Air NZ Struggling

My second favourite airline Air NZ has been losing $NZ1 million per week on long haul traffic. It is now investigating ways to cut $NZ100 million out of expenses. Some of the rumours I have heard are:

  • reducing London flights  (NZ flies to Heathrow via Los Angeles and via Hong Kong every day)
  • pulling out of London altogether handing sectors over from LAX and HK to Virgin Atlantic
  • slashing hundreds of jobs
  • halting all “large  projects” (the message from Air NZ CEO Rob Fyfe: “no sacred cows”)
  • reducing the quality of meals and service in Premium Economy and Business
Any bets on what may happen?
The good news is that its domestic and trans-Tasman routes are making money and overall the company to make an $NZ81m profit after tax this year.
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