Air NZ Doing Well
Rob Fyfe suffers 80% shrinkage
And we wonder why?
Strange thing is every Air NZ flight I have been on in the past year has been full.
And we wonder why?
Strange thing is every Air NZ flight I have been on in the past year has been full.
posted by Cactus Kate at 1:59 PM
7 Comments:
Simple explanation - when everyone is expecting bas news, CFOs take the opportunity to write-off all the bad stuff they've been trying to hide for a while. Usually works and the following year managem,ent can show what a wonderful job of turnaround they've done :-)
I thought the same thing too - most Air NZ flights I've been on to Aus were full. I guess higher fuel costs and competition have really eaten into their profitability. Or they really mis-managed their $US hedge funds to buy light kero with.
re - about most flights being full...
You may have noticed the lack of bridges.
...and the fact there are less lights.
And their tickets prices aren't the cheapest either. I book cheaper United fares and end up on the AirNZ plane.
Hmm .. maybe everyone is doing that?
Full flight? That's because they cancel the ones that don't have enough people on them.
Simple reasons:
London and US origin tourist traffic collapsed due to the recession (and end of the Lord of the Rings fetish). Japanese tourist traffic continues its freefall on what were once the most profitable routes.
Business class demand worldwide has withered.
Tasman competition heated up with Pacific Blue and Emirates dumping capacity.
NZ$ collapse has offset the fuel price drop (the hedging has cost little) with no offsetting increases in inbound tourists.
They're losing a lot of profit because they screwed up their fuel hedging strategy.
http://tinyurl.com/bdmugx
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