Air NZ boss defends new routes amid reduced services elsewhere
Air New Zealand CEO Greg Foran responded to criticism over three new international routes from Christchurch to Singapore, Tokyo and Perth. Foran said the cuts to Wellington and regional flights stem from Iran-war-driven fuel prices.
Air New Zealand announced this week that it will launch four-times-weekly Christchurch-Singapore, daily Christchurch-Tokyo Haneda and five-times-weekly Christchurch-Perth services. CEO Greg Foran, at a Wellington press briefing, said: 'The new routes were planned nine months ago; they are a revenue-generating investment in the Asia-Pacific region.' Christchurch-Singapore starts September 11, the Tokyo service starts September 25, and Perth flights begin October 14; total investment is NZ$480 million.
At the centre of criticism are a cut to Wellington-Auckland and Wellington-Christchurch capacity from 12 to 9 flights a day, the Queenstown-Auckland route from 8 to 6, and an 18 percent reduction on regional routes. Air New Zealand said jet fuel costs have risen 38 percent over the past six months and that 'without action, the 2026 financial-year FBT could fall by NZ$280 million.' Wellington Mayor Tory Whanau said in her critique: 'The capital status is being eroded; the government should consider regulatory review.'
Transport Minister Chris Bishop told RNZ: 'Regional coverage obligations are not contractually guaranteed; however, the government will hold a coverage and pricing discussion with Air NZ in June.' The Christchurch Regional Government and the Canterbury Chamber of Commerce have set aside NZ$25 million as a joint promotional fund for the new routes. Air New Zealand shares rose 4.2 percent for the week to NZ$0.92. ANZ analyst Nathan Penny wrote in a note: 'The new routes have annual additional gross revenue potential of NZ$90 million; however, fuel cost moves could erode the margin.'
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