Air NZ announces record profit
Air New Zealand’s record profit probably won’t mean your next flight is cheaper, but the airline’s boss still reckons it is a great time to be a traveller here.
That is because of new market launches, increasing competition bringing more options for travellers, and money being ploughed back into upgrading or buying new aircraft, lounges and technology, chief executive Christopher Luxon said.
And with the number of people signed up to the Airpoints loyalty programme jumping by nearly a fifth to 2.2 million last year, customers seem interested.
Air NZ said yesterday it had made a record after-tax profit of $463m for the year ended June 30, the highest in its 76-year history.
This led to a $2500 bonus for a big portion of its staff, as well as a $260m dividend for the Government, which owns just over half of the company.
But while Luxon would not say the 42 per cent profit increase would result in airfares being slashed, he suggested the takeaway from the company’s best-ever result was that it was ‘‘a great time to be a traveller in New Zealand’’.
‘‘You’ve got so much competition coming into the marketplace, you’ve got Air NZ growing very strongly with big international markets and big growth domestically,’’ Luxon said.
Growth in tourism had been a big driver of the nation carrier’s performance, as Air New Zealand and its partner airlines, including United Airlines, Cathay Pacific and Singapore Airlines, bring about 45 per cent of visitors to the country.
New aircraft, like the Boeing 787-9, also increased fuel efficiency, which for a company which spends nearly $1 billion a year on it, helped keep costs down.
But he also warned this year would not produce another record, as the level of competition soared.
The confidence remained, however, because of three to four years of taking profits and ‘‘ploughing them straight back in the company.’’
Air NZ launched services to Buenos Aires, Houston, and Ho Chi Minh city in the second half of last year, which had gone much better than expected.
Flights to the Philippines were announced and then put on ice, where they remained amid security concerns.
Luxon said the airline still saw plenty of opportunity for new routes, but had nothing to announce just yet.
‘‘There’s still millions of consumers or potential visitors we’ve got to reach out to and build the proposition with. But every quarter we’re looking at new markets or emerging or potential new markets, in Asia, the Americas and Australasia, and that’s something that’s ongoing.’’
Kiwi company runs festival
A New Zealand entertainment company has been handpicked to run a major Italian fire-dancing festival this weekend. The two-week Festa Del Fuoco (Festival of Fire) on the volcanic island of Stromboli celebrates all manner of fire-eating and light show performances. Helping to run the event is Highly Flammable, a Kiwi troupe formed in Dunedin in 2010 and featuring stiltwalkers, fire-eaters, jugglers and other entertainers.
NZME to launch Chinese site
Media company NZME will launch a Chinese news site in partnership with the Chinese Herald, a privatelyowned Auckland publisher. The site, which will launch in October, will provide local news from the New Zealand Herald translated into Chinese, along with articles from the print version of the Chinese Herald and other Chinese sources. Nationwide, just under threequarters of the 171,000 residents who identified themselves as Chinese were born overseas.
Facebook scams fool punters
Auckland theme park Rainbow’s End has issued a warning that scammers on Facebook are offering tickets in return for filling out a survey. ’’This is not from us and is a scam to get passwords and other personal information. If you or someone you know has taken part please make sure you secure your accounts and report this to Facebook,’’ a park representative posted. Another link being distributed via Facebook asks people to fill out a survey in return for an $80 New World coupon. Yet another offered a voucher from Countdown ‘‘to mark its 25th anniversary’’.
Jetpack staff change
Jetpack company Martin Aircraft has a new chief executive, laid off several staff, and let go of board members. The Kiwi-invented Jetpack is being developed by ASX-listed Martin Aircraft, which announced that chief financial officer James West is now the chief executive. He replaces Peter Coker who is taking a newly-created role, vice-president global community of innovators business unit.