Japan-NZ flight deal worth $100M to Air NZ

By Phil Boeyen, ShareChat Business News Editor

Thursday 25th January 2001

Air New Zealand (NZSE: AIRVA) and Auckland International Airport (NZSE: AIA) should be first in line to benefit from a new arrangement allowing more flights between New Zealand and Japan.

The Government is estimating the new deal could be worth around $100 million in extra revenue for Air New Zealand and another $150 million annually to the economy.

The deal allows Air New Zealand to have two more B767 services a week to Tokyo, bringing the total to seven a week from mid-2002.

Subject to high demand, it also allows larger B747 aircraft to fly into Japan's other major international airport at Osaka on two services a week currently operated by smaller B767s.

At present Air New Zealand is the only airline operating non-stop services between New Zealand and Japan.

Transport Minister Mark Gosche and Tourism Minister Mark Burton claim in total it means that Air New Zealand should be able to increase its New Zealand-Japan seat capacity by nearly 20%.

"This is great news for the New Zealand tourism industry. The increased services made possible by this agreement are expected to boost Japanese visitors by around 30,000 a year.

"Those extra tourists are expected to inject approximately $150 million into the New Zealand economy in increased visitor spending alone. That's in addition to the $100 million in extra revenue expected for Air New Zealand.

"That $150 million roughly equates with the total value of our highly successful international wine exports. That gives you some idea of the magnitude of this agreement."

Japan is currently New Zealand's fourth largest source of overseas visitors at around 150,000 visitors a year.

In recent years New Zealand flights into and out of Tokyo's Narita Airport have been constrained by a shortage of take off and landing slots at that airport.

The extra flights into Tokyo will begin in May 2002, when a second runway opens at Narita.

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