Air New Zealand will launch a non-stop service between Auckland and New York from October 2020 using its 787-9 Dreamliner– but in the same month, a year from now, it will end its daily Los Angeles-London service, with the loss of up to 155 London-based jobs.
The New Zealand carrier said its decision was “to direct capacity to faster-growing markets” and described withdrawal from London as a “difficult decision”.
Air New Zealand told its frequent flyers that the number of ways to fly between Auckland and London had more than doubled in the past decade and this had changed travel preferences.
“Less than 7% of all airline travellers between Auckland and London chose to fly via Los Angeles last year. The Atlantic has also become one of the most hotly contested routes in the world and we lack the market advantages and scale of the European and North American airlines.
“Looking ahead, we expect North America to continue to be New Zealand’s fastest growing visitor market. This network reset puts us in the best position to take advantage of this while opening up the Big Apple for our customers.”
The carrier said its London service “has been a flagship route for Air New Zealand since it began in 1982 and it holds special memories for many of us. However, dynamics have changed in recent years.”
“Air New Zealand is strongest when operating direct flights to and from our home base and this reset will put us in the best possible position to take advantage of increasing demand across the Pacific Rim,” said Air New Zealand acting chief executive, Jeff McDowall.
“Visitor growth to New Zealand is strongest from North America and performance of our new service to Chicago is exceeding expectations. New York has been an aspiration for Air New Zealand for some time and withdrawal from the Atlantic will free up aircraft capacity to make this milestone a reality.”
Air New Zealand will fly between Auckland and its alliance partner United Airlines’ New York hub Newark Liberty International Airport three times weekly, year-round, using its latest configuration Boeing 787-9 aircraft.
Tickets for Air New Zealand’s New York service will go on sale soon, subject to regulatory approvals and landing slot confirmation.
McDowall said the hardest aspect of the decision is the impact on Air New Zealand’s Britain-based staff “who’ve worked incredibly hard to build the route and to achieve the highest customer satisfaction levels across the airline’s international network.
“Sadly, the withdrawal will see the disestablishment of our London cabin crew base of around 130 people and, subject to consultation, around 25 roles in our Hammersmith sales office and ground team. We will be working with our people and their union to help with the next steps in their career, including looking at opportunities in other areas of the airline.”
Los Angeles-London will operate as scheduled until October 2020 and no tickets have been sold beyond this date. Air New Zealand has chosen to announce the withdrawal more than a year in advance to allow time to support its people and to avoid any impact to customers booked to travel.
Europe, including the UK, remains a significant sales region for Air New Zealand. Currently more than two thirds of revenue generated by its London team is unrelated to the Atlantic route and the airline will retain a sales, marketing and cargo presence in London to serve this important market, including after the cessation of its Los Angeles-London service.
“We fully expect customers will want to take advantage of the many connection options on our partner networks through Air New Zealand’s gateways in Asia and the Americas, including New York. It’s important to us that customers continue to enjoy a seamless journey, and we’ll be working closely with our partners to ensure the best experience and benefits for travellers,” McDowall said.
Air New Zealand has pointed out that from October 2020, Air New Zealand customers will be able to travel year-round between Auckland and London with partner airlines via 12 gateways in Asia and the Americas, including New York.
Air New Zealand will operate its 787-9 ‘Code 2’ aircraft to New York. This aircraft has a 275-seat configuration with a higher proportion of Business Premier and Premium Economy seating. With a flight time of 15hr 40m northbound and 17hr 40m southbound, the 14,178-kilometre route will be Air New Zealand’s longest and the fifth longest in the world by distance.
The New York operation is subject to final regulatory approvals and crewing agreements.
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