Air New Zealand cherry-picks its routes

By Chris Hutching

Friday 8th March 2002

Air New Zealand is cherry picking the Auckland market it perceives as most strategically significant for its future, leaving a vacuum in the South Island where it has retreated from key overseas routes.

South Island tourist businesses and exporters are angry the national carrier has abandoned direct Christchurch to Singapore flights just weeks after its bailout by the government in what appears to be a scorched -earth restructuring plan under new chief executive Ralph Norris.

Late last year Air New Zealand slashed capacity on transtasman flights 30%.

The airline wants to focus on the non-resident traffic between Auckland and Asia, where Singapore Airlines operates more flights.

The outcome for South Island manufacturers and produce exporters is a likely increase in freight charges of more than 10% from re-routing via Auckland.

Christchurch International Airport chief executive George Bellew said he was negotiating with Singapore Airlines, which had indicated it would increase flights for the next summer tourist season.

Qantas is also looking at opportunities created from Air New Zealand's retreat.

Greg Bridgman, general manager/marketing for BTI New Zealand, said the two-way demand for a direct connection between Christ-church and Singapore was so strong that other operators will be looking to quickly fill the void.

BTI NZ is the largest travel management company in New Zealand and was formed late last year after the merger of Network Travel with BTI Barlow (NZ).

Mr Bridgman said with the travel industry quickly regaining lost ground since September 11, the airline's decision seems shortsighted.

Air New Zealand result, Shoeshine

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