Latest / Early Edition with Ryan Bridge / Cath O'Brien: Board of Airline Representatives Executive Director on the state of Air New Zealand

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Cath O'Brien: Board of Airline Representatives Executive Director on the state of Air New Zealand · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: In New Zealand turbulence for them, So steering down the
• 0:02
  Speaker 1: barrel of a loss of four hundred million dollars this year.
• 0:05
  Speaker 1: That is pre tax, This is a round, this is
• 0:08
  Speaker 1: fuel costs. They're jumping up, and they're jumping up quite
• 0:11
  Speaker 1: quickly too.
• 0:13
  Speaker 2: There are markets inbound markets out of the United States,
• 0:17
  Speaker 2: SUDA Asia that are indeed performing well. So where we
• 0:20
  Speaker 2: can recover some of the fuel price increases by putting
• 0:24
  Speaker 2: price up, we will, but we're very thoughtful about it
• 0:27
  Speaker 2: and it's not one size fits all. We're heading what
• 0:29
  Speaker 2: we call elasticity limits, where our customers can't afford to
• 0:34
  Speaker 2: pay anymore.
• 0:36
  Speaker 1: Joining me this morning is Cath O'Brien Bordeville, unrepresented as
• 0:39
  Speaker 1: executive director. Good morning Cath, Good morning Ryan. So can't
• 0:44
  Speaker 1: really push the price too much, especially on domestic routes.
• 0:47
  Speaker 1: Does that mean we were likely to see changes more
• 0:49
  Speaker 1: to the internationals.
• 0:51
  Speaker 3: Well, I think all airlines have to obviously respond to
• 0:54
  Speaker 3: the scenarios that they're facing. So yes, that does include
• 0:58
  Speaker 3: some price increases. But yes, you know, all airlines know
• 1:02
  Speaker 3: that that there are limits to what customers will pay.
• 1:05
  Speaker 3: So that's only one lever that we used to respond.
• 1:08
  Speaker 1: Why is in New Zealand in such a worse position
• 1:10
  Speaker 1: than other airlines around the world, including quantas well.
• 1:13
  Speaker 3: I think all airlines around the world are having to
• 1:16
  Speaker 3: respond to the situation that we find ourselves in. And
• 1:19
  Speaker 3: I'd say that response to this has been swift and
• 1:23
  Speaker 3: generally speaking across all airlines efficient. You know, we've seen
• 1:28
  Speaker 3: airlines respond with root clock consolidation. They've looked to the
• 1:30
  Speaker 3: cost savings. Yes, there's been some price increases, you know,
• 1:33
  Speaker 3: but as you said, you know, demand for tourism remains strong.
• 1:38
  Speaker 3: You know, New Zealand has seen that, you know against
• 1:41
  Speaker 3: March twenty twenty six against March twenty twenty five, you know,
• 1:44
  Speaker 3: up nine point two percent on prior year, really strong
• 1:47
  Speaker 3: visitation from the US, from China, from Australia, especially into
• 1:51
  Speaker 3: our South Island ports. And I think that that strong
• 1:54
  Speaker 3: demand for travel, incredibly resilient demand, does put airlines in
• 1:59
  Speaker 3: quite go place to continue.
• 2:01
  Speaker 1: And yet they were protecting to make a loss before
• 2:04
  Speaker 1: a run, you know, like why what why is air
• 2:07
  Speaker 1: New Zealand not taking advantage? Why is a Quantus and
• 2:11
  Speaker 1: Jet start getting the jump even and domestically.
• 2:14
  Speaker 3: Well, I think if you stand back, you have to
• 2:17
  Speaker 3: say that that airlines, you know, have different market positions
• 2:21
  Speaker 3: just as a basis, and and you know New Zealand
• 2:25
  Speaker 3: is a much much smaller market than the than the
• 2:27
  Speaker 3: Australian market. That market can stand you know, a premium
• 2:31
  Speaker 3: carrier and a low cost carrier operating in that very
• 2:34
  Speaker 3: large market. You know, you must remember that Sydney has
• 2:37
  Speaker 3: five million people and New Zealand has five million people.
• 2:40
  Speaker 3: It is not a level playing field to compare those
• 2:43
  Speaker 3: two states.
• 2:44
  Speaker 1: Are you saying we're not big enough to sustain two airlines.
• 2:48
  Speaker 3: I'm saying that that we have not got you know,
• 2:52
  Speaker 3: that same basis to sustain demand generally. You know we're
• 2:58
  Speaker 3: not We're not as big. It's just just facts. But
• 3:01
  Speaker 3: you know that's where international tourism becomes so important, and
• 3:04
  Speaker 3: what we can see from the data is that that
• 3:07
  Speaker 3: is just so strong.
• 3:09
  Speaker 1: Appreciate your time this morning, Kath Katho Brian, Board of
• 3:12
  Speaker 1: Airline Representatives Executive director.
• 3:15
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• 3:18
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• 3:21
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