And that is that Air NZ managed to turn its business around yesterday and post a profit for the first time in three years.
By milking kiwis.
Not the rest of the world, just us.
We're all aware by now that they’ve jacked up the price on their domestic routes.
It might surprise you though to know that they’re pretty competitive on some the international routes where there’s lots of competition.
For example, try flying next week, let’s say Auckland to Wellington. Their cheapest flights on Thursday are double what Jetstar is charging.
But try booking an international flight on that day, direct flight to Singapore. Air NZ is the cheapest ticket.
Auckland Uni economics professor Robert MacCuloch’s on this. He wanted to know how much of their billion dollar turn around yesterday was off the back off domestic routes compared to international routes.
He couldn’t find it anywhere in the end of year accounts.
For Qantas he found it pretty easily in last year’s annual report, page 19, but Air NZ’s was nowhere to be found.
Judging by the texts yesterday, lots of people are clearly getting grumpy at Air NZ for this, and I don’t blame you. Especially if you live in a region where Air NZ is the only option.
But the number of people I've spoken to who complain about Air NZ and don’t fly anything else is extraordinary.
Someone today was complaining about $1400 for two adults to Nelson this past summer, I said why not fly Jetstar to Wellington then Sounds Air to Nelson?
Nah can’t be bothered... too inconvenient.
In that case, you can’t complain.
If you’re still flying them and you don’t like it, don’t fly them anymore. Fly someone else or drive.
Air NZ will be pushing it with us as far as they can to make as much money as they can, and you can’t blame them.
They’re a business answerable to their shareholders.
We might be grumpy but they clearly haven’t pushed it too far yet because we’re still flying.
Heather du Plessis-Allan is a journalist and commentator who hosts Newstalk ZB's Drive show.
2 comments:
this whole charade of 'buy local' without any rational thinking gets on my nerves :(
maybe there is a good reason why ncea math outcome expectations are purposely kept so low - there is a lot of merit if govt educates people poorly in math so govt owned companies can milk them dry while 'being kind'!
Sad to say, that the Author of this article, not being of NZ descent, will (possibly) be unware of the past NZ history of our Airlines.
To "look back" we had an Internal Airline - National Airways Corp (NAC - form 1947), that served the requirements of New Zealander's travelling from North South and elsewhere. Alongside them was TEAL (Tasman Empire Air Lines) - which had its origins with flying boats out of Hobson Bay, Auckland. When these "beasts of burden" ended their life span, we had the development of Mangere Airport, to accommodate the newer aircraft, purchased for improving International flights.
Thus we had the "birthing of - Air New Zealand", which also then incorporated NAC.
It is interesting to note, that the CEO of NAC, at the time, told Robert Muldoon, it would be the "worst mistake he made". But Rob was a "good friend" of the (new) CEO of ANZ. And Rob only listened to Rob.
At this point Internal airfares increased, and the common comment of the day was - "it was cheaper to fly to Sydney, than Invercargill".
Thus the NZ public have "paid more to fly within the Country" than out of.
Since the "removal of Covid travel" many flying Kiwi's will tell you the cost of internal flights had become dearer, and our "esteemed CEO ANZ, has been quoted as saying, ANZ was in the business of flying"(which costs money) - something the ANZ shareholders will be looking for - a return of profit - since covid days. That is something Heather rightly points out and the NZ public will be the source of that "reaping of cash".
I would also point out the Heather, your comment - (quote) - "If you're still flying with them and you don't like it, don't fly with them anymore". Fly (with) someone else)"(end quote).
Sorry Heather ANZ does not like competition within NZ, their past history "at kneecapping opposition" is well documented. JetStar (owned by Qantas) was "only allowed into NZ, on the back of Political dealings" - relating to flights into Australia.
Yup, "we are screwed" when it come to flying within NZ, and I do not think that any potential new Govt is going to change that.
ANON. of New Zealand.
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