Nelson's Originair not flying but hopes to be back in the air soon, says Inglis

Nelson-based Originair is temporarily earthbound but hopes to be flying again shortly, managing director Robert Inglis says.

However, it would operate a reduced service aimed mainly at the Palmerston North-Nelson route and charter work, he said.

Fairfax confirmed on Monday that the fledgling Nelson-based airline had ceased flying on Friday April 1.

Originair has been operating Nelson-Palmerston North and Nelson-Wellington, and its website-advertised schedule has flights to and from both destinations on Mondays, Wednesdays, Thursdays, Saturdays and Sundays.

The website shows all Nelson-Wellington and Nelson-Palmerston North flights are  "unavailable" or "fully booked" for the next two months.

But it appears to be open for reservations on a restricted timetable from mid-June.

Airport chief executive Rob Evans said Originair had not provided any advice about a change in its timetabling or status "but you would best get any of this information from Originair themselves".

In February it emerged that the Civil Aviation Authority had placed temporary restrictions stopping Air Freight NZ Ltd from operating Originair's planes after safety concerns were raised.

Using its operating certificate, Air Freight NZ had been flying two British Aerospace Jetstream 32 aircraft in Originair livery.

Inglis said that without its own operating certificate, Originair was a "virtual airline" and had arranged a temporary fix using two Metroliners operated by Airwork NZ Ltd to get it through the peak season.

This arrangement finished at the end of last month.

He said he was expecting imminent advice from Air Freight NZ that its "one or two issues" with the CAA had been sorted out and it would begin flying for Originair again.

That would allow the airline to reinstate its booking system.

He couldn't say exactly when this would happen because the CAA's investigation had "nothing to do with Originair", but he understood the clearance was due any day.

However, if it did not come Originair had other options.

"There's at least one other party that we could operate the services with."

Originair began flying the Nelson-Palmerston North route in mid-August last year, and added Nelson-Wellington in September.

Inglis said the airline had received "very good support" on the Palmerston North route but the Wellington market had become more competitive with the arrival of Jetstar.

In a separate development, he confirmed that an Originair charter flight to Warbirds Over Wanaka at Easter was cancelled at the last minute.

This was because the Airwork operating certificate did not cover Wanaka Airport, which hadn't been known when the bookings were taken.

Originair had gone to some trouble to re-book passengers on other airlines and to provide refunds for those who decided not to go, Inglis said.

Stuff Nelson Mail

BILL MOORE

Last updated 18:28, April 4 2016

 

Big year for tourism in Nelson

 

An early Easter has helped Nelson's bumper tourist season continue.

There were concerns the run of poor weather the week before the Easter long-weekend would put people off.

Department of Conservation Motueka operations manager Mark Townsend said the "stunning forecast" meant everything was full.

"In the Abel Tasman we've had a full park through Easter. Some huts are still full now," he said.

"It's been an absolute record season for us. It exceeded all our expectations."

He said he had noticed a growth in the slower autumn shoulder season and an increase in school group visits to previous years.

"It was a great Easter. It's a record season going on for us."

Golden Bay Visitor Centre manager Casey Port said the door count saw 337 people through the door over the weekend in comparison to 125 on Saturday last week.

Port said Easter falling earlier this year had an impact and kept holiday-makers coming through.

"It was definitely a busier time, especially with the weather, the weather was great," Port said.

She said the 15 per cent surcharge at hospitality businesses didn't turn people away.

"The cafes were packed that's for sure. It was pretty good - very good trading."

Overall Port said January and February were the busiest two months of summer.

"We've had a great summer. We feel like it kind of kept trickling in for March."

Two 19-year-old German backpackers at iSite Nelson said they had stayed in Nelson since early February for the good weather and work, but have been in New Zealand since October and plan to stick around until June.

Kristine Schweinshaut said New Zealand seemed like a great place to spend a gap year and be immersed in nature.

Her friend Julia Schmitt spent the Easter long-weekend trekking Abel Tasman.

"The landscape was really beautiful," she said.

Schmitt said she would recommend Nelson to friends at home, but did find brasseries expensive.

Schweinshaut said the highlight for her was Tongariro National Park in the north.

Uniquely Nelson manager Simon Duffy also put the tourist numbers down to an expansion in the shoulder season and a run of good weather.

"The town is very busy. There are lots of tourist people in town, at the shops, markets and Mapua Easter Fair," he said.

Duffy said there was a real "buzz" about town and a lot of campervans around.

"It has been a long summer for Nelson as far as weather goes and the airline prices has helped bring people to Nelson. It's a lot more affordable to come down even just for a weekend away," Duffy said.

"It's very positive. The Paymark results over Christmas and January, as far as dollar spend, is reflective of a great summer and New Year for tourism."

When Duffy met with tourists over the weekend they expressed their delight in the area.

"Nelson has quite an authentic feel about it and that comes from the people of Nelson. It's a nice place to be," he said.

Duffy expected tourist numbers to drop off as winter approaches.

Nelson also swelled on Saturday when 457 competitors, their friends and families from across New Zealand, Australia, Europe and the United Kingdom stopped in town for the New Zealand Orienteering Championships.

Nelson Orienteering Club president Jill Clendon said it was the first one to be held in Nelson for at least 10 years and she expected the event would have had a positive impact on local businesses.

"We had competitors as young as seven and in their 80s," she said.

Stuff Nelson Mail

JESSICA LONG

Last updated 10:41, April 1 2016

Could this plane stop you getting jetlag?

 

Add to this the humidification system to decrease skin flakiness, throat scratchiness and dry eyes and you've got one comfortable flight. 19 hours stuck on a plane may never be a lot of fun, but the roll out of the Airbus A350 means we'll be able to make the trip more comfortably than ever before. The Airbus A350 is capable of pressurising a cabin to a more comfortable level than standard, which eases jet lag and allows you to feel more comfortable.Singapore Airlines has taken delivery of its first new Airbus A350-900 XWB, an aircraft that could potentially change the shape of international travel.

The "XWB" in its name stands for "Extra Wide Body" and the new aircraft is six inches wider than standard Boeing 787s, with a more vertical wall design to improve shoulder space.

But perhaps the most exciting development of these new aircraft is the ability to stave off jetlag.

It is also designed with a LED lighting system that can create 16.7 million shades of colour to simulate the natural phases of the day which will help reduce jet lag.

Stuff

Last updated 11:01, April 1 2016

Air Asia X touches down in Auckland

http://m.nzherald.co.nz/aviation/news/article.cfm?c_id=556&objectid=11610521 The first flight to Auckland by budget carrier AirAsia X flight has landed, starting a service that will substantially boost capacity to the Gold Coast and on the airline's home base, Malaysia.

Flight D7 206 landed at about 4.12pm marking a return to this country after flying to Christchurch for about a year in 2011-12.

The flight was delayed leaving the Gold Coast by a passport processing problem that affected all Australian airports.

Auckland Airport has estimated the new AirAsia X daily services will be worth about $176 million to the economy.

The airline is Southeast Asia's biggest budget carrier and is using an A330-300 aircraft on the route with a seating capacity of 377.

That's a little below the Airbus' maximum of around 400 seats for regional flights.

The configuration will be AirAsia X's standard configuration of 365 economy seats and 12 premium flatbed seats.

AirAsia X's network covers Southeast Asia, North Asia, India, Australia and now New Zealand. Its key hubs are in Kuala Lumpur, Singapore, Jakarta, Bali, Bangkok, Delhi, Bengaluru, Manila and Tokyo.

This will provide more choice for New Zealanders travelling to those destinations and capacity for tourists from Malaysia, India and Indonesia, markets which are growing rapidly.

Over the past year 34,000 visitors from Malaysia, 41,000 from India and 18,000 from Indonesia came to New Zealand.

The airline flew to Christchurch from Malaysia for about a year but quit the service following the 2011 earthquakes, blaming sagging demand at a time fuel prices were going up sharply.

AirAsia has, like other airlines, taken advantage of relatively low fuel prices during the past year to expand to new destinations.

The airline launched with $99 promotional economy fares from Auckland to the Gold Coast and $249 to Kuala Lumpur with travel agents predicting the increase in capacity will keep a lid on prices to both destinations.

The Gold Coast-Auckland route is currently served with 20 weekly narrowbody flights, including eight from Jetstar, seven from Virgin Australia and five from Air New Zealand, Capa Centre of Aviation says. They offer about 7000 weekly seats on the route but capacity varies depending on the time of year.

READ MORE:

• AirAsia X launches with Gold Coast $99 fares

• AirAsia X flies back into NZ

AirAsia is the latest airline to come to New Zealand and existing carriers are piling on new capacity to serve a travel boom in what's being called a new golden age in air travel.

International capacity through Auckland Airport has grown by close to 10 per cent in the past five years as Kiwis travel overseas in record numbers - up 6 per cent last year to about 2.4 million - and the number of overseas visitors hits new highs, now above 3 million a year.

According to figures supplied to the Ministry of Transport, there will be close to a million extra seats in and out of New Zealand this year.

Around the world, air travel increased 6.5 per cent last year, when more than 3.5 billion passengers were carried. As much as half the increase in passengers is estimated to have been driven by falling fares.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Wednesday, 23 March 2016

Flight Check: Auckland to Rarotonga on Jetstar

Tracey Bond flies on Jetstar JQ129, Auckland to Rarotonga.

By Tracey Bond

The plane: A320 - this was the first time in 10 years a new airline has flown to the Cook Islands. Jetstar hopes it will make the route more affordable and encourage tourists to spend more money in the actual islands rather than on the airfare.

Price: Regular one-way fares from Auckland start from $219. The airline has three flights a week.

On time: Everyone was on board early for this inaugural flight. It takes three hours and 30 minutes to get to Rarotonga. We arrived 15 minutes ahead of schedule.

My seat: 2F with the basic starter fare.

Fellow passengers: New Zealanders and Australians heading off on holiday with a sprinkling of Cook Islanders as well as Jetstar executives and Cook Island officials.

How full: There were about 40 seats free so there was plenty of room to move about the cabin or spread out on to free seats.

Entertainment: The Jetstar magazine is available in all seat pockets with lots of travel advice, puzzles and quizzes. Plenty of people were using their own devices to watch films or TV shows and listen to music. Or you could go old-school and read a book.

Food and drink: With Jetstar, you can pre-purchase from the Jetstar Cafe online or pay on board using a credit card. There's a wide range of snacks, sandwiches, as well as a handful of hot options (ham and cheese toasties and pies) with some healthier salads available. The combo deals are good value: $10 for cheese and biscuits with a glass of wine.

Luggage: 7kg of hand luggage is included with the starter fare. Additional hold luggage is available at a cost.

The toilets: Three loos on this flight.

The airport experience: Check-in was a breeze. It was easy to get into the holiday vibe with the sounds of the Cook Islands playing as passengers waited in a queue. To celebrate the new route, all guests travelling to Rarotonga received a Jetstar swag bag containing a water bottle, luggage tag, visor and a guide to the Cook Islands.

Would I fly this again: The flight was quick and did what it said on the box: the cabin crew were super-efficient, friendly and helpful. Additional competition on this route gives travellers more flight times and price points to maximise their time in the beautiful Cooks. So that's a yes.

Herald

Tracey Bond - Tracey Bond is a travel writer based in Auckland.

Thursday, 31 March 2016

Air NZ set to ditch Virgin stake

Analyst says New Zealand airline is faced with a choice -- either tip more money in or get out now.

By Grant Bradley

Air New Zealand is set to bail out of its 26 per cent stake in Virgin Australia just over a week after agreeing to lend it close to $150 million and after years of spending close to half a billion dollars building up its holding.

At Virgin's current share price Air New Zealand faces a loss on its investment but selling down its stake is seen by analysts as being positive for the Kiwi carrier.

Although the airline is understood to be concerned about the scale of its commitment to Virgin relative to its own size, it is not seen as a desperate vendor and there are other large airline shareholders which could be potential buyers.

One analyst said the New Zealand airline was faced with a choice -- either tip more money into Virgin or get out now.

In an announcement which surprised the market, Air New Zealand said it was exploring options which could include a possible sale of all, or part, of its shareholding.

"Air New Zealand does not want a large minority equity position in Virgin Australia as it focuses on its own growth opportunities," said chairman Tony Carter.

Air New Zealand chief executive Christopher Luxon will quit Virgin's board immediately.

Andy Bowley, head of research at Forsyth Barr, said: "You either put more money in the pot which is increasing your investment and therefore your risk or you walk away."

Air New Zealand had to weigh up the choice of owning an equity stake in Virgin versus the financial reality.

While Virgin's financial performance had improved in the past year, it was still heavily indebted and the loan -- which was part of a $476 million loan announced last week -- was to help repair its balance sheet.

Virgin's debt is forecast by analysts at Merrill Lynch to balloon from around A$1.7 billion to more than A$2 billion in the next year.

First NZ Capital and Credit Suisse are advising Air New Zealand on options for its Virgin holding.

Air New Zealand shares closed up 1c at $2.86.

In its announcement yesterday, Air New Zealand said Virgin Australia has undertaken a successful transformation programme. However, early last year Luxon had expressed some frustration at how long it was taking the Australian airline to become profitable.

Since doing an alliance deal in 2010, Air New Zealand gradually built up its stake in Virgin which was seen as a way of exerting greater control over the airline which was seen as important in regaining a presence in the Australian domestic market after its disastrous Ansett foray and helping both airlines rationalise their transtasman operations.

Air New Zealand has spent around $480 million building up its stake of 914 million shares in Virgin. Before Virgin entered a trading halt yesterday Air New Zealand's stake was worth $381 million, according to Deutsche Bank analysis which said a divestment would be positive for Air New Zealand.

"Notwithstanding value already lost, we view the potential sale as a positive given the quantum of capital released to Air (NZ) and the lack of visibility regarding future returns from the shareholding. While Virgin has made progress in recent times, there have been no dividends paid to Air NZ and there is a chance Virgin will require more capital in the future."

Air New Zealand could use the capital in its own operations, or to degear the balance sheet.

Etihad Airways is Virgin Australia's second biggest shareholder with a 24 per cent stake. Singapore Airlines holds the third biggest stake, at 15.6 per cent, while Virgin Group has a 10 per cent shareholding.

The two airlines are seen as potential buyers of the Air New Zealand stake although ownership rules in Australia could trigger a full takeover.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Thursday, 31 March 2016

US air fares plunge - $699 return

http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11614053 By Grant Bradley

A travel agent is offering return seats from Auckland to Los Angeles for $699 and add-on fares to New York, Chicago or Miami for just another $10.

Helloworld is selling 200 seats aboard American Airlines' new service at the cut rate price - $100 lower than those announced yesterday.

The agency is selling the seats as a loss leader and helloworld general manager of marketing David Libeau said he expected them to sell out quickly.

``These prices are not sustainable long term but this is fun while it lasts,'' he said

``At $699 round trip to LA I would be surprised if we see anything lower in the market but you never know. These are loss leaders to drive business on the North American route and drive market share.''

Those opting for the $10 add-on flights further east must pay for accommodation or a cruise to the value of $500 or more.

Travel is between October 15 and December 15.

``The market is very competitive right now which has been driven by increased competition on the North American routes, particularly with American Airlines (to LA) and United Airlines (to San Francisco ) about to commence nonstop services from Auckland,'' said Libeau.

``This has driven a frenzy of sales activity which is great for the consumer while it lasts.''

American Airlines yesterday released Auckland-Los Angeles $799 return fares for later this year.

The airline, which has teamed up with partner Qantas to take on Air New Zealand on the route, will start flights in June using a Boeing 787-8 Dreamliner.

The fares are for travel between October 15 and December 15 and go on sale to midnight on April 1.

Travel is between October 15 and December 15.

`The market is very competitive right now which has been driven by increased competition on the North American routes, particularly with American Airlines (to LA) and United Airlines (to San Francisco ) about to commence nonstop services from Auckland,'' said Libeau.

``This has driven a frenzy of sales activity which is great for the consumer while it lasts.''

American Airlines yesterday released Auckland-Los Angeles $799 return fares for later this year.

The airline, which has teamed up with partner Qantas to take on Air New Zealand on the route, will start flights in June using a Boeing 787-8 Dreamliner.

The fares are for travel between October 15 and December 15 and go on sale to midnight on April 1.

"Five years ago return airfares on sale to LA retailed at between $1500 and $1600, double the cost of the airfare we have available through American Airlines from today. Increased capacity and competition among airlines continue to push airfare prices down - we believe this deal will be extremely well-received by Kiwis and is a sign of airfare pricing to come,'' House of Travel commercial director Brent Thomas said

Erwan Perhirin, American Airlines vice president, Asia Pacific said he expected competition to remain intense.

"It's one example of what choice and competition will bring to the market," he said.

This has allowed us to expand our footprint without investing in new capacity. We didn't have the aircraft to get into the route.

American Airlines is the world's biggest emerged from bankruptcy protection in 2013 but since its merger with US Airlines, restructuring and tail winds from lower fuel costs has made record profits and is growing aggressively.

In the past three years it has ordered 1000 new aircraft and is adding new planes to its fleet at the rate of two a week.

Perhirin said since announcing it would re-enter the New Zealand market, after a gap of 24 years, demand for its flights had been strong.

Airlines have struggled to make the transpacific market pay in the past, including Qantas which pulled out of the Auckland-Los Angeles route four years ago.

However, Pershirin said his airline was confident about the business case this time around for the flights which will be daily for much of the year.

"We don't go into a route without the full expectation and commitment to succeed and while pricing is one thing what we'll be focusing on is competing on product and service."

The American Airlines Dreamliners have a business class cabin with lie flat beds and offer wifi throughout the plane for US$20 a flight. It was also relying on the expertise of its revenue partner, Qantas.

"Working with Qantas, adopting best practices, tailoring the product and service offering to local expectations is going to be part of winning a long term viability," he said.

Stephen Thompson, Qantas senior vice president Americas, NZ, Pacific Islands and Japan, said his airline didn't have the right plane when it last flew here so struggled and crucially, wasn't able to use a partner's aircraft.

"This has allowed us to expand our footprint without investing in new capacity. We didn't have the aircraft to get into the route," he said.

The Australian airline has expanded in New Zealand with Jetstar flying into regional routes meaning passengers were able to fly on routes such as from Nelson to New Orleans more seamlessly on the Qantas-American partnership.

Sean Berenson, Flight Centre NZ general manager product said there had been considerable movement in the last six months with new carriers entering the New Zealand-US market and a marked decrease in pricing.

A couple of years ago a good tactical fare would have been around $1599.

``I imagine we'll see pricing continue to become ever more competitive on this route and its likely we'll see fares being really good day in and day out as opposed to really good tactical fares less often.''

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Thursday, 31 March 2016

Kiwi air links boom - Who's flying here now?

Fasten your seatbelts, kiwis: our airline connections to the rest of the world are improving and quite dramatically lately.

Here's a look at the new airlines and destinations, offering a huge range of new travel options.

A number of global carriers have made big announcements about routes into and out of New Zealand lately. Not only do we have more choice, but airfares are getting cheaper and the level of onboard luxury is improving.

American Airlines

Just this week, American Airlines said it would slash prices on the Auckland-Los Angeles route, releasing limited highly competitive $799 return fares for later this year.

Passengers from Wellington and Christchurch can travel via Auckland for another $100 each. The Wellington travel period is from October 17 to December 15 and the Christchurch window between October 15 and November 30.

AirAsia X

Just last week, budget carrier AirAsia X held a big event in Auckland and it has started a service that will substantially boost capacity to the Gold Coast and on the airline's home base, Malaysia.

The airline launched with $99 promotional economy fares from Auckland to the Gold Coast and $249 to Kuala Lumpur with travel agents predicting the increase in capacity will keep a lid on prices to both destinations.

AirAsia X's network covers Southeast Asia, North Asia, India, Australia and now New Zealand. Its key hubs are in Kuala Lumpur, Singapore, Jakarta, Bali, Bangkok, Delhi, Bengaluru, Manila and Tokyo.

This will provide more choice for New Zealanders travelling to those destinations and capacity for tourists from Malaysia, India and Indonesia, markets which are growing rapidly.

Emirates

The Dubai-headquartered airline's non-stop to Auckland-Dubai route means passengers can knock more than three hours off a flight which had been routed through Australia previously and more significantly on to Europe. The new direct flight was launched as the world's longest, taking more than 16 hours to get from here up to Dubai.

Hawaiian Airlines

This airline is offering highly competitive deals. The Honolulu-based airline has been flying to Auckland for about three years but already sees the potential for more capacity.

Air New Zealand

Our national carrier started flying to Buenos Aires and Houston in December and begins seasonal flights to Vietnam this winter. From June to October, Air New Zealand will fly three times a week from Auckland to Ho Chi Minh City's Tan Son Nhat International Airport with the potential to expand the season in subsequent years.

Philippine Airlines

Philippine Airlines is now flying to Auckland from Manila, with the potential to bring nearly 65,000 tourists a year to New Zealand. It will be the first time the airline has operated to New Zealand. Philippine Airlines will operate four days a week using an Airbus A320 with a stopover in Cairns, Australia.

Anne Gibson

Property editor of the NZ Herald

Thursday, 31 March 2016

Christchurch airport 'ticks a box' in building 200-room Novotel for short stays

Christchurch airport is "ticking a box" for short-stay accommodation with plans to build a 200-room Novotel hotel for late-night flyers.

The airport company is spending $80 million on the 4.5 star hotel, set to open by the end of 2017. It confirms details of hotel plans first announced in 2015.

Christchurch International Airport chief executive Malcolm Johns said the Novotel ticked a box for the city, which needed more short-term accommodation around the airport.

Many flights from Asia and Australia arrived in the evening and travellers expected to be able to stay within walking distance of the terminal, he said.

The hotel would be between the terminal building and part of the existing long-term car park.

Airlines were regularly asking what hotels Christchurch was developing to fill the shortage after the earthquakes, he said.

The airport had been handling a raft of new arrivals from Singapore Airlines, China Airlines, China Southern Airlines, Qantas and Virgin.

The airport was on target to reach 6.3 million passengers for the full year - up from 5.9 million the year before - and tourism numbers were expected to keep rising next summer.

Still, the average time that visitors stayed in Christchurch was one night, compared to two nights before the earthquakes.

Johns said estimates from Christchurch and Canterbury Tourism suggested the city was short of 800 hotel rooms and airlines saw the lack of accommodation as a "big risk".

Airlines had asked for up to 400 additional rooms near the terminal but the airport company had decided 200 was enough for now, he said.

It had considered factors such as estimates for passenger growth, tourism and the likelihood of more hotels being built in the central city.

Passenger numbers would have to rise again sharply before the airport added those extra rooms or built another hotel on its property, Johns said.

The airport has also spent $10m on a 280-bed Jucy Snooze backpackers beside its Spitfire Square retail precinct.

It has developed several commercial and industrial precincts on its property and last year looked at the feasibility of a 300-room hotel at the airport. After doing market research and taking independent advice it decided to build a 200-room hotel.

Christchurch and Canterbury Tourism chief executive Vic Allen said the hotel would hopefully encourage other hotel developers to build down town. They would want to be sure of year-round trade before they started building there, he said.

"It should send a message that the airport is very confident of the tourism flows."

Airport spokeswoman Yvonne Densem said Novotel would lease the hotel for 10 years on one of its standard hotel management contracts. Christchurch Airport's $80m for the development would cover the cost of the land, services, buildings and fittings.

She said over the past two years the airport had worked to ensure Christchurch was capturing its share of the growing tourism industry.

About 800,000 airline seats a year had been added by airline serving the airport, a growth rate of about 10 per cent.

"We expect to see growth continue over the next few years and with it growing opportunity for the Christchurch tourism sector."

Novotel has more than 450 hotels in 61 countries and this would be its ninth in New Zealand. The chain is part of the AccorHotels group which has 3700 sites in more than 90 countries.

 - Stuff

TIM FULTON

Last updated 17:48, March 31 2016

Kiwis say Air New Zealand NZ's most reputable company

Air New Zealand has proven it is still a people pleaser by reclaiming the top spot as the nation's most reputable company.

Car manufacturer Toyota was ranked second in the 2016 NZ Corporate Reputation Index after topping the survey in 2015 and 2013.

It is the third year running both organisations have been in the top two places on the index which has been produced for the past six years by research consultancy AMR.

The survey measures how New Zealanders view the country's top 25 companies across seven reputation drivers: products, innovation, workplace, citizenship, governance, leadership and performance.

It then ranks them according to people's emotional reaction.

Sky TV came in the bottom of the heap falling two places to 25th.

The pay television company came under fire in recent months with customers threatening to cancel their subscription after it rolled out a decoder software upgrade with new interface design, which some users found difficult to read and lagging.

Air NZ has previously ranked third in 2013 and first in 2011 and 2012.

The public were particularly impressed with Air NZ's fare prices, new planes, financial results, positive service experiences and famous safety videos.

Air NZ has a 3.7 out of five star rating on Glassdoor - a website which allows employees to rate their employer.

The airline also frequently has passengers raving on social media about its high standard of customer service and quality product offering.

AMR managing director, Oliver Freedman said Air NZ and Toyota's reputation success came down to high quality and innovative products and services.

"This perception is not new; it has been built over many years through consistent delivery," Freedman said.

Both organisations were good examples of how a consistently strong customer experience, along with leadership and transparency could result in long-term reputation benefits, she said.

"Reputation is not something that is built overnight – it is years of effort and hard work."

Big box retailer The Warehouse also performed well moving up one place to third spot.

Vodafone was the most improved with its reputation ranking jumping from 20th in 2015 to 9th.

The telco's reputation took a dive between 2014 and 2015 due to a decline in perception among customers, particularly around customer service.

Dairy giant Fonterra's reputation declined from 17th in 2015 to 23rd this year largely due to ongoing issues with farmgate milk prices.

REPUTATION RANKINGS

1 Air NZ

2 Toyota

3 The Warehouse

4 Z Energy

5 New Zealand Post

6 ASB

7 Foodstuffs (owner of New World and Pak 'n Save and Four Square)

8 Zespri

9 Vodafone

10 BNZ

11 Fulton Hogan

12 Meridian Energy

13 Genesis Energy

14 ANZ

15 Progressive Enterprises (owner of Countdown)

16 Fletcher Building

17 Westpac

18 TrustPower

19 Spark

20 Contact Energy

21 BP New Zealand

22 IAG New Zealand (owner of State, AMI, Lumley and NZI)

23 Fonterra Co-operative

24 Exxon Mobil New Zealand

25 Sky TV

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 - Stuff

JOHN ANTHONY

Last updated 10:35, April 1 2016

Jetstar and Air New Zealand regional fare war slashes some prices by 40 per cent

Airfares to Nelson, Napier, New Plymouth and Palmerston North have fallen sharply since budget airline Jetstar started flying to regional centres in December.

But the fare cuts don't always live up to the dramatically low discounts New Zealanders were promised by Jetstar.

When Qantas-owned Jetstar announced it would expand its network to the regions using a fleet of five 50-seat Bombardier Q300 turbo-prop aircraft Qantas chief executive Alan Joyce said regional fares could be slashed by 40 per cent.

The move immediately triggered a price war between Jetstar and Air New Zealand, which had previously enjoyed a monopoly on most regional routes.

Both airlines started selling thousands of tickets to the regions for as low as $9.

Nearly four months later one-way regional fares have settled to start at $29 on Jetstar and $45 with Air NZ.

House of Travel commercial director Brent Thomas said competition from Jetstar had driven prices down, but they were not 40 per cent cheaper across the board.

During high demand travel periods - such as peak business hours in the morning and afternoon - regional airfares had not become much cheaper, he said.

But there were pockets of travel times where airfares had become at least 40 per cent cheaper, he said.

"There has definitely been a downward shift in pricing."

Aviation commentator Irene King said travellers wanting the cheapest airfares should consider flying one airline one-way and return on the other.

"Consumers just need to be savvy and shop around," King said.

There was a perception that Air NZ's airfares were more expensive than Jetstar's but that was not always the case.

"Largely that's right but it's not always true."

King said Tuesday and Wednesday were the best days of the week to book for travellers wanting to snap up a deal.

"For some reason people don't like to travel on a Tuesday or Wednesday. Bookings are always much much lighter at that time of the week."

Booking travel for mid morning and early afternoon, six to eight weeks in advance, would usually get the best pricing, she said.

Airfares to the regions booked six weeks in advance and at non-peak times show Jetstar to be between $20 and $30 cheaper than Air NZ.

Many customers would be happy to pay extra for full service on Air NZ.

Jetstar customers frequently come up against hurdles such as online and kiosk check-in systems not working and flights being cancelled.

In March Jetstar cancelled 10 out of 100 regional flights between Friday and Sunday due to two separate cases of pilot illness.

Tickets booked a week in advance for travel during peak business hours on Air NZ could be hundreds of dollars more expensive.

A 6.45am Air NZ flight from Auckland to Palmerston North costs $239 while on Jetstar the same flight at 8.25am costs $69.

An early morning Air NZ flight from Auckland to Napier costs $169 compared to Jetstar charging just $45.

 - Stuff

JOHN ANTHONY

Last updated 12:00, March 29 2016

Air NZ lends $146m crutch to Virgin

Air New Zealand is deepening its commitment to Virgin Australia, chipping in to a near half-billion-dollar repair job on the Australian airline's balance sheet.

With a 26 per cent stake in Virgin, Air New Zealand is lending Virgin $146.5 million as part of the $476 million package to strengthen the Australian carrier's liquidity while it undergoes a review of its capital structure.

Its three other major shareholders - Etihad Airways, Singapore Airlines and Virgin Group - are contributing on a pro-rata basis.

Virgin's debt is forecast by analysts at Merrill Lynch to balloon from around A$1.7 billion to more than A$2 billion in the next year.

Air New Zealand has invested hundreds of millions in building its stake in Virgin, further building equity in a rights issue more than two years ago and now the loan.

Asked whether it could be tapped for more funds, an Air New Zealand spokeswoman said: "This loan provides Virgin with some time [to] undergo a proper review of their capital structure."

Virgin shares closed up A3c yesterday at A38c, while Air New Zealand shares closed up 3c at $2.87. Virgin chief executive John Borghetti said the review would include an assessment of the best mix of debt and equity capital and initiatives to enhance cash flow and profitability.

His airline is emerging from a bruising domestic battle with Qantas and even though it announced a A$71 million turnaround in pre-tax profit analysts have highlighted high debt, slowing momentum and weak operating cash flow.

Besides its equity stake, Air NZ has a revenue share alliance giving it access to the Australian domestic market and both airlines the ability to rationalise their transtasman operations.

Last month Air New Zealand chief executive Christopher Luxon - a Virgin director - said his airline's strategic rationale for its relationship remained unchanged and he was encouraged by improved profitability.

"We have [shareholder support] and the improved performances have been really encouraging."

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Tuesday, 22 March 2016

Air NZ cars go electric

  Air New Zealand is buying 76 electric light vehicles, including 36 $80,000-plus BMW i3 cars for its sales force.

The airline says the switch to electric will save around 65,000 litres of fuel per year and it's creating what's believed to be the leading corporate electric vehicle fleet in New Zealand.

The BMW i3 was named New Zealand Car of the Year for 2015 and as well as being electric, it features a sustainable design with much of its interior and body made from the same carbon fibre as the fuselage of Air New Zealand's Boeing 787-9 Dreamliner fleet. They have a sticker price of $84,000 although the airline is likely to have got a fleet discount.

The airline is also purchasing 12 Mitsubishi Outlander plug-in hybrids for longer range trips and 28 Renault Kangoo Maxi ZE 100 per cent electric vans for use at airports. The Kangoo is not currently available in New Zealand making Air New Zealand the first local customer for this vehicle.

Air New Zealand chief executive officer Christopher Luxon says the fleet transition forms part of the airline's commitment to sustainability and carbon reduction across the business.

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Air NZ moves to electric car fleet

BMW i-cars production line

"Taking a leadership position in carbon management and reducing our emissions is a significant goal for us under our Sustainability Framework. We recognise the opportunity electric vehicles present both for New Zealand and our airline and we are making the most of the country's renewable electricity supply by transitioning our ground fleet off fossil fuels where we're able to."

The Air New Zealand fleet purchase is a signifcant boost for the electric vehicle sector here. Just over 1000 plug-ins have been sold here.

Transport Minister Simon Bridges said he was "incredibly excited" about the opportunities they provide for New Zealand.

"It's clear that EVs are the future and it's great companies like Air New Zealand recognise this. The benefits of increasing uptake of EVs are far-reaching. They reduce our reliance on imported fossil fuels, reduce fuel cost and enhance the efficiency of our renewable electricity networks."

The airline will get the first of its new electric vehicles later this month and aims to complete the fleet transition by the end of the year.

In addition to the introduction of electric vehicles, the airline has begun installing charging points at its key car parking sites to support the new vehicles. This is in addition to the charge points already installed at a number of the airline's customer parking facilities.

The airline is also changing over its airport ground service equipment to electric including golf carts and tractors. Where electric options don't currently exist the airline is working with Z Energy to purchase bio-diesel from its site under development in Wiri.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Wednesday, 16 March 2016

Airline competition 'hotter than ever'

Cathay Pacific has a strategic agreement with Air New Zealand for flights between Auckland and Hong Kong.

While capacity is surging among existing and new airlines which is keeping a lid on fares or pushing them down, New Zealand is on course to seek agreements to allow links to more countries and through different routes.

This country has about 70 Air Services Agreements in place and has been signing them at the rate of about 10 a year.

Transport Minister Simon Bridges said he was likely later this month to seek cabinet approval for a tranche of new deals.

It's added competition that we've got to face and we'll do that against other carriers from China and the US that we didn't have a few years ago.

Cathay Pacific country manager Mark Pirihi

"The new Qatar flight is a great example of the necessity of getting these agreements in place. As soon as we learned that Qatar was interested we moved heaven and earth to get an ASA in place."

Auckland Airport estimates Qatar's new daily service will deliver 189,070 seats to the route and contribute $198 million to the New Zealand economy.

Bridges said his government was "on a mission" to increase the number of air services argreements to help boost the economy and provide more options for New Zealand travellers.

A veteran of the New Zealand long-haul airline market says he's never seen it so competitive and it is set to heat up as the government seeks new deals that could lead to more services.

Cathay Pacific country manager Mark Pirihi said there had never been so many options for travelers amid fierce competition.

"It's just getting stronger and that's reflected in the amount of capacity coming into New Zealand."

His own airline is introducing the world's newest widebody plane to this market later this year but now faces competition from another Middle Eastern carrier, Qatar Airways, which will begin direct services from Doha to Auckland in December.

Already this year Emirates has started daily direct flights between Dubai and Auckland, Malaysia's AirAsia X is weeks away from flying from Malaysia via the Gold Coast to this country, US carriers United and American Airlines will resume flying across the Pacific to this country in the middle of the year and Singapore Airlines will fly from Wellington to its home port via Canberra late this year.

Pirihi has worked for Cathay for 25 years and said inbound traffic was driving capacity in the first instance but Kiwis' ingrained and growing love of overseas travel habits were also driving demand.

``It's added competition that we've got to face and we'll do that against other carriers from China and the US that we didn't have a few years ago."

Cathay, whose strong passenger yields from New Zealand operations have contributed to the airline's best annual results in five years, increased capacity between Hong Kong and Auckland over summer. supplementing year round daily services with a Boeing 777 aircraft.

Pirihi said the airline was now working on its plans for next summer when it would use the Airbus A350XWB on the Auckland route. It is on track to be the first airline flying to this country to use the revolutionary new plane - which has several of the same features as the Boeing 787 Dreamliner.

Cathay Pacific has a strategic agreement with Air New Zealand for flights between Auckland and Hong Kong.

While capacity is surging among existing and new airlines which is keeping a lid on fares or pushing them down, New Zealand is on course to seek agreements to allow links to more countries and through different routes.

This country has about 70 Air Services Agreements in place and has been signing them at the rate of about 10 a year.

Transport Minister Simon Bridges said he was likely later this month to seek cabinet approval for a tranche of new deals.

It's added competition that we've got to face and we'll do that against other carriers from China and the US that we didn't have a few years ago.

Cathay Pacific country manager Mark Pirihi

"The new Qatar flight is a great example of the necessity of getting these agreements in place. As soon as we learned that Qatar was interested we moved heaven and earth to get an ASA in place."

Auckland Airport estimates Qatar's new daily service will deliver 189,070 seats to the route and contribute $198 million to the New Zealand economy.

Bridges said his government was "on a mission" to increase the number of air services argreements to help boost the economy and provide more options for New Zealand travellers.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Monday, 14 March 2016

NMIT aviation programme receives world class certification

Nelson Marlborough Institute of Technology's (NMIT) aviation engineering course has become the first in New Zealand to receive a new, internationally-recognised certification.

The aviation industry has lobbied the government for over five years to adopt the 'Part 147' licence, an amalgam of the Civil Aviation Authority's (CAA) current operating requirements and European Aviation Safety Agency training which aligns New Zealand with international aircraft maintenance standards.

NMIT's manager of aviation Raewyn Heta said the new certification would impact the majority of the course's 200 students.

"Any aviation engineering training organisation in New Zealand delivering a curriculum leading to the award of an aircraft engineering licence must now hold a 147 certificate, so for our students it is another positive outcome for their qualification.

"New Zealand has been behind the aviation world by not providing a regulatory environment for aircraft maintenance training that aligns with international best practice."

Many businesses, some of them major international airlines, previously avoided New Zealand aircraft engineering graduates because of its different aviation standards, Heta said.

She said it was also likely to make the polytechnic's course more attractive to international students.

An Air New Zealand spokesperson congratulated NMIT on its Part 147 certification and said it was good news for the company's regional maintenance base in Nelson.

Stuff

ADELE REDMOND

Last updated 08:24, March 18 2016

Qatar Airways coming to NZ - confirmed

Qatar Airways has confirmed it will begin a non-stop, more than 18 hour service between Doha and Auckland - set to become the world's longest flight - on December 3.

The airline will operate the daily flights with a Boeing 777, the same aircraft rival Middle Eastern carrier Emirates uses for its new direct service to New Zealand, which launched last week and is currently the longest commercial flight available.

New Zealand travellers will be able to use the service to reach European destinations such as London via Doha, Qatar's capital.

At 14,534 km, the Doha to Auckland route is slightly longer than the roughly 14,200 km Dubai-Auckland journey.

The Qatar Airways service is expected to take up to 18 hours and 30 minutes, compared with up to 17 hours and 15 minutes for the non-stop Emirates flight.

Qantas operates a Sydney to Dallas/Fort Worth service which covers 13,800 km and takes almost 17 hours.

The longest flight operated by Air New Zealand is Auckland to Houston, which covers 11,933 km and takes 14 hours and 30 minutes.

Emirates was expected to launch a service to Panama City later this month, which would have been slightly longer than the non-stop Auckland-Dubai flight in terms of duration.

The Dubai-based airline, however, has reportedly put that service on ice so it looks like the Auckland route will remain the world's longest duration flight until Qatar Airways starts flying to New Zealand at the end of the year.

Qatar Airways announced another 13 new destinations at a major travel fair in Berlin today, including services to the Italian city of Pisa, Sarajevo in Bosnia, Finland's Helsinki and Marrakesh in Morocco.

"These new destinations are where our customers want to go, and where we see the most opportunity to provide a best-in-class experience at great value," said Qatar Airways chief executive Akbar Al Baker.

Christopher Adams

The Business Herald’s markets and banking reporter

Thursday, 10 March 2016

Air NZ does revenue deal with United

Air New Zealand and United Airlines have entered into a revenue sharing agreement.

Under the deal the airlines will work together to promote and sell both airlines' services between New Zealand and the mainland United States, including domestic feeder services in both New Zealand and the United State.

The revenue sharing deal is similar to that Air New Zealand has with Virgin Australia, Cathay Pacific, Singapore Airlines and Air China.

United Airlines will begin services from San Francisco to Auckland service on July 1.

Air New Zealand and United have worked together since 2001 coordinating closely on codesharing, frequent flyer programmes and distribution.

The revenue share agreement will deepen this cooperation, the airlines say.

Subject to United Airlines obtaining government approval, it will begin operating a three-times-weekly Boeing 787-8 Dreamliner service between San Francisco and Auckland in July, moving to daily services operated by a larger 787-9 aircraft in November.

Air New Zealand chief executive Christopher Luxon said both the airline and New Zealand's economy stand to benefit significantly from the alliance.

"The United States is New Zealand's third largest tourism source market, contributing almost a billion dollars to our economy in the past financial year," he said.

"We know this is just the tip of the iceberg though, with around 30 million Americans actively considering New Zealand as a holiday destination."

United Airlines vice chairman and chief revenue officer Jim Compton said United was very excited about its agreement.

"Together, United and Air New Zealand will offer customers more seamless connections between New Zealand and cities across the U.S. than any of our competitors."

Air New Zealand currently operates direct to five North American cities with daily services from Auckland to San Francisco, double daily services to Los Angeles, four services per week to Vancouver and Honolulu, and five services per week from Auckland to Houston, increasing to daily flights during the December/January peak period.

Once United begins operating its Auckland-San Francisco flights the airlines will operate complementary services on the route, with United's flights arriving into San Francisco in the early morning and Air New Zealand's flights arriving around midday.

United Airlines and United Express operate an average of nearly 5000 flights a day to 342 airports across six continents.

In 2015, United and United Express operated nearly two million flights carrying 140 million customers.

Rival carrier American Airlines will start services in competition from Los Angeles to Auckland in June.

Grant Bradley

Aviation, tourism and energy writer for the Business Herald

Friday, 11 March 2016

Kiwi Regional Airlines plans to crowdfund $2 million for new plane

 

Kiwi Regional Airlines plans to raise up to $2 million through crowdfunding to buy a second aircraft.

The new aircraft would be a Saab 340 QC used for passenger and freight charters and as a backup for maintenance of its existing aircraft Saab 340A.

Last month the Hamilton airline cancelled flights after grounding the 34-seater aircraft for unscheduled maintenance.

While the Saab was out of action Kiwi Regional called in Air Chathams to run the service using its 50-seat Convair 580.

READ MORE: * Kiwi Regional Airlines plane grounded for repairs, Air Chathams steps in * Kiwi Air to test Taupo interest * Kiwi Regional Airlines announces alliance with Barrier Air * Kiwi Regional Air axes Queenstown to Dunedin flights * Kiwi Regional Airlines cancels flight, eyes second plane * Kiwi Regional Airlines not worried about having one plane, CEO Ewan Wilson says

The planned new aircraft would not be used to add capacity or new destinations.

Kiwi Regional launched in November and flies Hamilton, Nelson, Dunedin, Christchurch and Tauranga routes.

It cancelled a Dunedin-Queenstown service less than a month after launching.

Crowdfunding requires members of the public to donate money towards a project or business.

Some platforms allow pledgers to claim a stake in the project or company if the campaign successfully reaches its funding target.

Kiwi Regional chief executive Ewan Wilson said the fundraiser would be an equity crowdfunding campaign, meaning if the campaign reaches its target, pledgers would become shareholders.

No crowdfunding platform had been chosen.

"I find the idea of a community of New Zealand shareholders being a part of Kiwi Regional Airlines quite exciting," Wilson said.

There are eight crowdfunding platforms in New Zealand licensed by the Financial Markets Authority to let businesses sell shares to the public through their website

Wilson said having only one aircraft meant maintenance could be costly.

"When the aircraft breaks down we have to hire another one to be able to provide good customer service, that can be an expensive process to have only one airplane."

Vehicle importer and retailer 2 Cheap Cars originally owned almost a quarter of the airline but that was diluted as Kiwi Regional issued more shares.

2 Cheap Cars sold its remaining 10.4 per cent share in the airline to Andrew and Anne King of Hamilton.

King's investments include Kings Finance and Kings Cars. He is not a Kiwi Regional director or part of the airline's management.

More to come.

 - Stuff

JOHN ANTHONY AND KELSEY WILKIE

Last updated 10:47, March 7 2016

More Nelson jobs as Air Caledonie moves into Air NZ maintenance hub

The maintenance of New Caledonian aeroplanes in Nelson will mean 25 new jobs over the coming year has local bodies excited about opportunities for growth.

Air Calédonie became the first international customer of Air New Zealand's regional maintenance base on Sunday when its ATR42 aircraft arrived at the Nelson hangar, where Air New Zealand currently services its own Bombardier Q300 and ATR fleets.

Air New Zealand's chief operating officer Bruce Parton said the regional maintenance hub provides 187 engineering jobs, with 40 to 50 more jobs anticipated "as the third-party work comes on".

Air Calédonie will now undertake ten-year heavy maintenance for four of its aircraft in Nelson.

Air New Zealand spokesperson Anna Cross said the Nelson base was established with "a vision to make Nelson the preferred turboprob maintenance and overhaul facility in Australasia".

READ MORE: * Air New Zealand's flight attendant recruitment drive  * Air NZ has high hopes for Nelson hub * Air New Zealand Holidays stores closing * Air New Zealand flight diverted to Nelson Airport

About 50 local jobs were created when the maintenance hub opened in August last year, expanding on the 135 Air Nelson Engineering jobs already established.

The salaries for those jobs ranged between $80,000 and $120,000 and Cross said 25 upcoming engineering jobs would attract similar pay.

Nelson mayor Rachel Reese said she was thrilled at the news of more "well-paid, skilled jobs in the region".

"It's a big thing for Nelson. This is the type of employment we're really trying to attract so the regional maintenance base is a very important part of our community.

"Not only do we attract skilled employees to our region we also create exciting career pathways for our local young talent.  Alongside the new jobs is a focus on developing educational opportunities in aviation engineering."

Nelson Marlborough Institute of Technology [NMIT] director of marketing and international development Virginia Watson said NMIT offers the country's highest certification in aviation engineering outside of the Air Force.

"The whole industry is quite collaborative and it's a pretty exciting career for someone who is engineering minded. One thing we would like to see more of is school leavers going into that aviation engineering programme."

Watson said the fast-paced growth of Nelson Airport and skilled workers made the region an attractive area for aircraft maintenance, a sentiment echoed by Air Calédonie CEO Samuel Hnepeune.

"The close proximity of New Caledonia to New Zealand, together with the world-class facilities offered in Nelson and experienced turboprop engineers is a good proposition for our airline," he said.

 - Stuff

ADELE REDMOND

Last updated 17:49, March 8 2016

Nelson-Tasman tourism continuing to grow

" Recent summer statistics released by Nelson Tasman Tourism show strong growth in the region.

In December the total guests overnight increased by 7.7 per cent from the previous year, exceeding the national average of 4.7 per cent.

International overnight guests staying went up by 7.4 per cent, surpassing the national average growth by 6.2 per cent, while domestic guests increased by 7.9 per cent compared to national domestic growth of 3.8 per cent.

Nelson Tasman Tourism chief executive Lynda Keene said the statistics were encouraging.

"The fact we are exceeding national levels of growth at year-end December and the month of December is a good indicator of some of the region's successful marketing activities," she said.

The increase in airline competition at Nelson airport was also attributed to the boost in tourists to the region.

"Without a doubt, a key factor that has contributed to visitor growth has been Air New Zealand's increased marketing activities and the launch of new airline services; Originair, Kiwi Regional Airlines (KRA) and Jetstar." Keene said.

Originair began flying in August, KRA in October and Jetstar in December of last year.

"The region has received significant additional exposure by airlines with promoting Nelson as a new destination and we'll continue to work with them (airlines) to ensure the early growth trends with increased passengers will continue over the next twelve months," she said.

Official guest statistics for January and February won't be available for a few weeks but Keene said "on-the-ground indicators" from over the region seem to portray a successful couple of months.

The overall result is that yes, it is busier than last year," she said.

 - Stuff

TASHA LEOV

Last updated 12:01, March 4 2016