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Transportation in New Zealand

New Zealand air transportation market: Air New Zealand the key industry player during 2012

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2014-01-22 06:05:03 - Transportation in New Zealand - a new market research report on

Air New Zealand Ltd, the operator of New Zealand´s national flag carrier, was the leading player within air transportation in New Zealand during 2012 with a value share of 50%. The company recorded a solid 26% increase in current value during 2012. During December 2012, Air New Zealand slashed ticket prices on the Auckland-Honolulu route in order to compete with Hawaiian Airlines, which began flying between Auckland and Honolulu in March 2013. Furthermore, Air New Zealand plans to add capacity on this route with a third weekly service set to be added during June to September. Nonetheless, Air New Zealand announced its intention to cease operating on routes between Hong Kong and London during 2012. The decision to withdraw from



this route was taken in a bid to recover profits and took effect from March 2013.

During May 2012, Malaysia-based low cost carrier AirAsia X withdrew from its Kuala Lumpur to Christchurch service, citing mounting costs. AirAsia X NZ Ltd began operating direct flights between the two cities four times per week in April 2011. Also during April 2011, China Southern Airlines began operating three weekly flights between Guangzhou and Auckland via Melbourne. This service proved popular and was expanded to daily flights in November 2011.

During November 2012, the New Zealand Government announced that it had entered an agreement with China Southern Airlines to allow the fast-tracking of visa applications for Chinese citizens which are gold and silver card holders in the airline´s loyalty scheme. As a result of the agreement, China Southern Airlines´ gold and silver frequent flyer card holders need not produce evidence of sufficient funds to support themselves when entering New Zealand, as long as they can demonstrate their flight records over the previous two years. During 2012, the government was considering extending this agreement to other airlines, primarily Air New Zealand.

Increasing capacity by China Southern Airlines is expected to boost growth in the number of inbound arrivals from China in New Zealand over the forecast period. Furthermore, Air New Zealand is expected to continue capitalising on the hype surrounding The Hobbit film trilogy, working in conjunction with Tourism New Zealand in the development and execution of its 100% Middle Earth travel and tourism promotional campaign. In addition, cruise transportation is expected to become a more important category in other transportation in New Zealand during the forecast period, with larger cruise ships likely to visit New Zealand´s main ports.

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