Air New Zealand has carried out a sweeping review of its capacity and costs. the result is a plan to defer aircraft deliveries.
The airline conducted a review after poor earnings forecasts were released in its financial results at the end of January. The airline is expecting to make a profit but it’s seeing a marked shift in the overall demand from passengers.
The recent appalling terror attack in Christchurch is said to have caused a sharp decline in forward bookings, a common phenomena following such events.
The airline is planning on cutting US$510m in capital spending which will see a sharp reduction in the number of A320Neo’s being delivered. A US$60m cost cutting programme over 2 years is also being implemented.
Regardless, the airline is still planning on making an order for new widebody aircraft to replace its 777-200 fleet, but will spread them out over a longer period, aiming to have all of them in service by 2028.
The airline remains on schedule to take delivery of a leased 787-9, its fourteenth, in October.
Seven of the A320neos were to be delivered, which will be reduced to four with three put off for a tear to the end of 2021. It hopes to cut capacity by 3-7% depending on routes.
They airline also announced its plan to improve its business class offering and increase the leg room in economy by the end of 2020, with a new cabin design in the next generation of long haul aircraft from 2023.
The airline also announced that all international flights would get free wi-fi.
A number of changed and upgraded routes were also announced, with schedule modifications on Hong Kong flights, a deal with Asiana on the Seoul (S. Korea) route and improved capacity on higher demand routes like Taipei.