.

It will add a fifth weekly service to Shanghai from July 4 but will suspend its twice-weekly direct Auckland to Beijing service from June 30.

Travel between New Zealand and China has ramped up in recent years, with the number of short-term Chinese visitors climbing by about 49,000 to an annual 152,000 in the year ended Feb. 29 from 2010, while the number of kiwis rose almost 12,000 to 69,000 over the same period.

Air NZ is aiming for a $110 million profit improvement from its long-haul services by 2015, which are now an underperforming part of the company. The airline’s first-half profit sank 61 percent to $38 million on higher fuel costs and fewer international passengers.

International airline group general manager Christopher Luxon said the airline still considers Beijing “an important and growing market” and its Air China code-share arrangement provides convenient connections between Shanghai and Beijing in both directions.

“Air New Zealand has been operating to mainland China for more than five years and is highly committed to the potential of the market long term,” Luxon said.

The airline has just created a new position of head of Asian operations and appointed Sandeep Bahl, “a highly experienced airline executive in the region,” to the position in its Shanghai office from the beginning of March.

“Under his guidance, we will focus our marketing and sales resources on the Shanghai region of around 14 million people as we seek to provide customers a daily service to and from this important gateway in China.”

The shares fell 0.6 percent to 85 cents in trading today.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news