news update… Air New Zealand profits down by 61%

Written by Your VIPTRIP Team on February 24th, 2012

24 February 2012.  News reports state that Air New Zealand has announced a big slump in profits and warned that it is cutting more than 400 jobs. Some staff will be made redundant, others will not be replaced when they leave, and more will not get their contracts renewed. The airline’s six month net profit, after tax, was down by 61 percent to $38 million. One contributing factors for deepening financial problems and profit loss might be the lack of cooperation with local travel agents (zero commission policy plus additional fees)

The Market says Rob Fyfe has failed” So the departing CEO of Air New Zealand Ltd [AIR.NZX] is leaving his post at the end of 2012 and being lauded by some as a  “rockstar” CEO and the saviour of an airline. According to the market though he is not. If we look at the 7 year chart below – the length of time Mr Fyfe has been with AIR NZ –  we can see that the share price has kamakazied to half the value it was when he took over in 2005.
It is paying the price of high fuel costs and weak demand in international markets like Japan and Europe. Air New Zealand chairman John Palmer says he is not happy about the situation. “The result we are delivering today is a very disappointing one.” The weak global economy means there is little room to raise ticket prices so instead costs and jobs must be cut, Air New Zealand chief executive Rob Fyfe says.   source external news media

 
Source Air New Zealand: Air New Zealand has been named ‘International Airline of the Year’ in the inaugural Roy Morgan Customer Satisfaction Awards ? in Australia.

Roy Morgan surveyed nearly 4,000 people who’d used an international airline in the previous 12 months and Air Zealand was rated the Best International Airline for customer satisfaction in 2011, winning more months than any other airline throughout the year. Air New Zealand’s average satisfaction rating for the year was 89%.

Air New Zealand General Manager Australia Cam Wallace, says winning the International Airline of the Year category in Roy Morgan’s first Australian Customer Satisfaction Awards is a great honour.

“For years we’ve pursued a strategy that recognises that our people rather than planes are our most valuable asset and it’s really pleasing to see that acknowledged by the people who fly with us.”

Mr Wallace said the award reflected Air New Zealand’s commitment to delivering customers a uniquely Kiwi experience in what is one of the world’s most competitive industries.

“We believe the ability of our people to adapt quickly to changing customer expectations, new competitors and uncertain economic conditions has enabled Air New Zealand to outperform most of our peers in terms of the genuine service we deliver to our Australian passengers and those around the globe.

Last year Air New Zealand won more than 25 awards across the business – recognising such diverse areas as innovation, in-flight product, design, brand and marketing strength and customer service.

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