As expected, the airline just reported a decent profit of $213 million dollars, which is a whopper when you consider the $725 million dollar loss this time last year. It means that business has just done a billion dollar a turn around.
They're already copping it from some for charging too much, and actually have been copping since analysts first started predicting this result two weeks ago.
There is no denying Air NZ has made this money off the back of charging a lot more than they used to. Domestic ticket prices are 15-20 percent higher than last year.
They're managing this by reducing the number of flights, which means because there are fewer seats, you have to pay more to buy one of the few seats available. Basic supply and demand.
It is frustrating to fly Air NZ at the moment, I agree.
The staff are often under the pump, the flights are late, they’re chocka. You struggle to get a seat and if you do, you struggle to change to a different flight on the day because of the shortage of flights.
You definitely never want to have to call their call centre because those are hours of your life you will never get back.
And you're probably taking a risk on that New York flight.
But still, I will defend them.
Because what do you want? The airline to make money or not?
We own 51 percent of Air NZ as taxpayers. The more money they make, the more money we get from them. They're considering paying a dividend this year, that’s good news.
And by the way, the same thing’s just happened over the ditch. Qantas- $1.5 billion dollar profit. Why? Expensive tickets.
Sure, no one likes forking out heaps for a plane ticket on an unpleasant trip.
But what we like even less than that is investing in an airline that’s not doing its job, which is to make us money.
Heather du Plessis-Allan is a journalist and commentator who hosts Newstalk ZB's Drive show.
3 comments:
Has Air NZ paid back any of the cash the tax payer fronted to bail them out a couple of years ago?
"The more money they make, the more money we get from them. They're considering paying a dividend this year, that’s good news."
The more WE get from them? The government you mean, which then spends that money on a load of crap. Fine if we got a minor reduction in our taxes but we never do.
Let's not pretend that AirNZ making money benefits us Kiwis. It sure as hell costs though when they lose money.
The major advantage to Air NZ not being run as a public service is at least they will attempt to maintain minimum standards as a public company.
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