Air New Zealand celebrates: Japan coup

Friday 26th January 2001

RISING SUN: A daily service

By Graeme Kennedy

Air New Zealand's share of the Japanese market could grow 20% - or by $100 million - as a result of a new air service agreement allowing increased capacity on the lucrative Tokyo and Osaka routes from mid-next year.

Air New Zealand collects $500 million in annual revenue from the Japan market.

The agreement, announced yesterday by Transport Minister Mark Gosche and Tourism Minister Mark Burton, offers the carrier a daily service to Tokyo, up from five a week, and the ability to replace its two 767s into Osaka with larger 747s.

The extra Tokyo flights will begin in May next year when a second runway initially able to handle 767s opens at Narita while a change to 747s into Osaka will depend on evidence of high demand.

Japan is New Zealand's fourth-largest visitor market with about 150,000 arrivals a year and the increased capacity gives potential for a further 30,000 who could spend about $150 million on top of another $100 million in revenue for Air New Zealand.

Meanwhile, under the existing agreement Air New Zealand will increase capacity into Tokyo, currently three 747s and two 767s, with five 747s for the northern summer schedule.

The 747s will become available for the route after the carrier ends services to Frankfurt on April 1. Europe-bound passengers will then fly on code-shared Lufthansa services.

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