New Zealand Start up LCC
05-04-2007 | 08:21 PM
#1
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Gets Weekends Off
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From: Contract purgatory
New Zealand Start up LCC
First I've heard of this one. Considering we are allready what most would consider a low cost carrier (go online and check out NZ domestic fares), I wonder what the point is. Always good to see competition, but the last thing we need at Air NZ is to have another discount off-shoot; we allready have Freedom.
May 4, 2007
Air New Zealand is considering launching a low-cost carrier to counter a proposal from an investment group for a no-frills domestic airline.
In a memo seen by Reuters news agency, Nathan Agnew, general manager strategy at the airline, said the idea was one of a number of proposals it was considering.
"The initiatives we are considering are wide ranging -- everything from whether we should have a low-cost carrier operating alongside Air New Zealand in New Zealand," the memo said.
A spokeswoman for the airline declined to comment further.
US aviation investor Patrick Weil is leading a group that plans to launch a low-cost domestic carrier, called KiwiJet, next year. Weil has said he had USD$20 million in backing for the planned airline.
The airline has limited domestic competition, with Australian carrier Qantas only operating limited routes. Local commuter airline Origin Pacific was wound up last August, with debts of millions of dollars.
Air NZ itself was saved from collapse in 2002 by a NZD$885 million (USD$650 million) government rescue package. after the collapse of its Australian operation Ansett. As a result, it made domestic services mostly no frills scrapping meals and magazines.
In January Air NZ cut fares by up to 26 percent, banking on an increase in passengers to offset any impact on profit margins.
The airline reported a 61 percent rise in profit for the six months to December to NZD$74 million (USD$54 million), and said it would pay a NZD$105 million (USD$77 million) special dividend.
(Reuters)
May 4, 2007
Air New Zealand is considering launching a low-cost carrier to counter a proposal from an investment group for a no-frills domestic airline.
In a memo seen by Reuters news agency, Nathan Agnew, general manager strategy at the airline, said the idea was one of a number of proposals it was considering.
"The initiatives we are considering are wide ranging -- everything from whether we should have a low-cost carrier operating alongside Air New Zealand in New Zealand," the memo said.
A spokeswoman for the airline declined to comment further.
US aviation investor Patrick Weil is leading a group that plans to launch a low-cost domestic carrier, called KiwiJet, next year. Weil has said he had USD$20 million in backing for the planned airline.
The airline has limited domestic competition, with Australian carrier Qantas only operating limited routes. Local commuter airline Origin Pacific was wound up last August, with debts of millions of dollars.
Air NZ itself was saved from collapse in 2002 by a NZD$885 million (USD$650 million) government rescue package. after the collapse of its Australian operation Ansett. As a result, it made domestic services mostly no frills scrapping meals and magazines.
In January Air NZ cut fares by up to 26 percent, banking on an increase in passengers to offset any impact on profit margins.
The airline reported a 61 percent rise in profit for the six months to December to NZD$74 million (USD$54 million), and said it would pay a NZD$105 million (USD$77 million) special dividend.
(Reuters)
05-07-2007 | 01:48 AM
#3
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Gets Weekends Off
Joined: Mar 2006
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From: Contract purgatory
Well. . .congradulations mate. Good to hear.
This start up is unlikely. They are banking on buying Jetconnect from Qantas, and that probably won't happen. We're upping our own domestic 737 fleet I hear anyway. Just advertised for a couple 737 skipper positions.
Let us know when you are around. All the best.
This start up is unlikely. They are banking on buying Jetconnect from Qantas, and that probably won't happen. We're upping our own domestic 737 fleet I hear anyway. Just advertised for a couple 737 skipper positions.
Let us know when you are around. All the best.
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