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

 


Contrasting Airline Fortunes Lesson for Transport Sector

6 March 2014

Contrasting Airline Fortunes Lesson for Whole Transport Sector

Authoritative weekly transport report, NZ Transport Intelligence Business Alert, says the contrasting fortunes of Air NZ and Qantas offer sharp lessons in the transport industry. The publication's editors point out how Air NZ took its medicine a decade ago, restructured and became highly cost-efficient, while Qantas sheltered behind its statutory protection, and became progressively less competitive, dragged down by an overweight cost structure.

The weekly report's editorial notes while Air NZ sees the journey ahead as “incredibly exciting,” Qantas has had to run to its mother Govt with a plea for its debts to be guaranteed. This is what happens when an industry allows itself to grow flabby. A lot of pain lies ahead of Australia’s national flag carrier.

NZ Transport Intelligence Business Alert notes Air NZ stands to gain directly from the restructuring Qantas will have to undergo. It has a 25% stake in Virgin Australia, which has done extremely well in taking on what by comparison is an 800-lb gorilla.

The publication says the primary lesson to be absorbed in this era of the transport industry, is you’ve got to be fast and nimble. It’s a lesson being learnt not just by Qantas, but to a degree by state-owned KiwiRail here, which is having to talk to the Govt about another cash injection, after the outage of the Aratere interisland ferry weighed on earnings.

NZ Transport Intelligence Business Alert is a subscriber only weekly report for the Transport and Logistics sector.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news