Air NZ cuts network growth targets, costs
ney, Melbourne, Brisbane and Perth.
Cranes have been in the news for all the wrong reasons recently.
This month a seven tonne metal bin fell 20m from a crane at a Surfers Paradise construction site. It followed a similar incident in Mermaid Beach where a woman had a lucky escape after a hook fell from a crane to the ground 2m in front of her. AIR New Zealand has downgraded network growth targets and delayed the delivery of new aircraft following a twomonth review prompted by its reduced earnings guidance.
The dual-listed carrier, which also launched a fresh $NZ60 million ($A57.6 million) cost-cutting initiative and an overhaul of its long-haul economy cabins, yesterday said it was planning for network growth of three to five per cent over the next three years.
That’s down from the previously planned five to seven per cent. The carrier launched the review in January after downgrading its full-year pretax earnings guidance to between $NZ340 million and $NZ400 million, from between $NZ425 million and $NZ525 million.
Chief executive Christopher Luxon said the airline, which last month reported a 35.4 per cent fall in first-half profit, would improve revenue growth, capital efficiency, operating costs and the customer travel experience into 2020 and beyond.
“The actions we are announcing today are focused on re-aligning our business to ensure a return to earnings growth in the lower growth environment,” Mr Luxon said.
“Air New Zealand is experienced at adapting to changing macro environments, and the actions outlined in the business review today will ensure the business is more dynamic, increasingly competitive and financially resilient for the future.”
Air New Zealand has delayed by between one and at least four years the delivery of six new aircraft. However, it will launch new direct services between Auckland and Seoul in November and increase the frequency of Auckland-Taipei and Auckland-Chicago flights to up to five times per week from December.
Mr Luxon said Air New Zealand was ensuring that each of its international aircraft are directed at strongly profitable routes.
“Our No. 1 priority is optimising our network mix to maximise profitable growth,” he said,