Post by vgp on May 18, 2008 8:27:21 GMT 12
Air New Zealand eyes flight cutbacks
By GARRY SHEERAN - Sunday Star Times | Sunday, 18 May 2008
Air New Zealand could be cutting back on the frequency of many long-haul routes by the year's end as the global airline industry braces itself for a downturn that could prove worse than the fallout from the September 11 attacks on New York.
Air New Zealand chief executive Rob Fyfe says high fuel prices and the malaise affecting the US airline industry which is now spreading to Asia-Pacific means "we are entering very difficult times financially".
"If demand starts to reduce, we can see by the end of this year aircraft having to be parked up on the ground," he says.
Already, seven US airlines have collapsed in the past four months.
But unlike 2001-02 when the national air carrier almost went broke Fyfe believes Air NZ is in great shape to weather the storm.
"To be honest, I am sitting here rubbing my hands, looking forward to what lies ahead," he says. "We couldn't be in better shape."
The airline had a cash surplus of more than $1 billion which would allow it to cope with market downturns, and was running a conservative balance sheet.
"We have got out of loss-making long-haul routes, and we are the market share leader on all those we now fly," he says.
"We also have no extra aircraft coming on stream so we are not going to be trying to load capacity into a soft market."
Fyfe also believes Air NZ's ability to survive will in large measure depend on a revolution he has been quietly driving within the airline itself since he became chief executive in 2005.
www.stuff.co.nz/4552578a13.html
two days after this: rnzaf.proboards43.com/index.cgi?board=civil&action=display&thread=6002
By GARRY SHEERAN - Sunday Star Times | Sunday, 18 May 2008
Air New Zealand could be cutting back on the frequency of many long-haul routes by the year's end as the global airline industry braces itself for a downturn that could prove worse than the fallout from the September 11 attacks on New York.
Air New Zealand chief executive Rob Fyfe says high fuel prices and the malaise affecting the US airline industry which is now spreading to Asia-Pacific means "we are entering very difficult times financially".
"If demand starts to reduce, we can see by the end of this year aircraft having to be parked up on the ground," he says.
Already, seven US airlines have collapsed in the past four months.
But unlike 2001-02 when the national air carrier almost went broke Fyfe believes Air NZ is in great shape to weather the storm.
"To be honest, I am sitting here rubbing my hands, looking forward to what lies ahead," he says. "We couldn't be in better shape."
The airline had a cash surplus of more than $1 billion which would allow it to cope with market downturns, and was running a conservative balance sheet.
"We have got out of loss-making long-haul routes, and we are the market share leader on all those we now fly," he says.
"We also have no extra aircraft coming on stream so we are not going to be trying to load capacity into a soft market."
Fyfe also believes Air NZ's ability to survive will in large measure depend on a revolution he has been quietly driving within the airline itself since he became chief executive in 2005.
www.stuff.co.nz/4552578a13.html
two days after this: rnzaf.proboards43.com/index.cgi?board=civil&action=display&thread=6002
