Air New Zealand Set To Face More Trans Pacific Competition: Many US Airliners Eyeing Auckland Route

The current monopoly enjoyed by Air New Zealand in the non-stop flights between New Zealand and mainland North America will soon come under stress as many American carriers are reportedly eyeing to launch services between Auckland and California.

Air New Zealand had a monopoly after Qantas Airways abandoned the then loss-making Auckland-Los Angeles route in 2012. The exit of Qantas made Air NZ comfortable as the sole carrier offering trans-Pacific flights from Auckland to Los Angeles, San Francisco and Vancouver ever since, reports Stuff.Co.Nz.

Renewed Interest

In fact, one reason for Air NZ's long-haul division returning to profit in 2013, after a long period of losses, was the absence of competition on the trans-Pacific route. According to industry sources, United Airlines is exploring the potential of the Auckland-San Francisco route to fly its Boeing 787 and American Airlines is looking at the Auckland-Los Angeles route with more interest. Auckland Airport also confirmed that it is in discussion with a number of international airlines for operating flights to Auckland.

Welcoming more competition, Air NZ chief executive Christopher Luxon said, "We are pretty prepared for that. I think with our financial position is so strong and we feel comfortable about our ability to respond to any competition." Recently, Air NZ increased the number of flights to Los Angeles to three and is examining the possibility of adding one more destination in the mainland U.S. The added capacity of Air NZ can also deter possible rivals as an entry barrier.

Qantas Keen on JV

However, Qantas is not interested in restarting Auckland-Los Angeles flight, but is not averse to grow in the New Zealand market by partnering in a joint venture. For Qantas, the prospect of its partner American Airlines entering the route will be appealing. "It is an extremely important market for us, the New Zealand market," remarked Qantas chief executive Alan Joyce.

Brilliant Marketing

Meanwhile, Air New Zealand is getting kudos for its marketing efforts. Unlike the popular safety videos of many airline brands that are popular on social media, the Air New Zealand’s Sports Illustrated Hobbits safety video has stood out, with a few even calling it sexist.

It kept Air New Zealand’s brand name in the press and generated a conversation about its other videos as well. “Our first quirky safety video was our Bare Essentials of Safety video released in 2009 which featured body painted staff from across our business. We wanted to do something different that would create interest and attention,” noted Kelly Kilgour, Corporate Communications Executive of Air New Zealand.

Air New Zealand’s in-flight safety videos are noted for its unique and impactful ways in sharing safety messages that is at once entertaining and instructional. The Air NZ safety videos have been viewed more than 50 million times online and they also got featured in global media outlets such as CNN, BBC and the New York Times.

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