History of Air New Zealand
Encyclopedia
The history of Air New Zealand, the national carrier of New Zealand
, began when the amalgamated East Coast Airways and Cook Strait Airways began operations in January 1936 as Union Airways of N.Z. Ltd
, the country's first major airline. Union Airways was the sole New Zealand aviation partner in Tasman Empire Airways Limited (TEAL)
, which made its inaugural flight in 1940. The New Zealand Government bought full ownership of TEAL in 1961 and the airline was renamed Air New Zealand in 1965. New Zealand's domestic airline, National Airways Corporation (NAC), was merged with Air New Zealand in 1978. Air New Zealand was privatised in 1989 but in the early 2000s it got in financial trouble and in 2001 the New Zealand Government took up 80% ownership in return for injecting NZ$885M.
The airline was established as TEAL (Tasman Empire Airways Limited) on 26 April 1940. Its first flight was on 30 April 1940, with Short Empire
flying boat ZK-AMA Aotearoa
carrying ten passengers from Auckland
to Sydney
. It took around 7 hours 30 minutes to travel the 1345 miles. TEAL's first annual report, dated 31 March 1941, revealed that 130 trans-Tasman flights had been completed, 174,200 miles flown and 1461 passengers carried, with a profit of NZ£31,479. During WW2
TEAL undertook several special charter and reconnaissance flights to New Caledonia
, Fiji
, Tonga
, Samoa
and Hawaii
to assist the war effort. In June 1944 TEAL crossed the Tasman Sea
for the 1000th time.
After World War II TEAL re-equipped, initially with Short Sandringham
and later with Short Solent
flying boats, and a former RNZAF
PBY Catalina
also being used for survey flights. TEAL's initial schedule of two weekly flights from Auckland to Sydney was soon expanded with departures from Wellington
, and flights to Fiji were also added during the early years.
In 1953 the Australia
n Government bought 50% of TEAL, with the New Zealand Government buying the rest. In 1954 TEAL added Douglas DC-6
s from the defunct British Commonwealth Pacific Airlines
(BCPA) to its fleet, and these replaced the outdated flying boat
s on most international services. The flying boat services ended in 1960 when Tahiti's airport opened. TEAL operated services between Auckland and Fiji to replace BCPA's service. In 1955 TEAL made its 10,000th trans-Tasman crossing. In 1959 TEAL again changed its fleet, replacing the DC6s with Lockheed L-188 Electra
IIs. The turboprop aircraft was capable of carrying 71 passengers at nearly 400 miles per hour, and reduced the Auckland to Sydney flying time to 3 hours 50 minutes.
In 1961 the New Zealand Government bought the Australian Government's half share, and on 1 April 1965 the airline was renamed Air New Zealand.
jet airliners. The first DC-8 arrived at Auckland on 20 July 1965, coinciding with the official opening of Air New Zealand's jet base at the airport. The remaining two DC-8s arrived on 12 August and 22 September of that year and the inaugural jet service was a flight from Christchurch to Sydney on 3 October. The increased range of the jets enabled Air New Zealand to commence services to the United States
and Asia for the first time — on 14 December the first Auckland
to Los Angeles
service took off, via Nadi
and Honolulu. Services from Auckland to Hong Kong
via Manila
and Singapore
followed in early 1966. A service to Tokyo
via Nadi started in 1980.
Early in 1968 a further two DC-8-52s were ordered, with the first arriving on 29 January and the second on 28 February; these two aircraft had the same seating configurations as the earlier planes but were powered by slightly more powerful engines. A sixth DC-8 was leased from United Airlines
in November 1970, and later purchased in July 1971. A seventh and final DC-8 was also purchased from United Airlines, this one in October 1971.
Having initially considering purchasing either the DC-8 Super Sixties or the Lockheed L-1011
, Air New Zealand ordered eight DC-10-30
s, the first of which arrived on 27 January 1973. The DC-10s also introduced a new paint scheme, with a koru
featuring on the tail in the style of a Maori waka
(canoe) stern post instead of the previously displayed Southern Cross; this scheme was gradually introduced onto the DC-8s during 1973. The DC-10 opened up new routes to Asia as well as expanding trans-Pacific services.
In 1979, the crash of American Airlines Flight 191
led to a temporary global grounding of all DC-10s, stranding hundreds of passengers on both sides of Air New Zealand's Los Angeles–Auckland route. The airline chartered a Pan Am Boeing 747
to transport stranded passengers and to keep a shuttle service open. The airline's last remaining two DC-8s maintained a trans-tasman shuttle service along with its single international standard equipped 737-200, ZK-NAR. The decision not to take up NAC's purchase rights of the trans-tasman capable Boeing 727-200 had come back to haunt the airline. With no DC-8 replacement in sight, Air New Zealand begain the study of finding a mid-sized wide bodied jet, resulting in the ordering of the Boeing 767-200ER in 1983.
In 1947 a domestic competitor appeared in the form of the Government-owned National Airways Corporation (NAC), formed when the New Zealand government nationalised
Union Airways and a number of other smaller operators. NAC was initially equipped with de Havilland Dragon Rapide
s, de Havilland Fox Moth
s, Douglas DC-3
s, Lockheed Electra
s and Lockheed Super Electra
s. In the late 1940s NAC also provided international services to nearby South Pacific
countries using converted ex-RNZAF Short Sunderland
s. These were later supplemented by de Havilland Heron
s, Vickers Viscount
s, Fokker Friendship
s and ultimately Boeing 737
s. In 1972 NAC purchased a freight subsidiary, Straits Air Freight Express
, which operated Bristol Freighter
s and Armstrong Whitworth AW.660 Argosy
freighters.
On 1 April 1978 the domestic airline NAC was absorbed into Air New Zealand. Although both airlines had worked closer together during the 1970s, sharing aircraft etc., it was felt that NAC was threatening the airline. Qantas
was feeling out a domestic partner in New Zealand and had NAC in its sights. When NAC announced plans to purchase the Boeing 727-200 to increase capacity, and wanted to reapply for some of its Pacific Island routes, Air New Zealand objected and applied pressure to the New Zealand Government that one airline would best serve the nation's interest. The relaunched Air New Zealand used the NAC NZ prefix for domestic flight numbers and the Air New Zealand TEAL
TE prefix for international flights until October 1990, when NZ became universal. The order for the Boeing 727-200s was stopped, and Air New Zealand decided to instead purchase more Boeing 737-200
s. It was a decision that would come back to haunt the airline as it would not have a mid-sized aircraft to support the DC-10s when the last DC-8s were due to retire in 1981.
. The McDonnell Douglas DC-10-30
disintegrated on impact killing all 237 passengers aboard as well as the 20 crewmembers. This remains New Zealand's deadliest disaster.
. The DC-10s were leased out, the last service being in 1983, and all were sold by the end of 1986.
In 1981, Air New Zealand ordered its first wide-bodied Boeing type; the Boeing 747-219
was delivered, starting the replacement of the DC-10s.
In 1982 the first Air New Zealand flight to London
in its own right (via Papeete
and Los Angeles
) took place. Air New Zealand was now a global airline.
In 1985, the first Boeing 767-200
were delivered. This type filled in the medium range and payload gap vacated by the DC-8 and DC-10s. This allowed the airline to service the trans-Tasman route with a more intensive frequency to the major capitals not allowed by the larger Boeing 747s. Services to Perth were also inaugurated and the type still serves this route with the Boeing 767-300
ER. The Boeing 767 also became the aircraft used for main trunk domestic services.
Air New Zealand, along with Qantas
helped to pioneer Extended range, Twin engine, Operations ETOPS. This allowed the safe use of the efficient Boeing 767 type over long range water routes. Originally this was set at two hours distance to the nearest landfall capable airport but this soon extended to three and even four hours. It should be noted that the ETOPS rating is applied to individual aircraft, not the type in general. Today all twin engine commercial types are capable of being rated to ETOPS standard, usually as part of a 'new aircraft' program such as the Embraer E-190.
public, staff, and institutional investors — Qantas
with 19.9%, Japan Airlines
7.5%, American Airlines
7.5%, and a New Zealand Government "Kiwi
share" made up the balance. The Kiwi share has special powers to ensure that the majority shareholding is held by New Zealanders. In the same year Air New Zealand listed on the New Zealand Stock Exchange.
was delivered, but industrial action by pilots and cabin crew forced the first aircraft to be leased to Cathay Pacific
. Rates of pay and long hours in the air due to its then excellent range had to be re-negotiated before the airliner entered mainline service. The first flight finally took place in late 1990.
Also in 1991 it received its first Boeing 767-300
, a major improvement to and supplementing the seven Boeing 767-200ERs then in service. The 767-300ER variant gained in range and capacity and allowed Air New Zealand to open new routes into Asia and increase frequency to the trans-Pacific service and introducing a second daily Los Angeles service via Honolulu and later a third via Rarotonga and Apia on alternating days. The Boeing 767-300ERs are retrofitted with winglets to improve on more efficiencies this airliner has to offer. Although the Boeing 767 fleet has been reduced due to the arrival of the Boeing 777-200ER, the Boeing 787-9 is to replace the last of the type from 2013.
The early 1990s saw new routes added:
government announced that it would allow New Zealand carriers unlimited access to the Australian market. Air New Zealand immediately planned to operate frequent services between the major Australian cities. However, at the last minute the Australian Transport Minister backed out of the deal, and although Air New Zealand was allocated an increased number of international departure slots from Australian cities, it was not permitted to operate domestically within Australia. This had far-reaching implications, as Air New Zealand was forced to look at other ways of increasing its market in Australia, which resulted in the acquisition of Ansett Australia
.
In 1995 Air New Zealand added Fukuoka
to its Japanese destinations, and announced its long-standing plan to buy 50% of Ansett Airlines, a significantly larger company than Air New Zealand itself. Owned 50% by TNT and 50% by News Limited
, Ansett held close to half of the large Australian domestic market, but had been declining for some years. Market analysts reported that Ansett had under-performing major assets and an ageing fleet, and needed a capital injection of at least A$300 million to shore up its weak balance sheet.
For Air New Zealand, purchasing TNT's half of Ansett represented a way to buy into the rich Australian domestic market. The deal had been under discussion with both of Ansett's owners since October 1994, and required some complex manoeuvring to meet regulatory requirements on both sides of the Tasman, including the sale of Ansett New Zealand
, Air New Zealand's only significant home market competitor (to News Limited) to satisfy New Zealand Commerce Commission requirements, and the sale of 51% of Ansett International (to a consortium of Australian institutional investors) to satisfy Australian Foreign Investment Review Board requirements that, if not met, would have meant the loss of Ansett International's bilateral air service agreement rights. The terms of the agreement saw Air New Zealand pay A$475 million for half of Ansett, including a A$150 million capital injection, and the transaction was completed on 1 October 1996.
A low-cost subsidiary, Freedom Air
, began operations in 1996. In 1997 South Korea
n flights were suspended because of the Asian financial crisis, and a small partnership was formed with United Airlines
. In 1998 EVA Air
and Air New Zealand jointly started operating Boeing 767
services between Taipei and Auckland. In addition, Air New Zealand received three new Boeing Boeing 737-300
s to operate on flights between New Zealand and Australia.
During 1998 the company started selling all five of its Boeing 747-200 aircraft to Virgin Atlantic
, with these being disposed of during 1999 and 2000. Sir Selwyn Cushing became the company's chairman after Bob Matthew stepped down, and also in 1998 Air New Zealand announced alliances with various airlines and the intent to become a member of the Star Alliance
in 1999.
1999 saw all five weekly services to Tokyo
operated by Boeing 747-400s and an additional 747 arrived in Auckland. At the end of the year, Air New Zealand and United filed for anti-trust immunity with the United States Department of Transportation
because of the two companies' alliance agreements.
members. 1999 also saw the start of a long and confusing battle over ownership of Ansett. Ansett remained profitable but was having increasing difficulty in finding a way to rationalise its cost structure, and badly needed a capital injection to replace its elderly fleet. Of the two half owners, News Limited was more interested in selling out and investing the proceeds in other industries, while Air New Zealand did not have the funds to spare: with 102 aircraft, nearly 15,000 staff and a turnover of US$2.3 billion (compared with Air New Zealand's 72 aircraft, 9,200 staff and US$1.8 billion turnover) Ansett's need for capital was greater than Air New Zealand's ability to provide it—particularly given the age of Air New Zealand's own fleet.
Singapore Airlines
(SIA) and Qantas
expressed an interest in buying Air New Zealand, Ansett employees planned a staff buy-out, and both SIA and Air New Zealand looked at buying News Limited's 50% share of Ansett. In March 1999 SIA made a formal offer of A$500 million for a half share. Given SIA's industry-leading status, ability to fund Ansett's re-equipment and expansion and global marketing network, industry observers were enthusiastic about the move. However as part of its original deal to buy TNT's half of Ansett, Air New Zealand had a pre-emptive right to News Limited's half, provided only that it matched or bettered other offers.
The Air New Zealand board eventually approved the sale to SIA, but negotiations stalled when major Air New Zealand shareholder Brierley Investments began buying more Air New Zealand shares and attempting to get SIA to buy Ansett through either Air New Zealand or Brierley, rather than from News Limited. In June, News Limited withdrew the offer to sell, citing "not yet resolved issues" between SIA and Air New Zealand.
At this stage, Ansett announced an unexpectedly high profit for the year—A$149 million—and News Limited took advantage of that to raise the asking price to A$1 billion. Industry analysts regarded this as far too optimistic in the notoriously boom and bust airline business, and put the true value of a half share at no more than A$700 million.
In February 2000 Air New Zealand announced its decision: it would buy the remaining half of Ansett for A$680 million. Industry observers were united in the belief that it was a bad decision: the price was probably too high, and Air New Zealand would not be able to fund the badly needed re-equipment. Monash University aviation economics academic Keith Trace commented "... by taking it on, they ensured that their own airline was in terrible danger. That was a dreadful mistake. They were taken for a ride."
Former Qantas chief financial officer Australian Gary Toomey was appointed Chief Executive Officer of both Air New Zealand and Ansett Holdings in December 2000. Services to Frankfurt
and Honolulu from Los Angeles
were dropped, and were taken on by Star Alliance partners Lufthansa
and United.
In 2001 Air New Zealand announced plans to buy 16 new Beechcraft
1900D
aircraft to replace its Bandeirantes
and Metroliner
s, which had served faithfully for 20 years, servicing airports without jet capability.
Ansett was in poor shape. Lack of proper maintenance to its 767
fleet—some of which were almost 20 years old—had seen the Australian Civil Aviation Safety Authority
(CASA) ground seven aircraft two days before Christmas 2000 while inspections were carried out. In April 2001, one day before the busy Easter holiday period, all 10 Ansett 767s were grounded again when a series of other safety problems came to light, and Ansett was threatened with withdrawal of its Air Operator's Certificate.
To cover the loss of one third of Ansett's capacity, Air New Zealand chartered Ansett a Boeing 767 and a Boeing 747 from its own fleet, and additional aircraft were chartered from SIA, Air Canada
, and Emirates Airline
. SIA—25% owner of Air New Zealand and thus indirectly of Ansett—agreed to provide technical assistance to get the Boeing 767s back into the air.
Despite the great loss of public confidence in the airline, the news was not all bad. Chief executive Gary Toomey announced that the total cost of the groundings was only NZ$5.2 million, and that the seven oldest Ansett Boeing 767s would be sold, along with three of Air New Zealand's 767s, and newer aircraft leased in their place. Toomey said:
The reality was rather different. In revenue terms, Air New Zealand was the 39th largest airline in the world, Ansett 32nd. However, both airlines were only marginally profitable and needed a substantial capital injection that neither was able to provide. The larger very successful airlines Qantas and SIA both made offers to buy the Air New Zealand group but needed regulatory approval to lift the 25% foreign ownership rule. The Clark
government refused to make a decision. Deputy Prime Minister Jim Anderton said "the idea of selling our national airline to anyone would be an anathema", even though Air New Zealand was at that time already 49.9% foreign-owned: 25% by Singapore Airlines, and 24.9% by Brierley Investments, which was originally a New Zealand-based concern but had relocated to Singapore in 2000, and circumvented the foreign ownership restrictions by using a New Zealand-based trust to hold its Air New Zealand shares.
The inconsistencies of national pride were not confined to the eastern side of the Tasman: public opinion polls showed that while New Zealanders were strongly opposed to Qantas buying into Air New Zealand, and moderately opposed to SIA increasing its stake, Australians were in favour of a Qantas buy-out of Air New Zealand but objected to any further SIA ownership of Air New Zealand (and thus Ansett)..
Meanwhile, Air New Zealand's financial position was deteriorating, and Ansett was losing market share to both Qantas and a new entrant on the Australian domestic market, Virgin Blue. The Air New Zealand board decided that the answer was to spend still more money, and buy Virgin Blue as well as Ansett. On condition that that deal went through, SIA was prepared to fund the purchase of 32 new aircraft for the Air New Zealand group. Virgin Blue, however, was growing fast, largely at the expense of Ansett; the initial A$120 million offer was deemed insufficient and in August Virgin Blue owner Sir Richard Branson, with his customary gift for publicity, put an end to negotiations when he tore up on television what he claimed was a A$250 million Air New Zealand cheque. Although the offer may have been geniune the cheque was not - it was actually a cheque from a book of one of the airport managers drawn on a Qantas' staff credit union account.
On 10 September 2001, in desperation Air New Zealand offered to sell Ansett to Qantas for $1. After two days' consideration Qantas declined, and Air New Zealand suspended trading in its shares (which had already dropped enormously) and placed Ansett in voluntary administration. Ansett was bankrupt, and Air New Zealand was in barely better shape. The following day Air New Zealand announced a staggering NZ$1,425 million loss: a NZ$1,321 million write-off of Ansett, and another NZ$104 million lost by Air New Zealand itself.
Ansett's trading loss for the year had been NZ$165 million (plus another NZ$23 million for Ansett International), or about NZ$8 million a month for most of the year, but with a sudden blow-out to around NZ$40 million a month for the last two months.
A storm of public criticism on both sides of the Tasman erupted, and bitter accusations were levelled. In particular, it was asked how such massive losses were possible when Ansett had a healthy 74% average load factor.
In an angry statement, Air New Zealand denied that there had been a programme of last-minute asset-stripping, that it had put A$200 million of Air New Zealand fuel bills through Ansett, cleaned out Ansett's bank accounts, or taken Ansett engines and spare parts to New Zealand. Ansett's administrators subsequently verified there had been no last-minute asset-stripping, but many refused to let facts get in the way, as Air New Zealand workers in Australia were abused and spat on.
The trans-Tasman anger was enormous. At one stage, New Zealand Prime Minister Helen Clark, on her way back to New Zealand from the Middle East, found her aircraft blockaded on the Melbourne
airport tarmac by laid-off Ansett workers, who refused to allow the jet to take off. Eventually, an RNZAF Orion maritime reconnaissance aircraft had to be sent to fetch her.
The Australian Securities and Investment Commission (ASIC) began an investigation of whether Ansett had gone on trading while insolvent, and eventually determined in July 2002 that it would be too expensive and difficult to proceed with an action which would, in any case, need to be many separate actions on behalf of individual creditors rather than just one.
It later became clear from the release of documents under the New Zealand Official Information Act that the New Zealand Government had pressured the Australian Government not to support legal action against Air New Zealand, saying that this would "prejudice rather than progress the interests of those with financial claims against the company". The Australian government stated that the pressure had no effect on its decisions.
New Zealand media criticised Australian media for "Kiwi bashing", contrasting poor coverage of instances of Australian protectionism and criticising pressure for New Zealand taxpayers to prop up the uncompetitive Australian business.
Laid-off Ansett workers were eventually paid most of their entitlements, partly from an A$150 million compensation package offered by Air New Zealand in return for having the ASIC enquiry dropped, but mostly by an A$10-per-seat levy imposed by John Howard
's government on Australian airline passengers.
In early 2002 Ralph Norris
, formerly head of ASB Bank
, one of New Zealand's main banks, was announced as the new CEO of Air New Zealand, and commenced the difficult task of pulling the airline back from near-death.
In mid 2002 Air New Zealand announced it would reconfigure its domestic operations as a lower-cost airline, doing away with business class and meals on most domestic flights, the longest of which was 1 hour 50 minutes. The airline justified this new style of service (known as Express Class) on the basis that few people traveled business class and that travellers would rather save the money on airline ticket costs than pay extra for a meal. Although the company had had online bookings for several years, it made internet sales its primary sales medium, abolished travel agents' commissions and added fees for agent, telephone and counter sales. The approach was an outstanding success, with a huge increase in internet bookings being recorded once the new fare structure was introduced, and domestic bookings eventually increasing by 23% on average. During July 2002, the airline announced an order for 15 Airbus
A320-200
aircraft, to replace Boeing 737-300
and Boeing 767-200
aircraft then in use on the Tasman. Five of these would be purchased by the airline, whilst the other ten were to be leased.
In late 2002 the New Zealand Government agreed in principle to allow Qantas
to purchase a 22.5% shareholding at a cost of NZ$550 million; the purchase being subject to regulatory approval in both Australia and New Zealand. However, this proposal was met with resistance from the regulatory bodies in both countries — despite industry experts such as IATA head Giovanni Bisignani calling their opposition "misguided" and suggesting that the proposed alliance was a model example of the only possible method of survival for smaller airlines. In late 2003 the Australian and New Zealand regulatory bodies both rejected the alliance as being anti-competitive, despite a worldwide trend for airlines to consolidate (such as the 2003 acquisition of KLM by Air France
). Air New Zealand and Qantas both announced they would appeal the decisions.
In November 2003 Air New Zealand extended the successful low-cost domestic Express concept to trans-Tasman routes. Early indications are that this move has also proved successful, with an estimated 10% increase of bookings in the first few months of operation. On 30 June 2004 the airline commenced non-stop services from Auckland
to San Francisco, the first new international destination for eight years. In September 2004 Air New Zealand was named Best Long Haul Airline in the seventh annual Conde Nast Traveller
UK Readers' Awards.
On 20 September 2004 the New Zealand High Court blocked Qantas' plan to buy 22% of Air New Zealand. Qantas and Air New Zealand decided not to lodge an appeal. However, both Ralph Norris
and his counterpart at Qantas, Geoff Dixon
, have stated that the airlines will continue to assess other forms of cooperation that will not conflict with competition regulations. In October 2004 SIA sold its remaining stake in Air New Zealand.
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, began when the amalgamated East Coast Airways and Cook Strait Airways began operations in January 1936 as Union Airways of N.Z. Ltd
Union Airways of N.Z. Ltd
Union Airways of N.Z. Ltd was New Zealand's first major airline.-History:The Union Steamship Company took shares in East Coast Airways in 1934 and in Cook Strait Airways in 1935, and later that year amalgamated these into a new national airway, on 5 January 1936 opening services between Palmerston...
, the country's first major airline. Union Airways was the sole New Zealand aviation partner in Tasman Empire Airways Limited (TEAL)
TEAL
Tasman Empire Airways Limited was the forerunner of Air New Zealand. It was first registered in Wellington as a limited liability company on 26 April 1940....
, which made its inaugural flight in 1940. The New Zealand Government bought full ownership of TEAL in 1961 and the airline was renamed Air New Zealand in 1965. New Zealand's domestic airline, National Airways Corporation (NAC), was merged with Air New Zealand in 1978. Air New Zealand was privatised in 1989 but in the early 2000s it got in financial trouble and in 2001 the New Zealand Government took up 80% ownership in return for injecting NZ$885M.
Tasman Empire Airways Limited
Short Empire
The Short Empire was a passenger and mail carrying flying boat, of the 1930s and 1940s, that flew between Britain and British colonies in Africa, Asia and Australia...
flying boat ZK-AMA Aotearoa
Aotearoa
Aotearoa is the most widely known and accepted Māori name for New Zealand. It is used by both Māori and non-Māori, and is becoming increasingly widespread in the bilingual names of national organisations, such as the National Library of New Zealand / Te Puna Mātauranga o Aotearoa.-Translation:The...
carrying ten passengers from Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
to Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
. It took around 7 hours 30 minutes to travel the 1345 miles. TEAL's first annual report, dated 31 March 1941, revealed that 130 trans-Tasman flights had been completed, 174,200 miles flown and 1461 passengers carried, with a profit of NZ£31,479. During WW2
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
TEAL undertook several special charter and reconnaissance flights to New Caledonia
New Caledonia
New Caledonia is a special collectivity of France located in the southwest Pacific Ocean, east of Australia and about from Metropolitan France. The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Belep archipelago, the Isle of...
, Fiji
Fiji
Fiji , officially the Republic of Fiji , is an island nation in Melanesia in the South Pacific Ocean about northeast of New Zealand's North Island...
, Tonga
Tonga
Tonga, officially the Kingdom of Tonga , is a state and an archipelago in the South Pacific Ocean, comprising 176 islands scattered over of ocean in the South Pacific...
, Samoa
Samoa
Samoa , officially the Independent State of Samoa, formerly known as Western Samoa is a country encompassing the western part of the Samoan Islands in the South Pacific Ocean. It became independent from New Zealand in 1962. The two main islands of Samoa are Upolu and one of the biggest islands in...
and Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
to assist the war effort. In June 1944 TEAL crossed the Tasman Sea
Tasman Sea
The Tasman Sea is the large body of water between Australia and New Zealand, approximately across. It extends 2,800 km from north to south. It is a south-western segment of the South Pacific Ocean. The sea was named after the Dutch explorer Abel Janszoon Tasman, the first recorded European...
for the 1000th time.
After World War II TEAL re-equipped, initially with Short Sandringham
Short Sandringham
- External links :* -See also:-References:NotesBibliography* Jackson, A.J British Civil Aircraft since 1919 - Volume Three. London: Putnam & Company Ltd, 1974. ISBN 0-370-10014-X....
and later with Short Solent
Short Solent
- External links :* * *...
flying boats, and a former RNZAF
Royal New Zealand Air Force
The Royal New Zealand Air Force is the air arm of the New Zealand Defence Force...
PBY Catalina
PBY Catalina
The Consolidated PBY Catalina was an American flying boat of the 1930s and 1940s produced by Consolidated Aircraft. It was one of the most widely used multi-role aircraft of World War II. PBYs served with every branch of the United States Armed Forces and in the air forces and navies of many other...
also being used for survey flights. TEAL's initial schedule of two weekly flights from Auckland to Sydney was soon expanded with departures from Wellington
Wellington
Wellington is the capital city and third most populous urban area of New Zealand, although it is likely to have surpassed Christchurch due to the exodus following the Canterbury Earthquake. It is at the southwestern tip of the North Island, between Cook Strait and the Rimutaka Range...
, and flights to Fiji were also added during the early years.
In 1953 the Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n Government bought 50% of TEAL, with the New Zealand Government buying the rest. In 1954 TEAL added Douglas DC-6
Douglas DC-6
The Douglas DC-6 is a piston-powered airliner and transport aircraft built by the Douglas Aircraft Company from 1946 to 1958. Originally intended as a military transport near the end of World War II, it was reworked after the war to compete with the Lockheed Constellation in the long-range...
s from the defunct British Commonwealth Pacific Airlines
British Commonwealth Pacific Airlines
British Commonwealth Pacific Airlines or BCPA, was an airline registered in New South Wales, Australia in June 1946 with headquarters in Sydney. It was formed by the governments of Australia , New Zealand and the United Kingdom to pursue trans-Pacific flights...
(BCPA) to its fleet, and these replaced the outdated flying boat
Flying boat
A flying boat is a fixed-winged seaplane with a hull, allowing it to land on water. It differs from a float plane as it uses a purpose-designed fuselage which can float, granting the aircraft buoyancy. Flying boats may be stabilized by under-wing floats or by wing-like projections from the fuselage...
s on most international services. The flying boat services ended in 1960 when Tahiti's airport opened. TEAL operated services between Auckland and Fiji to replace BCPA's service. In 1955 TEAL made its 10,000th trans-Tasman crossing. In 1959 TEAL again changed its fleet, replacing the DC6s with Lockheed L-188 Electra
Lockheed L-188 Electra
The Lockheed Model 188 Electra is an American turboprop airliner built by Lockheed. First flying in 1957, it was the first large turboprop airliner produced in the United States. Initial sales were good, but after two fatal crashes which prompted an expensive modification program to fix a design...
IIs. The turboprop aircraft was capable of carrying 71 passengers at nearly 400 miles per hour, and reduced the Auckland to Sydney flying time to 3 hours 50 minutes.
In 1961 the New Zealand Government bought the Australian Government's half share, and on 1 April 1965 the airline was renamed Air New Zealand.
First jets
On 23 September 1963 Air New Zealand signed a contract with Douglas Aircraft, agreeing to purchase three of the latter's DC-8-52Douglas DC-8
The Douglas DC-8 is a four-engined narrow-body passenger commercial jet airliner, manufactured from 1958 to 1972 by the Douglas Aircraft Company...
jet airliners. The first DC-8 arrived at Auckland on 20 July 1965, coinciding with the official opening of Air New Zealand's jet base at the airport. The remaining two DC-8s arrived on 12 August and 22 September of that year and the inaugural jet service was a flight from Christchurch to Sydney on 3 October. The increased range of the jets enabled Air New Zealand to commence services to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Asia for the first time — on 14 December the first Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
to Los Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...
service took off, via Nadi
Nadi
Nadi is the third-largest conurbation in Fiji. It is located on the western side of the main island of Viti Levu, and had a population of 42,284 at the most recent census, in 2007. Nadi is multiracial with many of its inhabitants Indian or Fijian, along with a large transient population of foreign...
and Honolulu. Services from Auckland to Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
via Manila
Manila
Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
followed in early 1966. A service to Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
via Nadi started in 1980.
Early in 1968 a further two DC-8-52s were ordered, with the first arriving on 29 January and the second on 28 February; these two aircraft had the same seating configurations as the earlier planes but were powered by slightly more powerful engines. A sixth DC-8 was leased from United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...
in November 1970, and later purchased in July 1971. A seventh and final DC-8 was also purchased from United Airlines, this one in October 1971.
DC-10
Lockheed L-1011
The Lockheed L-1011 TriStar, commonly referred to as the L-1011 or TriStar, is a medium-to-long range, widebody passenger trijet airliner. It was the third widebody airliner to enter commercial operations, following the Boeing 747 and the McDonnell Douglas DC-10. Between 1968 and 1984, Lockheed...
, Air New Zealand ordered eight DC-10-30
McDonnell Douglas DC-10
The McDonnell Douglas DC-10 is a three-engine widebody jet airliner manufactured by McDonnell Douglas. The DC-10 has range for medium- to long-haul flights, capable of carrying a maximum 380 passengers. Its most distinguishing feature is the two turbofan engines mounted on underwing pylons and a...
s, the first of which arrived on 27 January 1973. The DC-10s also introduced a new paint scheme, with a koru
Koru
The koru is a spiral shape based on the shape of a new unfurling silver fern frond and symbolizing new life, growth, strength and peace. It is an integral symbol in Māori art, carving and tattoos...
featuring on the tail in the style of a Maori waka
Waka (canoe)
Waka are Māori watercraft, usually canoes ranging in size from small, unornamented canoes used for fishing and river travel, to large decorated war canoes up to long...
(canoe) stern post instead of the previously displayed Southern Cross; this scheme was gradually introduced onto the DC-8s during 1973. The DC-10 opened up new routes to Asia as well as expanding trans-Pacific services.
In 1979, the crash of American Airlines Flight 191
American Airlines Flight 191
American Airlines Flight 191 was a regularly scheduled passenger flight in the United States from O'Hare International Airport in Chicago, Illinois, to Los Angeles International Airport. On May 25, 1979, the McDonnell Douglas DC-10-10 operating the route crashed moments after takeoff from Chicago....
led to a temporary global grounding of all DC-10s, stranding hundreds of passengers on both sides of Air New Zealand's Los Angeles–Auckland route. The airline chartered a Pan Am Boeing 747
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...
to transport stranded passengers and to keep a shuttle service open. The airline's last remaining two DC-8s maintained a trans-tasman shuttle service along with its single international standard equipped 737-200, ZK-NAR. The decision not to take up NAC's purchase rights of the trans-tasman capable Boeing 727-200 had come back to haunt the airline. With no DC-8 replacement in sight, Air New Zealand begain the study of finding a mid-sized wide bodied jet, resulting in the ordering of the Boeing 767-200ER in 1983.
Merger with NAC
In 1947 a domestic competitor appeared in the form of the Government-owned National Airways Corporation (NAC), formed when the New Zealand government nationalised
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
Union Airways and a number of other smaller operators. NAC was initially equipped with de Havilland Dragon Rapide
De Havilland Dragon Rapide
The de Havilland DH.89 Dragon Rapide was a British short-haul passenger airliner of the 1930s.-Design and development:Designed by the de Havilland company in late 1933 as a faster and more comfortable successor to the DH.84 Dragon, it was in effect a twin-engined, scaled-down version of the...
s, de Havilland Fox Moth
De Havilland Fox Moth
|-References:NotesBibliography* Hotson, Fred W. The de Havilland Canada Story. Toronto: CANAV Books, 1983. ISBN 0-07-549483-3.* Jackson, A. J. British Civil Aircraft 1919-1972: Volume II. London: Putnam , 1988. ISBN 0-85177-813-5....
s, Douglas DC-3
Douglas DC-3
The Douglas DC-3 is an American fixed-wing propeller-driven aircraft whose speed and range revolutionized air transport in the 1930s and 1940s. Its lasting impact on the airline industry and World War II makes it one of the most significant transport aircraft ever made...
s, Lockheed Electra
Lockheed Model 10 Electra
The Lockheed Model 10 Electra was a twin-engine, all-metal monoplane airliner developed by the Lockheed Aircraft Corporation in the 1930s to compete with the Boeing 247 and Douglas DC-2...
s and Lockheed Super Electra
Lockheed Model 14 Super Electra
|-See also:-References:NotesBibliography* Francillon, René J. Lockheed Aircraft since 1913. Annapolis: Naval Institute Press, 1987. ISBN 0-85177-835-6.-External links:*...
s. In the late 1940s NAC also provided international services to nearby South Pacific
Oceania
Oceania is a region centered on the islands of the tropical Pacific Ocean. Conceptions of what constitutes Oceania range from the coral atolls and volcanic islands of the South Pacific to the entire insular region between Asia and the Americas, including Australasia and the Malay Archipelago...
countries using converted ex-RNZAF Short Sunderland
Short Sunderland
The Short S.25 Sunderland was a British flying boat patrol bomber developed for the Royal Air Force by Short Brothers. It took its service name from the town and port of Sunderland in northeast England....
s. These were later supplemented by de Havilland Heron
De Havilland Heron
The de Havilland DH.114 Heron was a small, propeller-driven British airliner that first flew on 10 May 1950. It was a development of the twin-engine de Havilland Dove, with a stretched fuselage and two more engines. It was designed as a rugged, conventional low-wing monoplane with tricycle...
s, Vickers Viscount
Vickers Viscount
The Vickers Viscount was a British medium-range turboprop airliner first flown in 1948 by Vickers-Armstrongs, making it the first such aircraft to enter service in the world...
s, Fokker Friendship
Fokker F27
The Fokker F27 Friendship is a turboprop airliner designed and built by the Dutch aircraft manufacturer Fokker.-Design and development:Design of the Fokker F27 started in the 1950s as a replacement to the successful Douglas DC-3 airliner...
s and ultimately Boeing 737
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...
s. In 1972 NAC purchased a freight subsidiary, Straits Air Freight Express
Straits Air Freight Express
Straits Air Freight Express is a cargo airline, established in 1950, named for the fact that it encompassed Cook Strait and connected the North Island and South Island railway systems during the 1950s to the 1970s....
, which operated Bristol Freighter
Bristol Freighter
The Bristol Type 170 Freighter was a British twin-engine aircraft designed and built by the Bristol Aeroplane Company as both a freighter and airliner, although its best known use is as an air ferry to carry cars and their passengers over relatively short distances.-Design and development:The...
s and Armstrong Whitworth AW.660 Argosy
Armstrong Whitworth AW.660 Argosy
The Armstrong Whitworth Argosy was a British post-war military transport/cargo aircraft and was the last aircraft produced by Armstrong Whitworth Aircraft...
freighters.
On 1 April 1978 the domestic airline NAC was absorbed into Air New Zealand. Although both airlines had worked closer together during the 1970s, sharing aircraft etc., it was felt that NAC was threatening the airline. Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
was feeling out a domestic partner in New Zealand and had NAC in its sights. When NAC announced plans to purchase the Boeing 727-200 to increase capacity, and wanted to reapply for some of its Pacific Island routes, Air New Zealand objected and applied pressure to the New Zealand Government that one airline would best serve the nation's interest. The relaunched Air New Zealand used the NAC NZ prefix for domestic flight numbers and the Air New Zealand TEAL
TEAL
Tasman Empire Airways Limited was the forerunner of Air New Zealand. It was first registered in Wellington as a limited liability company on 26 April 1940....
TE prefix for international flights until October 1990, when NZ became universal. The order for the Boeing 727-200s was stopped, and Air New Zealand decided to instead purchase more Boeing 737-200
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...
s. It was a decision that would come back to haunt the airline as it would not have a mid-sized aircraft to support the DC-10s when the last DC-8s were due to retire in 1981.
Mount Erebus disaster
On 28 November 1979 Air New Zealand flight 901, a scheduled sightseeing flight over Antarctica, crashed into Mount ErebusMount Erebus
Mount Erebus in Antarctica is the southernmost historically active volcano on Earth, the second highest volcano in Antarctica , and the 6th highest ultra mountain on an island. With a summit elevation of , it is located on Ross Island, which is also home to three inactive volcanoes, notably Mount...
. The McDonnell Douglas DC-10-30
McDonnell Douglas DC-10
The McDonnell Douglas DC-10 is a three-engine widebody jet airliner manufactured by McDonnell Douglas. The DC-10 has range for medium- to long-haul flights, capable of carrying a maximum 380 passengers. Its most distinguishing feature is the two turbofan engines mounted on underwing pylons and a...
disintegrated on impact killing all 237 passengers aboard as well as the 20 crewmembers. This remains New Zealand's deadliest disaster.
1980s
By the early 1980s Air New Zealand began to replace the DC-10 with the latest Boeing 747-200Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...
. The DC-10s were leased out, the last service being in 1983, and all were sold by the end of 1986.
In 1981, Air New Zealand ordered its first wide-bodied Boeing type; the Boeing 747-219
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...
was delivered, starting the replacement of the DC-10s.
In 1982 the first Air New Zealand flight to London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
in its own right (via Papeete
Papeete
-Sights:* Interactive Google map of Papeete, to discover the 30 major tourist attractions in Papeete downtown.*The waterfront esplanade*Bougainville Park -Sights:* Interactive Google map of Papeete, to discover the 30 major tourist attractions in Papeete downtown.*The waterfront...
and Los Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...
) took place. Air New Zealand was now a global airline.
In 1985, the first Boeing 767-200
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...
were delivered. This type filled in the medium range and payload gap vacated by the DC-8 and DC-10s. This allowed the airline to service the trans-Tasman route with a more intensive frequency to the major capitals not allowed by the larger Boeing 747s. Services to Perth were also inaugurated and the type still serves this route with the Boeing 767-300
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...
ER. The Boeing 767 also became the aircraft used for main trunk domestic services.
Air New Zealand, along with Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
helped to pioneer Extended range, Twin engine, Operations ETOPS. This allowed the safe use of the efficient Boeing 767 type over long range water routes. Originally this was set at two hours distance to the nearest landfall capable airport but this soon extended to three and even four hours. It should be noted that the ETOPS rating is applied to individual aircraft, not the type in general. Today all twin engine commercial types are capable of being rated to ETOPS standard, usually as part of a 'new aircraft' program such as the Embraer E-190.
New ownership and stock exchange listing
In October 1989 Air New Zealand was privatised with its sale to a consortium headed by Brierley Investments Ltd. Brierley retained 65%, with 30% to be sold to the New ZealandNew Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
public, staff, and institutional investors — Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
with 19.9%, Japan Airlines
Japan Airlines
is an airline headquartered in Shinagawa, Tokyo, Japan. It is the flag carrier of Japan and its main hubs are Tokyo's Narita International Airport and Tokyo International Airport , as well as Nagoya's Chūbu Centrair International Airport and Osaka's Kansai International Airport...
7.5%, American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
7.5%, and a New Zealand Government "Kiwi
Kiwi (people)
Kiwi is the nickname used internationally for people from New Zealand, as well as being a relatively common self-reference. The name derives from the kiwi, a flightless bird, which is native to, and the national symbol of, New Zealand...
share" made up the balance. The Kiwi share has special powers to ensure that the majority shareholding is held by New Zealanders. In the same year Air New Zealand listed on the New Zealand Stock Exchange.
Newer aircraft
In early 1990 its first Boeing 747-400Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...
was delivered, but industrial action by pilots and cabin crew forced the first aircraft to be leased to Cathay Pacific
Cathay Pacific
Cathay Pacific is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport, although the airline's registered office is on the 33rd floor of One Pacific Place...
. Rates of pay and long hours in the air due to its then excellent range had to be re-negotiated before the airliner entered mainline service. The first flight finally took place in late 1990.
Also in 1991 it received its first Boeing 767-300
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...
, a major improvement to and supplementing the seven Boeing 767-200ERs then in service. The 767-300ER variant gained in range and capacity and allowed Air New Zealand to open new routes into Asia and increase frequency to the trans-Pacific service and introducing a second daily Los Angeles service via Honolulu and later a third via Rarotonga and Apia on alternating days. The Boeing 767-300ERs are retrofitted with winglets to improve on more efficiencies this airliner has to offer. Although the Boeing 767 fleet has been reduced due to the arrival of the Boeing 777-200ER, the Boeing 787-9 is to replace the last of the type from 2013.
The early 1990s saw new routes added:
- 1990: Kuala LumpurKuala LumpurKuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
, DenpasarDenpasarDenpasar is the capital city of the province of Bali, Indonesia. It has a rapidly expanding population of 788,445 in 2010, up from 533,252 in the previous decade. It is located at .-History:...
, BangkokBangkokBangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom... - 1991: Nagoya, TaipeiTaipeiTaipei City is the capital of the Republic of China and the central city of the largest metropolitan area of Taiwan. Situated at the northern tip of the island, Taipei is located on the Tamsui River, and is about 25 km southwest of Keelung, its port on the Pacific Ocean...
- 1993: SeoulSeoulSeoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...
- 1994: SydneySydneySydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
– Los AngelesLos Angeles, CaliforniaLos Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...
, OsakaOsakais a city in the Kansai region of Japan's main island of Honshu, a designated city under the Local Autonomy Law, the capital city of Osaka Prefecture and also the biggest part of Keihanshin area, which is represented by three major cities of Japan, Kyoto, Osaka and Kobe... - 1995: FukuokaFukuoka, Fukuokais the capital city of Fukuoka Prefecture and is situated on the northern shore of the island of Kyushu in Japan.Voted number 14 in a 2010 poll of the World's Most Livable Cities, Fukuoka is praised for its green spaces in a metropolitan setting. It is the most populous city in Kyushu, followed by...
Australia
After the success of the deregulation of the Australian domestic air market in 1990, the KeatingPaul Keating
Paul John Keating was the 24th Prime Minister of Australia, serving from 1991 to 1996. Keating was elected as the federal Labor member for Blaxland in 1969 and came to prominence as the reformist treasurer of the Hawke Labor government, which came to power at the 1983 election...
government announced that it would allow New Zealand carriers unlimited access to the Australian market. Air New Zealand immediately planned to operate frequent services between the major Australian cities. However, at the last minute the Australian Transport Minister backed out of the deal, and although Air New Zealand was allocated an increased number of international departure slots from Australian cities, it was not permitted to operate domestically within Australia. This had far-reaching implications, as Air New Zealand was forced to look at other ways of increasing its market in Australia, which resulted in the acquisition of Ansett Australia
Ansett Australia
Ansett Australia, Ansett, Ansett Airlines of Australia, or ANSETT-ANA as it was commonly known in earlier years, was a major Australian airline group, based in Melbourne. The airlines flew domestically within Australia and to destinations in Asia during its operation in 1996...
.
Expansion
Fukuoka, Fukuoka
is the capital city of Fukuoka Prefecture and is situated on the northern shore of the island of Kyushu in Japan.Voted number 14 in a 2010 poll of the World's Most Livable Cities, Fukuoka is praised for its green spaces in a metropolitan setting. It is the most populous city in Kyushu, followed by...
to its Japanese destinations, and announced its long-standing plan to buy 50% of Ansett Airlines, a significantly larger company than Air New Zealand itself. Owned 50% by TNT and 50% by News Limited
News Corporation
News Corporation or News Corp. is an American multinational media conglomerate. It is the world's second-largest media conglomerate as of 2011 in terms of revenue, and the world's third largest in entertainment as of 2009, although the BBC remains the world's largest broadcaster...
, Ansett held close to half of the large Australian domestic market, but had been declining for some years. Market analysts reported that Ansett had under-performing major assets and an ageing fleet, and needed a capital injection of at least A$300 million to shore up its weak balance sheet.
For Air New Zealand, purchasing TNT's half of Ansett represented a way to buy into the rich Australian domestic market. The deal had been under discussion with both of Ansett's owners since October 1994, and required some complex manoeuvring to meet regulatory requirements on both sides of the Tasman, including the sale of Ansett New Zealand
Ansett New Zealand
Ansett New Zealand was a wholly owned airline subsidiary of Ansett Australia, serving the New Zealand domestic market between 1987 and 2000. In order to comply with regulatory requirements relating to the acquisition of Ansett Australia by Air New Zealand, Ansett New Zealand was sold to News...
, Air New Zealand's only significant home market competitor (to News Limited) to satisfy New Zealand Commerce Commission requirements, and the sale of 51% of Ansett International (to a consortium of Australian institutional investors) to satisfy Australian Foreign Investment Review Board requirements that, if not met, would have meant the loss of Ansett International's bilateral air service agreement rights. The terms of the agreement saw Air New Zealand pay A$475 million for half of Ansett, including a A$150 million capital injection, and the transaction was completed on 1 October 1996.
A low-cost subsidiary, Freedom Air
Freedom Air
Freedom Air was Air New Zealand Group's low-cost airline which operated from December 1995 to March 2008. It ran scheduled passenger services from New Zealand to Australia and Fiji and charter services within New Zealand...
, began operations in 1996. In 1997 South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
n flights were suspended because of the Asian financial crisis, and a small partnership was formed with United Airlines
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...
. In 1998 EVA Air
EVA Air
EVA Airways Corporation "; ) is an airline based at Taiwan Taoyuan International Airport near Taipei, Taiwan, operating passenger and dedicated cargo services to over 40 international destinations in Asia, Australia, Europe and North America. EVA Air is largely privately owned and flies a fully...
and Air New Zealand jointly started operating Boeing 767
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...
services between Taipei and Auckland. In addition, Air New Zealand received three new Boeing Boeing 737-300
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...
s to operate on flights between New Zealand and Australia.
During 1998 the company started selling all five of its Boeing 747-200 aircraft to Virgin Atlantic
Virgin Atlantic Airways
Virgin Atlantic Airways Limited is a British airline owned by Sir Richard Branson's Virgin Group and Singapore Airlines...
, with these being disposed of during 1999 and 2000. Sir Selwyn Cushing became the company's chairman after Bob Matthew stepped down, and also in 1998 Air New Zealand announced alliances with various airlines and the intent to become a member of the Star Alliance
Star Alliance
Star Alliance is the world's first and largest airline alliance, headquartered in Frankfurt am Main, Germany . The alliance was founded in 1997 by five of the world's leading airlines: Air Canada, Lufthansa, Scandinavian Airlines, Thai Airways International and United Airlines...
in 1999.
1999 saw all five weekly services to Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
operated by Boeing 747-400s and an additional 747 arrived in Auckland. At the end of the year, Air New Zealand and United filed for anti-trust immunity with the United States Department of Transportation
United States Department of Transportation
The United States Department of Transportation is a federal Cabinet department of the United States government concerned with transportation. It was established by an act of Congress on October 15, 1966, and began operation on April 1, 1967...
because of the two companies' alliance agreements.
Over-expansion
In March 1999 Ansett and Air New Zealand became full Star AllianceStar Alliance
Star Alliance is the world's first and largest airline alliance, headquartered in Frankfurt am Main, Germany . The alliance was founded in 1997 by five of the world's leading airlines: Air Canada, Lufthansa, Scandinavian Airlines, Thai Airways International and United Airlines...
members. 1999 also saw the start of a long and confusing battle over ownership of Ansett. Ansett remained profitable but was having increasing difficulty in finding a way to rationalise its cost structure, and badly needed a capital injection to replace its elderly fleet. Of the two half owners, News Limited was more interested in selling out and investing the proceeds in other industries, while Air New Zealand did not have the funds to spare: with 102 aircraft, nearly 15,000 staff and a turnover of US$2.3 billion (compared with Air New Zealand's 72 aircraft, 9,200 staff and US$1.8 billion turnover) Ansett's need for capital was greater than Air New Zealand's ability to provide it—particularly given the age of Air New Zealand's own fleet.
Singapore Airlines
Singapore Airlines
Singapore Airlines Limited is the flag carrier airline of Singapore. Singapore Airlines operates a hub at Changi Airport and has a strong presence in the Southeast Asia, East Asia, South Asia, and "Kangaroo Route" markets...
(SIA) and Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
expressed an interest in buying Air New Zealand, Ansett employees planned a staff buy-out, and both SIA and Air New Zealand looked at buying News Limited's 50% share of Ansett. In March 1999 SIA made a formal offer of A$500 million for a half share. Given SIA's industry-leading status, ability to fund Ansett's re-equipment and expansion and global marketing network, industry observers were enthusiastic about the move. However as part of its original deal to buy TNT's half of Ansett, Air New Zealand had a pre-emptive right to News Limited's half, provided only that it matched or bettered other offers.
The Air New Zealand board eventually approved the sale to SIA, but negotiations stalled when major Air New Zealand shareholder Brierley Investments began buying more Air New Zealand shares and attempting to get SIA to buy Ansett through either Air New Zealand or Brierley, rather than from News Limited. In June, News Limited withdrew the offer to sell, citing "not yet resolved issues" between SIA and Air New Zealand.
At this stage, Ansett announced an unexpectedly high profit for the year—A$149 million—and News Limited took advantage of that to raise the asking price to A$1 billion. Industry analysts regarded this as far too optimistic in the notoriously boom and bust airline business, and put the true value of a half share at no more than A$700 million.
In February 2000 Air New Zealand announced its decision: it would buy the remaining half of Ansett for A$680 million. Industry observers were united in the belief that it was a bad decision: the price was probably too high, and Air New Zealand would not be able to fund the badly needed re-equipment. Monash University aviation economics academic Keith Trace commented "... by taking it on, they ensured that their own airline was in terrible danger. That was a dreadful mistake. They were taken for a ride."
Former Qantas chief financial officer Australian Gary Toomey was appointed Chief Executive Officer of both Air New Zealand and Ansett Holdings in December 2000. Services to Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
and Honolulu from Los Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...
were dropped, and were taken on by Star Alliance partners Lufthansa
Lufthansa
Deutsche Lufthansa AG is the flag carrier of Germany and the largest airline in Europe in terms of overall passengers carried. The name of the company is derived from Luft , and Hansa .The airline is the world's fourth-largest airline in terms of overall passengers carried, operating...
and United.
In 2001 Air New Zealand announced plans to buy 16 new Beechcraft
Beechcraft
Beechcraft is an American manufacturer of general aviation and military aircraft, ranging from light single engine aircraft to business jets and light military transports. Previously a division of Raytheon, it has been a brand of Hawker Beechcraft since 2006....
1900D
Beechcraft 1900
The Beechcraft 1900 is a 19-passenger, pressurized twin-engine turboprop airplane manufactured by the Beechcraft Division of the Raytheon Company . It was designed, and is primarily used, as a regional airliner...
aircraft to replace its Bandeirantes
Embraer EMB 110 Bandeirante
The Embraer EMB 110 Bandeirante is a general purpose 15-21 passenger twin-turboprop light transport aircraft suitable for military and civil duties...
and Metroliner
Fairchild Swearingen Metroliner
The Fairchild Swearingen Metroliner or the Fairchild Aerospace Metro is a 19-seat, pressurised, twin turboprop airliner first produced by Swearingen Aircraft and later by Fairchild at a plant in San Antonio, Texas, United States....
s, which had served faithfully for 20 years, servicing airports without jet capability.
Ansett collapse
For further information, see Ansett Australia DemiseAnsett was in poor shape. Lack of proper maintenance to its 767
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...
fleet—some of which were almost 20 years old—had seen the Australian Civil Aviation Safety Authority
Civil Aviation Safety Authority
The Civil Aviation Safety Authority is the Australian national aviation authority , the government statutory authority responsible for the regulation of civil aviation.-History:...
(CASA) ground seven aircraft two days before Christmas 2000 while inspections were carried out. In April 2001, one day before the busy Easter holiday period, all 10 Ansett 767s were grounded again when a series of other safety problems came to light, and Ansett was threatened with withdrawal of its Air Operator's Certificate.
To cover the loss of one third of Ansett's capacity, Air New Zealand chartered Ansett a Boeing 767 and a Boeing 747 from its own fleet, and additional aircraft were chartered from SIA, Air Canada
Air Canada
Air Canada is the flag carrier and largest airline of Canada. The airline, founded in 1936, provides scheduled and charter air transport for passengers and cargo to 178 destinations worldwide. It is the world's tenth largest passenger airline by number of destinations, and the airline is a...
, and Emirates Airline
Emirates Airline
Emirates is the airline based in the Emirate of Dubai part of the United Arab Emirates . Based at Dubai International Airport it is the largest airline in the Middle East, operating over 2,400 flights per week, from its hub at Terminal 3, to 111 cities in 62 countries across six continents...
. SIA—25% owner of Air New Zealand and thus indirectly of Ansett—agreed to provide technical assistance to get the Boeing 767s back into the air.
Despite the great loss of public confidence in the airline, the news was not all bad. Chief executive Gary Toomey announced that the total cost of the groundings was only NZ$5.2 million, and that the seven oldest Ansett Boeing 767s would be sold, along with three of Air New Zealand's 767s, and newer aircraft leased in their place. Toomey said:
- What it really highlights though is that nothing has really changed in our strategy, and that is that we need to re-equip, we need to grow our capacity, we need to have new products, so I think it just brings these objectives into focus more and more by having a high profile about what's happened.
The reality was rather different. In revenue terms, Air New Zealand was the 39th largest airline in the world, Ansett 32nd. However, both airlines were only marginally profitable and needed a substantial capital injection that neither was able to provide. The larger very successful airlines Qantas and SIA both made offers to buy the Air New Zealand group but needed regulatory approval to lift the 25% foreign ownership rule. The Clark
Helen Clark
Helen Elizabeth Clark, ONZ is a New Zealand political figure who was the 37th Prime Minister of New Zealand for three consecutive terms from 1999 to 2008...
government refused to make a decision. Deputy Prime Minister Jim Anderton said "the idea of selling our national airline to anyone would be an anathema", even though Air New Zealand was at that time already 49.9% foreign-owned: 25% by Singapore Airlines, and 24.9% by Brierley Investments, which was originally a New Zealand-based concern but had relocated to Singapore in 2000, and circumvented the foreign ownership restrictions by using a New Zealand-based trust to hold its Air New Zealand shares.
The inconsistencies of national pride were not confined to the eastern side of the Tasman: public opinion polls showed that while New Zealanders were strongly opposed to Qantas buying into Air New Zealand, and moderately opposed to SIA increasing its stake, Australians were in favour of a Qantas buy-out of Air New Zealand but objected to any further SIA ownership of Air New Zealand (and thus Ansett)..
Meanwhile, Air New Zealand's financial position was deteriorating, and Ansett was losing market share to both Qantas and a new entrant on the Australian domestic market, Virgin Blue. The Air New Zealand board decided that the answer was to spend still more money, and buy Virgin Blue as well as Ansett. On condition that that deal went through, SIA was prepared to fund the purchase of 32 new aircraft for the Air New Zealand group. Virgin Blue, however, was growing fast, largely at the expense of Ansett; the initial A$120 million offer was deemed insufficient and in August Virgin Blue owner Sir Richard Branson, with his customary gift for publicity, put an end to negotiations when he tore up on television what he claimed was a A$250 million Air New Zealand cheque. Although the offer may have been geniune the cheque was not - it was actually a cheque from a book of one of the airport managers drawn on a Qantas' staff credit union account.
On 10 September 2001, in desperation Air New Zealand offered to sell Ansett to Qantas for $1. After two days' consideration Qantas declined, and Air New Zealand suspended trading in its shares (which had already dropped enormously) and placed Ansett in voluntary administration. Ansett was bankrupt, and Air New Zealand was in barely better shape. The following day Air New Zealand announced a staggering NZ$1,425 million loss: a NZ$1,321 million write-off of Ansett, and another NZ$104 million lost by Air New Zealand itself.
Ansett's trading loss for the year had been NZ$165 million (plus another NZ$23 million for Ansett International), or about NZ$8 million a month for most of the year, but with a sudden blow-out to around NZ$40 million a month for the last two months.
A storm of public criticism on both sides of the Tasman erupted, and bitter accusations were levelled. In particular, it was asked how such massive losses were possible when Ansett had a healthy 74% average load factor.
In an angry statement, Air New Zealand denied that there had been a programme of last-minute asset-stripping, that it had put A$200 million of Air New Zealand fuel bills through Ansett, cleaned out Ansett's bank accounts, or taken Ansett engines and spare parts to New Zealand. Ansett's administrators subsequently verified there had been no last-minute asset-stripping, but many refused to let facts get in the way, as Air New Zealand workers in Australia were abused and spat on.
The trans-Tasman anger was enormous. At one stage, New Zealand Prime Minister Helen Clark, on her way back to New Zealand from the Middle East, found her aircraft blockaded on the Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
airport tarmac by laid-off Ansett workers, who refused to allow the jet to take off. Eventually, an RNZAF Orion maritime reconnaissance aircraft had to be sent to fetch her.
The Australian Securities and Investment Commission (ASIC) began an investigation of whether Ansett had gone on trading while insolvent, and eventually determined in July 2002 that it would be too expensive and difficult to proceed with an action which would, in any case, need to be many separate actions on behalf of individual creditors rather than just one.
It later became clear from the release of documents under the New Zealand Official Information Act that the New Zealand Government had pressured the Australian Government not to support legal action against Air New Zealand, saying that this would "prejudice rather than progress the interests of those with financial claims against the company". The Australian government stated that the pressure had no effect on its decisions.
New Zealand media criticised Australian media for "Kiwi bashing", contrasting poor coverage of instances of Australian protectionism and criticising pressure for New Zealand taxpayers to prop up the uncompetitive Australian business.
Laid-off Ansett workers were eventually paid most of their entitlements, partly from an A$150 million compensation package offered by Air New Zealand in return for having the ASIC enquiry dropped, but mostly by an A$10-per-seat levy imposed by John Howard
John Howard
John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....
's government on Australian airline passengers.
Rebirth and re-nationalisation
In October 2001 the New Zealand Government announced that it would provide Air New Zealand with an NZ$885 million rescue package, and in return would take up 80% ownership. Gary Toomey resigned as CEO the same month.In early 2002 Ralph Norris
Ralph Norris
Sir Ralph James Norris, KNZM was the Chief Executive Officer of the Commonwealth Bank of Australia until 30/11/2011. A New Zealander, he was previously CEO of the ASB Bank, the Commonwealth Bank of Australia's New Zealand subsidiary...
, formerly head of ASB Bank
ASB Bank
ASB is a New Zealand bank owned by the Commonwealth Bank of Australia, which is listed on the Australian Stock Exchange. It is one of the largest New Zealand banks, with branches throughout the country. It operates BankDirect, a branchless banking service that provides service via phone, Internet,...
, one of New Zealand's main banks, was announced as the new CEO of Air New Zealand, and commenced the difficult task of pulling the airline back from near-death.
In mid 2002 Air New Zealand announced it would reconfigure its domestic operations as a lower-cost airline, doing away with business class and meals on most domestic flights, the longest of which was 1 hour 50 minutes. The airline justified this new style of service (known as Express Class) on the basis that few people traveled business class and that travellers would rather save the money on airline ticket costs than pay extra for a meal. Although the company had had online bookings for several years, it made internet sales its primary sales medium, abolished travel agents' commissions and added fees for agent, telephone and counter sales. The approach was an outstanding success, with a huge increase in internet bookings being recorded once the new fare structure was introduced, and domestic bookings eventually increasing by 23% on average. During July 2002, the airline announced an order for 15 Airbus
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
A320-200
Airbus A320
The Airbus A320 family is a family of short- to medium-range, narrow-body, commercial passenger jet airliners manufactured by Airbus Industrie.Airbus was originally a consortium of European aerospace companies, and is now fully owned by EADS. Airbus's name has been Airbus SAS since 2001...
aircraft, to replace Boeing 737-300
Boeing 737
The Boeing 737 is a short- to medium-range, twin-engine narrow-body jet airliner. Originally developed as a shorter, lower-cost twin-engine airliner derived from Boeing's 707 and 727, the 737 has developed into a family of nine passenger models with a capacity of 85 to 215 passengers...
and Boeing 767-200
Boeing 767
The Boeing 767 is a mid-size, wide-body twin-engine jet airliner built by Boeing Commercial Airplanes. It was the manufacturer's first wide-body twinjet and its first airliner with a two-crew glass cockpit. The aircraft features two turbofan engines, a supercritical wing, and a conventional tail...
aircraft then in use on the Tasman. Five of these would be purchased by the airline, whilst the other ten were to be leased.
In late 2002 the New Zealand Government agreed in principle to allow Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
to purchase a 22.5% shareholding at a cost of NZ$550 million; the purchase being subject to regulatory approval in both Australia and New Zealand. However, this proposal was met with resistance from the regulatory bodies in both countries — despite industry experts such as IATA head Giovanni Bisignani calling their opposition "misguided" and suggesting that the proposed alliance was a model example of the only possible method of survival for smaller airlines. In late 2003 the Australian and New Zealand regulatory bodies both rejected the alliance as being anti-competitive, despite a worldwide trend for airlines to consolidate (such as the 2003 acquisition of KLM by Air France
Air France
Air France , stylised as AIRFRANCE, is the French flag carrier headquartered in Tremblay-en-France, , and is one of the world's largest airlines. It is a subsidiary of the Air France-KLM Group and a founding member of the SkyTeam global airline alliance...
). Air New Zealand and Qantas both announced they would appeal the decisions.
In November 2003 Air New Zealand extended the successful low-cost domestic Express concept to trans-Tasman routes. Early indications are that this move has also proved successful, with an estimated 10% increase of bookings in the first few months of operation. On 30 June 2004 the airline commenced non-stop services from Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
to San Francisco, the first new international destination for eight years. In September 2004 Air New Zealand was named Best Long Haul Airline in the seventh annual Conde Nast Traveller
Condé Nast Traveler
Condé Nast Traveler is a US magazine published by Condé Nast. It has its origins in a mailing sent out by the Diners Club club beginning in 1953, listing locations that would take the card. It began taking advertising in 1955. In order to attract more advertisers, it became a full-fledged magazine,...
UK Readers' Awards.
On 20 September 2004 the New Zealand High Court blocked Qantas' plan to buy 22% of Air New Zealand. Qantas and Air New Zealand decided not to lodge an appeal. However, both Ralph Norris
Ralph Norris
Sir Ralph James Norris, KNZM was the Chief Executive Officer of the Commonwealth Bank of Australia until 30/11/2011. A New Zealander, he was previously CEO of the ASB Bank, the Commonwealth Bank of Australia's New Zealand subsidiary...
and his counterpart at Qantas, Geoff Dixon
Geoff Dixon
Geoff Dixon is an Australian corporate executive and former CEO and Managing Director of Qantas.-Qantas:...
, have stated that the airlines will continue to assess other forms of cooperation that will not conflict with competition regulations. In October 2004 SIA sold its remaining stake in Air New Zealand.
See also
- History of New ZealandHistory of New ZealandThe history of New Zealand dates back at least 700 years to when it was discovered and settled by Polynesians, who developed a distinct Māori culture centred on kinship links and land. The first European explorer to discover New Zealand was Abel Janszoon Tasman on 13 December 1642...
- List of airlines of New Zealand