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.


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news