Air NZ "fighting fit", adds more Dreamliners
Air New Zealand’s CEO Christopher Luxon said the airline is in the strongest position it’s ever been in, and the new challenge is to move from being a really good airline to being “a truly great, world class organisation.”
Speaking at an end of year lunch with travel and trade pundits yesterday, Luxon established a future in which the airline “keeps a grip” on its costs, expanding profit, cashflow and delivering good returns to its shareholders.
“We’re going to reinvest like we’ve never reinvested before,” Luxon said.
Through enhanced customer service, an engaged culture, and superior commercial results, Air New Zealand is set to soar even higher, which is impressive for an airline that virtually needed rescuing by its government not so long ago.
Luxon said the company will be investing $2.2 billion in new aircraft, including many more 787-9 Dreamliners, and 13 new Airbus A321 and A320 family aircraft coming in across the Tasman.
Air New Zealand will also pump over $40 million into upgrading its lounges this year alone, which features the Sydney flagship lounge already underway, as well as Brisbane soon to follow.
The airline is additionally focused on investing more in advanced kiosks and mobile technology to create a “seamless travel experience.”
Luxon talked about thinking like a fast moving consumer business, triggered by demand and focusing on building markets around the world.
He also announced the purchase of two more Boeing 787-9 Dreamliners for Air New Zealand, adding to the three already acquired, expected for delivery in late 2017 and the latter half of 2018.
The purchase will take the fleet total to 12, with a further seven Dreamliners on firm order for future dates.
Luxon admitted that in order to play to its strengths, the airline didn’t have the European marketplace in its sights, but rather would work to become the airline of choice within the Pacific Rim.
“We can operationally send our aircraft anywhere in the world, but how do we build a business doing this?” he said, citing the choices made to come out of Beijing, or shake up its routes to LA as key to providing quality ahead of quantity.
Partnerships are also a major part of the future landscape of Air New Zealand, with collaborations such as the Trans-Tasman Alliance or the partnership with Tourism Australia major game-changers for the company.
Working with other airlines is something Luxon explains is critical to strengthening the company, including the recently announced strategic alliance with Air China, or the alliance with Virgin Australia.
“We can’t fly everywhere on our own,” Luxon said, stating that by changing and working with other airlines and cultures, it strengthens the business of Air New Zealand.
Promotional campaigns and marketing is something Air New Zealand is renowned for, and Luxon acknowledged this, sharing a recent safety video and ‘The Kiwi Sceptics’ campaign that conned four Aussies into a New Zealand holiday to change their views on the destination.
The success of these measures in recent years has helped solidify Air New Zealand as a competitive airline in the Pacific Rim.
“We’re proving through our results that we can compete with anybody,” Luxon said.
“We’re not where we want to be completely and it’s not perfect by any stretch of the imagination, but we’re on the right pathway.”
“We’re not just surviving, we’re thriving.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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