The Economy Skynest. (CNW Group/Air New Zealand)

Air New Zealand made this announcement:

Air New Zealand has unveiled a ground-breaking new lie-flat prototype sleep product for economy class travellers.

The Economy Skynest is the result of three years of Air New Zealand research and development, with the input of more than 200 customers at its Hangar 22 innovation centre in Auckland. The airline has today filed patent and trademark applications for the Economy Skynest which provides six full length lie-flat sleep pods.

Air New Zealand Chief Marketing and Customer Officer Mike Tod says that as the airline operates some of the world’s longest flights, such as the upcoming Auckland–New York service at up to 17 hours 40 minutes one way, it is committed to putting more magic back into flying.

“We have a tremendous amount of development work underway looking at product innovations we can bring across all cabins of the aircraft.  A clear pain point for economy travellers on long-haul flights is the inability to stretch out. The development of the Economy Skynest is a direct response to that challenge,” Mr Tod says.

Air New Zealand will make a final decision on whether to operate the Economy Skynest next year after it has assessed the performance of its inaugural year of Auckland–New York operations.

General Manager of Customer Experience, Nikki Goodman says customer and cabin crew feedback on the Economy Skynest during its final phase of development has been outstanding with significant partners also keenly involved.

“We see a future flying experience where an economy-class customer on long-haul flights would be able to book the Economy Skynest in addition to their Economy seat, get some quality rest and arrive at their destination ready to go. This is a game changer on so many levels,” Ms Goodman says.

“We’re so excited to be sharing this product development with our customers. This is one of the highlights of three years’ intensive work centred on customer wellbeing. We’re sure this innovation is going to be a game changer for the industry and bring significant improvements to long-haul flying.  We expect other airlines will want to explore licensing the Economy Skynest from us just as they have with the Economy Skycouch.”

Air New Zealand’s Head of Airline Programmes Kerry Reeves says ‘can do’ is one of the airline’s key values and the Economy Skynest prototype is a tangible example of this.

“At Air New Zealand, we continue to nurture a can-do attitude, we’re not afraid of being bold and trying new things. The question is never ‘can we do this’ but instead ‘is it right to do this for our customers?’ and, if so, ‘how will we do this?'”

“Our ability to take a good idea, to execute and deliver an innovation that works in our environment, our market and for our people and customers gives us an edge.”

Mr Reeves says the scale of the challenge in developing the Economy Skynest and working through its certification with the necessary regulators is immense compared with the development of the Economy Skycouch.

“But it was a prize worth chasing and one that we think has the potential to be a game changer for economy class travellers on all airlines around the world.”

Air New Zealand has begun trialling edible coffee cups with customers in the air and on the ground as it explores new and innovative ways to meet its sustainability challenges.

The airline currently serves more than eight million cups of coffee each year.

Air New Zealand Senior Manager Customer Experience Niki Chave says that while the airline’s current cups are compostable, the ultimate goal would be to remove these totally from landfills.

“We’ve been working in partnership with innovative New Zealand company ‘twiice’ to explore the future of edible coffee cups, which are vanilla flavoured and leakproof. The cups have been a big hit with the customers who have used these and we’ve also been using the cups as dessert bowls,” Ms Chave says.

‘twiice’ co-founder, Jamie Cashmore says the edible cups could play a big role in demonstrating to the world that new and innovative ways of packaging are achievable.

“It’s terrific that Air New Zealand has partnered with us to showcase to its customers and the world that a little bit of Kiwi ingenuity and innovation could have a really positive impact on the environment while at the same time delivering a really cool and tasty customer experience,” Mr Cashmore says.

Mr Cashmore says ‘twiice’ is working on extending its edible range of crockery and expects to rollout new products next year.

The ‘twiice’ edible cup trial backs up Air New Zealand’s recent switch to plant-based cups on board all aircraft and in lounges. The plant-based cups are made from paper and corn instead of plastic, which enables the cup to break down in a commercial composter. Switching to plant-based cups is expected to prevent around 15 million cups from going to landfill annually. The airline is also encouraging customers to bring their own reusable cups on board aircraft and into its lounges.

Ms Chave says the airline will continue to trial ‘twiice’s’ edible coffee cups and work with the company and other partners to explore scaling options that could make it a viable long-term product for the airline.

Photos: Air New Zealand.

Air New Zealand is accelerating its ambitions for North America and will launch a nonstop service between Auckland and Newark using its Boeing 787-9 Dreamliner in October 2020.

To direct capacity to faster-growing markets, the airline has also made the difficult decision to withdraw from its daily Los Angeles-London service from October 2020.

Air New Zealand Acting Chief Executive Officer Jeff McDowall says while it’s hard to farewell such an iconic route, the airline must remain focused on markets with the greatest opportunity for long-term profitable growth.

Air New Zealand will fly between Auckland and its alliance partner United Airlines’ New York hub at Newark Liberty International Airport three times weekly, year-round, using its latest configuration Boeing 787-9 aircraft.

London decision

Los Angeles-London has been a flagship route for Air New Zealand and an important link connecting New Zealand and Europe since its launch in 1982, however Mr McDowall says market dynamics have affected performance in recent years.

Mr McDowall says the hardest aspect of the decision is the impact on Air New Zealand’s people who’ve worked incredibly hard to build the route and to achieve the highest customer satisfaction levels across the airline’s international network.

Los Angeles-London will operate as scheduled until October 2020 and no tickets have been sold beyond this date. Air New Zealand has chosen to announce the withdrawal more than a year in advance to allow time to support its people and to avoid any impact to customers booked to travel.

Europe, including the UK, remains a significant sales region for Air New Zealand. Currently more than two thirds of revenue generated by its London team is unrelated to the Atlantic route and the airline will retain a sales, marketing and cargo presence in London to serve this important market, including after the cessation of its Los Angeles-London service.

United followed up with announcement:

Air New Zealandand United Airlines have announced the only nonstop service between New Zealand and the United States East Coast will begin in October 2020. Air New Zealand announced it will begin three-times weekly new nonstop service between Auckland and Newark, further strengthening the joint venture relationship between Air New Zealand and United Airlines.

In 2018, Air New Zealand and United Airlines announced new year-round nonstop Air New Zealand service between Chicago and Auckland.

Air New Zealand service between New York/Newark and Auckland

Air New Zealand will operate three times weekly, year-round service with its newly configurated Boeing 787-9 Dreamliner aircraft. Flight time will be approximately 17 hours and 40 minutes southbound and 15 hours 40 minutes northbound.

Air New Zealand code share service will be offered on 90 flights across the U.S. for convenient connections to Auckland via Newark. United Airlines operates more flights from its hub at Newark Liberty International Airport than any other airline, with more than 400 flights in the U.S. and around the world.

Since United and Air New Zealand began their alliance in 2016, the joint venture has opened up more travel options for U.S. and New Zealand travelers than ever before. Overall passenger volumes have grown as customers traveling from New Zealand to the U.S. connect to United’s broad domestic network through its hubs in Chicago, Houston, Los Angeles and San Francisco.

Air New Zealand’s new flights between New York/Newark and Auckland will be available for purchase beginning in November on united.com:

Air New Zealand is the first airline in the world to launch an innovative new pillow – which uses technology originally developed for astronauts – to further improve comfort for its passengers.  

The pillow is coated with Outlast^® which was developed for use in space gloves to protect against extreme temperature fluctuations and keep hands cool. 

The temperature regulating product, awarded certified space technology by the Space Foundation, absorbs heat as the skin gets hot and as the skin cools the heat is released.   

The new hypo allergenic pillow has been introduced on the airline’s Chicago route and is available to passengers traveling in Business Premier.  

Air New Zealand Senior Manager Customer Experience Niki Chave says the airline is always looking at ways to enhance the customer experience in an innovative way.  

“We know quality sleep is important to our passengers, particularly those traveling in Business Premier on our long haul routes. This pillow allows passengers to lay on the side that regulates their temperature or sleep on the regular side, which ultimately gives them more control over their environment.”  

The pillow is manufactured by premium German bedding company Paradies which actively produces bedding in a CO2-neutral process, keeping climate protection and sustainability at the core of its business.  

The pillow is now available alongside the All Birds eye mask to enhance comfort on the Chicago route, the longest in Air New Zealand’s network.  

Air New Zealand’s innovative new pillow 

Boeing and Air New Zealand have finalized an order for eight 787-10 Dreamliner airplanes valued at $2.7 billion at list prices. The carrier, recognized for its long-range flights and global network, will integrate the largest Dreamliner model into its world-class fleet of 787-9 and 777 airplanes from 2022 to strategically grow its business.

The airplane deal, announced in May as a commitment, includes options to increase the number of aircraft from eight up to 20, and substitution rights that allow a switch from the larger 787-10 to smaller 787-9s, or a combination of the two models for future fleet and network flexibility.

Air New Zealand was a global launch customer for the 787-9 and today operates 13 of the Dreamliner variant. With another 787-9 on the way and the 787-10 airplanes in the future, the airline’s Dreamliner fleet is on track to grow to 22. The new Dreamliner aircraft will replace Air New Zealand’s fleet of eight 777-200ERs. Air New Zealand’s widebody fleet also includes seven 777-300ERs.

Air New Zealand has made this announcement:

Air New Zealand has announced earnings before taxation for the 2019 financial year of $374 million, compared to $540 million in the prior period. Net profit after taxation was $270 million and operating cash flow was $986 million.

The result was driven by operating revenue growth of 5.3 percent, which was offset by a $191 million increase in the price of fuel, as well as a temporary increase in operating costs as the airline sought to improve network resiliency for its customers in the face of the global Rolls-Royce engine issues.

Shareholders of Air New Zealand will receive a final dividend of 11.0 cents per share, taking the total ordinary dividends declared for the year to 22.0 cents per share, in-line with the prior year.  The dividend will be paid on 18 September, to shareholders on record as at 6 September.

Chairman Tony Carter said the result represents the relentless focus and hard work of more than 12,500 Air New Zealanders, who have risen to the challenges this financial year has presented.

“While we are disappointed that we did not meet the expectations we first set for ourselves at the start of the financial year, the fact is we are operating in a different demand environment than we were 12 months ago. To have achieved a solid result despite these headwinds speaks volumes about the extraordinary dedication and commitment of our people.

“When we first saw signs that demand was slowing, we took immediate steps to review our network, fleet and cost base, to position the airline for success in a lower growth environment. While we have made progress, this work is still ongoing.

“I am very confident in our strategy and our experienced, world-class executive team who are focused on driving our business back to earnings growth, while ensuring that we maintain the airline’s strong customer-centric culture.”

Chief Executive Officer Christopher Luxon noted that as the airline navigates a more challenging demand environment, delivering competitive fares and a superior customer experience remain a top priority.

“While the New Zealand market has seen foreign competitors reduce capacity or withdraw completely this year, we have continued to grow both domestically and internationally and to adjust our domestic fare structure to keep New Zealanders connected to each other and the world.

“In a society with rapidly changing customer expectations, we know we need to continue to lift our game. We invest a huge amount of time understanding what our customers value and how we can improve their experience, which is why we introduced free Wi-Fi onboard our long-haul flights earlier this year and announced changes to our Economy product offering. We can’t wait to share some further exciting product developments and enhancements in the coming months, which we think our customers are going to love.”

Mr Luxon went on to say that as the airline looks to the coming year, it is in a fundamentally strong position and will target further growth that taps into new pools of demand.

“We were very excited earlier in the year to announce that we would begin flying to Seoul in November 2019. A new seasonal service from Christchurch to Singapore will begin in December 2019, which will provide greater choice for visitors and locals alike.  We will also launch additional frequency into both Chicago and Taipei, as these routes continue to outperform our expectations.

“Another important milestone will be the return of our remaining Rolls-Royce engines back into service, which we are expecting to happen in the coming months. This will enable us to bring further reliability back to our flying schedule and to utilise our most efficient aircraft in the optimum way.”

Mr Luxon acknowledged that while the outcomes of the business review announced in March will provide some clear benefits to the airline in the coming year, there were still further cost efficiencies that needed to be realised following the conclusion of operational and overhead cost reviews.

“We are focused on ensuring that Air New Zealand is fit for the new lower growth environment and part of that involves identifying ways that we can deliver meaningful, sustainable reductions in our cost base. We know we already run a tight ship and that any further cost savings will require exponential effort.

“That is why we have selected a respected external consultancy to assist with this process. They can provide us with an outside perspective and are able to benchmark us to provide a clear understanding of how our processes compare with global peers.”

Mr Luxon also stated that the airline remains committed to delivering on its sustainability strategy and initiatives.

“We know that sustainability is a critical global issue and we risk losing our social license to operate if we do not genuinely address climate change. That is why you will see us continue to invest, whether that be further reducing single use plastic items on board our aircraft or making it easier for our customers to voluntarily offset their emissions with our FlyNeutral tool.”

The airline will also take delivery of six ATR aircraft and three Airbus A320/321 NEO aircraft in the 2020 financial year, which will provide continued growth, fuel efficiency and cost benefits on the Tasman and Pacific Islands network. An additional Boeing 787-9 Dreamliner will also join the fleet this year. 

Air New Zealand’s investment grade credit rating and strong operating cash flow have enabled it to continue to invest in the most innovative, efficient and comfortable aircraft on the market to deliver on its commitment to grow sustainably. Earlier this year the airline announced that it would replace its fleet of Boeing 777-200 aircraft with the Boeing 787-10 Dreamliner, subject to shareholder approval in September.  These aircraft will start to be delivered from the 2023 financial year and will be a game changer for the airline, offering a 25 percent improvement in fuel efficiency.

Outlook

Based upon current market conditions and assuming an average jet fuel price of US$75 per barrel, the airline is targeting earnings before taxation to be in the range of $350 million to $450 million. This outlook excludes the impact of the new accounting standard for leases.

Financial Highlights

• Operating revenue of $5.8 billion
• Earnings before taxation of $374 million
• Net profit after taxation of $270 million
• Operating cash flow of $986 million
• Fully imputed final dividend of 11.0 cents per share, resulting in annual ordinary dividends of 22.0 cents per share

Air New Zealand has today launched a new safety video Air All Blacks in support of the team during its 2019 season and as they prepare for Japan in September. 

All Blacks Head Coach Steve Hansen along with Captain Kieran Read, Sam Cane, Anton Lienert-Brown and Ryan Crotty join a diverse cast in the safety video which takes viewers to the headquarters of “newly established airline” Air All Blacks where ideas for the airline’s first safety video are being discussed.     

After insisting on being the next Air New Zealand spokesperson after travelling with the airline in 2017, Suits actor Rick Hoffman also features in the video, as well as leading Kiwi actor Cliff Curtis.  

Hoffman says his positive experiences in New Zealand and Air New Zealand’s quirky humor were a huge drawcard for him to star in the video.  

“I love New Zealand – the food is amazing and the people are amazing. It’s the way it should be everywhere! I will be thrilled to be recognised on an Air New Zealand safety video.” 

Building on the airline’s twenty-year partnership with New Zealand Rugby, the video also stars 1987 rugby legends Sir Michael Jones, Sir John Kirwan, Buck Shelford, Gary Whetton and David Kirk and former Black Ferns Captain Fiao’o Fa’amausili as well as former Australia Captain George Gregan.  

Air New Zealand General Manager Global Brand & Content Marketing Jodi Williams  

says the latest video is a futuristic take on two iconic Kiwi brands coming together to show the world just how much rugby is in our DNA. 
 
“Changing our name to Air All Blacks is a fun demonstration of our support for the boys in black. Our people feel a great sense of pride flying the team around the world and both organizations consistently show the world what a huge impact a small nation can make on the world stage.” 

The release of Air All Blacks marks the ten-year anniversary of the airline’s unique take on safety videos, and in true Air New Zealand style, the latest video manages to poke some Kiwi fun along the way.  
 
“It’s been incredible to celebrate both local and international stars, fans and our very own Air New Zealanders over the past ten years. It’s only fitting that this video brings to life something that is distinctly New Zealand – from the grassroots of Rippa Rugby to the nostalgia of the 1987 All Blacks, with a unique modern twist,” says Williams.  
 
Adding to the iconic Kiwi line-up, Air All Blacks is backed by the exclusive, original soundtrack Universe, a brand-new track from New Zealand band Six60. Listen to it on Spotify from Friday 9 August (NZT).  
 

Air New Zealand has made this announcement:

To mark Plastic Free July the airline has removed individual plastic water bottles from its Business Premier and Premium Economy cabins, as well as from its Works Deluxe offering on Tasman and Pacific Island services under five hours in duration. This is expected to divert more than 460,000 bottles from landfill annually and reduce carbon emissions by more than 300,000 kilograms per year by reducing weight on the aircraft.

Individual plastic sauce packets are being removed from Business Premier cabins on mainland North America and Hong Kong services, and these will be eliminated entirely from the global network by the end of October. Customers will instead be served sauce in reusable dishes which is expected to prevent around 200,000 plastic packets going to landfill each year.

The airline is also set to roll out coffee cups made from plants rather than plastic across its domestic and international networks from October, while plastic water cups will be transitioned to recyclable alternatives from September. The previous commitment targeted coffee and water cups on Air New Zealand’s domestic network where the majority of cups are used, however, the scope has now expanded to introduce the lower impact cups across the international network, lifting the total number of cups being replaced this year from 14.7 million to 44.5 million.

Air New Zealand’s Acting Head of Sustainability Anna Palairet says the airline is focused on reducing the amount of single-use plastic products it purchases at source, as the lack of composting infrastructure in New Zealand at present poses a challenge.

“Single-use plastic is a highly topical and visible issue for us and our customers, so we’re really pleased to be able to share this progress to celebrate Plastic Free July. The lack of composting infrastructure available in New Zealand is a challenge so we have been focused on reducing the amount of single-use plastic products we purchase in the first place.

“It’s great to see more and more customers are bringing their reusable drink bottles and keep cups on board, and we encourage people to do this – our cabin crew team is happy to fill these.”

Air Lease Corporation (ALC) has announced the delivery of one new Airbus A320-200neo aircraft on long-term lease to Air New Zealand.  Featuring Pratt & Whitney PW1127G engines, this aircraft is the first of two A320-200neos confirmed to deliver the airline in 2019 from ALC’s order book with Airbus.

“We are pleased to be the first to introduce the A320-200neo to Air New Zealand’s fleet and continue the long and excellent relationship that ALC has with the airline,” said Grant Levy, Executive Vice President of Air Lease Corporation. “The A320-200neo provides key enhancements to the airline’s operations as Air New Zealand continues to add the most technological advanced, fuel-efficient aircraft to modernize their expanding fleet and offer the highest quality passenger experience.”

Image: Air New Zealand.