AirNZ CEO: Emirates' trans-Tasman A380 flights 'not a big threat'

AirNZ CEO: Emirates' trans-Tasman A380 flights 'not a big threat'

Air New Zealand is confident of holding onto its half of the trans-Tasman travel pie, despite the presence of Emirates' Airbus A380 superjumbos – replete with business class seats and first class suites – darting daily from Sydney, Melbourne and Brisbane to Auckland and back.

"The Tasman has always been a very contested piece of water," observes Air New Zealand CEO Christopher Luxon, speaking to Australian Business Traveller on the sidelines of an international Star Alliance media briefing in Frankfurt, "but we've been able to maintain our share pretty well on the Tasman."

Alongside partner Virgin Australia the Star Alliance member claims 52% of Australians flying to New Zealand and back.

"The real challenge is the a number of 'fifth freedom' flyers that are on the route now," Luxon adds – flights which, under commercial aviation rights, permit an airline from one country to carry passengers between two other countries.

Emirates is the most noticeable of these fifth freedom players across the Tasman, buoyed by its Qantas partnership.

But the colossus of the Middle East "is not a big threat to us," Luxon believes, "because we fly our wide-bodied aircraft – the Boeing 777-300ER and 787 Dreamliner – over in the morning and back in the evening for our corporate customers, and those have an excellent business class with lie-flat beds."

"And we do have corporate customers who opt for those flights. If I'm going to Sydney for the day I tend to go out on the 6am or 7am flight and then be back home at midnight."

The rest of the daily schedule is given over to the smaller all-economy Airbus A320 jets, which Luxon says provide "massive frequency throughout the day and also work from a schedule point of view... whereas I think some of the the fifth freedom flying is a way to subsidise and recover some costs but the schedule doesn’t always work for a business traveller."

"So it's not a big issue, it's just that the amount of added capacity coming into the Tasman from those players is the challenge."

David Flynn travelled to Frankfurt as a guest of Star Alliance.

David Flynn

David Flynn (David)

[email protected] / @djsflynn

David Flynn is the editor of Australian Business Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
 

13 Comments

  • Jason Bird

    Speedbird

    18 May, 2017 07:33 am

    When I first saw the headline, I thought to myself, what arrogance. However, when you read further, he does have a point as they seem to have both frequency (A320's) and high end biz class covered (B777 & B787) 
    Member who gave thanks

    David

  • sgb

    sgb

    18 May, 2017 07:50 am

    I still think what arrogance, none of his aircraft offerings offer what 1 Emirates A380 does.  I know how I always get to Auckland.
    No member give thanks

  • Serg

    Serg

    18 May, 2017 10:55 am

    Well if you have enough points to burn then why not. However paying money for First to just leap the pond? Thanks, not for me.
    Member who gave thanks

    worldwanderer

  • reeves35

    reeves35

    18 May, 2017 08:03 am

    The A380 is a nice way to cross the Tasman but it is not a serious business alternative due to its timing.  For AU business people it arrives into AKL too late and it is better to fly over the evening before.  The return service timing is good however.  

    For NZ business people, it is not particularly convenient either way.  Due to the time difference, they can get an early departure on NZ or VA (or QF) out of NZ and still make a morning appointment in MEL or SYD and EK does not offer an evening return service either so unless they want to spend another night in AU and lose most of the next day, EK is useless.
    Members who gave thanks

    David, worldwanderer

  • west

    west

    18 May, 2017 08:43 am

    New Zealand is more than just Auckland. No trans-tasman business / premium economy out of any other centres with Air NZ is a big negative.
    Member who gave thanks

    rich5011

  • Upul Anthonyu

    UANTHONY

    18 May, 2017 09:37 am

    Absolute arrogance but that is just NZ, he does not say that AKL is the only place to get the wide body across the Tasman on their metal. You cant beat EK on Tasman. QF/EK only choice for me to Ch-Ch and timings are perfect. 
    No member give thanks

  • roby

    roby

    18 May, 2017 10:00 am

    Nothing stops NZ from doing their own fifth freedom flying especially out of Australia. 
    No member give thanks

  • Richard Brown

    Richard Brown

    18 May, 2017 11:56 am

    If flying economy, give me an Air New Zealand A320 any time. If Koru or FF, then seats on left hand side of plane offer more leg room, entertainment is good and drinks can be ordered from seat. Also far less people to board the plane than an A380. In business class, however I would rather take Emirates. Lounge offers a more comprehensive food offering, the bar on board is a differentiating factor and seats/entertainment are good.
    No member give thanks

  • FLX

    FLX1

    19 May, 2017 12:08 am

    In Trans Tasman mkt:
    EK=
    U get the best product @ similar fare level but the schedule choose U, not the other way around.

    NZ, QF and other local players=
    U get much worse product than EK but U or your meeting across the strait choose the schedule...like most other normal consumer services.

    NZ is right.  Until EK hv unlimited frequency freedom in Trans-Tasman mkt, they won't be a big threat.
    No member give thanks

  • Eunice  Travels

    EuniceTravels

    19 May, 2017 08:20 am

    As a regular traveller back and forth nz-sydney, depending on the class you travel on, and depending on the airline, quantas, air nz, emirates.. I find that air nz flights business/econonmy to be much friendlier and the food is scrumptious,so in this aspect - Quantas, Emirates and the rest at this stage, need to catch up. CEO statement is positive and indicative of how air nz reigns the air in this aspect.
    No member give thanks

  • jad01

    jad01

    19 May, 2017 12:21 pm

    Emirates business on the A380 offers more privacy and you can actually see out the window, versus Air New Zealand business that face everybody else like I am sitting in a waitng room with my back to the window.
    No brainer, Emirates it is.
    No member give thanks

  • worldwanderer

    worldwanderer

    20 May, 2017 11:02 am

    Used EK a few times MEL-AKL in Y basically because I am in love with A380s and the price at the time was good. J is hard to justify for 3hr flight.
    However not EK again. Infrequent services, unreliable departures up to 4hrs late in some cases, very poor unfriendly on-board service, dirty cabins and unhygienic practices by crew.
    Much prefer QF or NZ.
    No member give thanks

  • Gary Glover

    AstroBoy

    20 May, 2017 03:06 pm

    One of the beauties of the EK A380 is you can book five QF business rewards seats as QF Bronze on points. We have done this as for a trip in March 2018. Coming back mama and papa are first class (30th wedding anniversary) and the 3 (adult) children will have to slum it in business. Child abuse or what?
    No member give thanks

  • Gary Glover

    AstroBoy

    20 May, 2017 03:09 pm

    PS We did Sydney Christchurch and Wellington Sydney QF business in March 2017 on points - great service but poor seats.
    No member give thanks

Guest

24 Sep, 2017 02:29 am

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