Air New Zealand () is the flag carrier of New Zealand. Based in Auckland, the airline operates scheduled passenger flights to 20 domestic and 28 international destinations in 18 countries, primarily within the Pacific Rim. The airline has been a member of the Star Alliance since 1999.
Air New Zealand succeeded Tasman Empire Airways Limited (TEAL) on 1 April 1965. The airline served only international routes until 1978, when the government merged it and the domestic New Zealand National Airways Corporation (NAC) into a single airline under the Air New Zealand name. Air New Zealand was privatised in 1989, but returned to majority government ownership in 2001 after nearing bankruptcy due to a failed tie-up with Australian carrier Ansett Australia. In the 2017 financial year to June, Air New Zealand carried 15.95 million passengers.
Air New Zealand's route network focuses on Australasia and the South Pacific, with long-haul flight services to eastern Asia and North America. It was the last airline to circumnavigate the world with flights to London Heathrow via Los Angeles and Hong Kong. The Hong Kong stopover was discontinued in March 2013 when Air New Zealand stopped Hong Kong–London flights in favour of a codeshare agreement with Cathay Pacific. Flights to London Heathrow by the airline stopped altogether in 2020 due to heavy competition and a lack of demand. The airline's main hub is Auckland Airport, located near Māngere in the southern part of the Auckland urban area. Air New Zealand is headquartered in a building called "The Hub", located from Auckland Airport, in Auckland's Wynyard Quarter."We're committed to our environment ." Air New Zealand. 21 (23/29). Retrieved 26 August 2009.
Air New Zealand currently operates a mixed fleet consisting of the Airbus A320, Airbus A320neo family, Boeing 777, and Boeing 787 jet aircraft, as well as a regional fleet consisting of ATR 72 and Bombardier Q300 turboprop aircraft. Air New Zealand was awarded Airline of the Year in 2010 and 2012 by the Air Transport World Global Airline Awards. In 2014, Air New Zealand was ranked the safest airline in the world by JACDEC.
History
On 1 April 1965, Tasman Empire Airways Limited was rebranded as Air New Zealand.TEAL makes way for Air NZ Ltd Canberra Times 2 April 1965 page 11TEAL Renamed Australian Transport April 1965 page 26Air New Zealand History Air New Zealand
With the increased range of the Douglas DC-8s the airline's first jet aircraft, Air New Zealand began transpacific services to the United States and Asia with Los Angeles and Honolulu added as destinations in 1965. The airline further acquired wide-body McDonnell Douglas DC-10 airliners in 1973. The DC-10s introduced the new koru-inspired logo for the airline, which remains to this day.
In 1978, the domestic airline National Airways Corporation (NAC) and its subsidiary Safe Air were merged into Air New Zealand to form a single national airline, further expanding the carrier's operations. As a result, NAC's Boeing 737 and Fokker F27 aircraft joined Air New Zealand's fleet alongside its DC-8 and DC-10 airliners. The merger also resulted in the airline having two IATA airline designators: TE from Air New Zealand and NZ from NAC. TE continued to be used for international flights and NZ for domestic flights until 1990, when international flights assumed the NZ code.Tata to TE Australian Transport & Distribution Management September 1990 page 15
The crash of Air New Zealand Flight 901 in 1979 rocked the airline's reputation among the New Zealand public. A subsequent Royal Commission of Inquiry was critical of the airline and led to the resignation of chief executive Morrie Davis, who had been working in the airline since the 1940s. The New Zealand Government and Air New Zealand formally apologised over the Mt Erebus disaster in 2019.
In 1981, Air New Zealand introduced its first Boeing 747 airliner, and a year later initiated service to London via Los Angeles. The five 747-200s owned by Air New Zealand were all named after ancestral Māori canoes. 1985 saw the introduction of Boeing 767-200ER airliners to fill the large size gap between the Boeing 737 and 747 (the DC-8 and DC-10 had been withdrawn by 1983).
In 1989, under neoliberal economic reforms by the Fourth Labour Government, the airline was privatised with a sale to a consortium headed by Brierley Investments. (with remaining stakes held by Qantas, Japan Airlines, American Airlines, and the New Zealand government). The New Zealand air transport market underwent deregulation in 1990, prompting Air New Zealand to acquire a 50% stake in Ansett Australia in 1995.
In March 1999, Air New Zealand became a member of the Star Alliance. From 1999 through 2000, Air New Zealand became embroiled in an ownership battle over Ansett with co-owner News Limited over a possible sale of the under-performing carrier to Singapore Airlines.
Merger with Ansett
In 2000, Air New Zealand announced that it had chosen instead to acquire the entirety of Ansett Transport Industries (increasing its 50% stake in the carrier to 100%) for A$680 million from News Corporation in an attempt to break into the Australian aviation market. Business commentators believe this to have been a critical mistake, as Ansett's fleet, staffing levels and infrastructure far outweighed that of Air New Zealand. Subsequently, both carriers' profitability came under question, and foreign offers to purchase the Air New Zealand Group were considered. In September 2001, plagued by costs it could not possibly afford, the Air New Zealand / Ansett Group neared collapse. A failed attempt at purchasing Virgin Blue was the final straw, and on 12 September, out of both time and cash, Air New Zealand placed Ansett Australia into voluntary administration, following which Ansett was forced to cease operations. Air New Zealand announced a NZ$1.425 billion operating loss. Air New Zealand was subsequently bailed out by the New Zealand Government, with Helen Clark's Labour Government taking an 82% stake in the company.
21st century
In October 2001, Air New Zealand was re-nationalised under a New Zealand government NZ$885 million rescue plan (with the government taking an 82% stake), and subsequently received new leadership. This act was the only thing that spared Air New Zealand from going into administration and likely grounding.
In 2002, Air New Zealand reconfigured its domestic operations under a low-cost airline business plan, and the New Zealand government refused a proposal from Qantas to purchase a one-fifth stake in the carrier. Air New Zealand returned to profitability in 2003, reporting a net profit of $NZ165.7 million for that year. The carrier saw increasing profits through 2004 and 2005. In 2004, the airline announced a relaunch of its long-haul product, featuring the introduction of new seats in its business, premium economy, and economy class cabins.
In 2003, Air New Zealand added the Airbus A320 to its fleet for use on short-haul international flights, and later domestic flights. In 2005, the airline received its first Boeing 777 (-200ER variant) aircraft and placed orders for the Boeing 787 Dreamliner in 2004. The airline was later announced as the launch customer for the −9 variant of the 787.
On 21 December 2010, the New Zealand government approved an alliance between Air New Zealand and Australian airline Virgin Blue (now named Virgin Australia), which allowed both airlines to expand their operations between Australia and New Zealand with codeshares for trans-Tasman and connecting domestic flights, and reciprocal access to frequent flyer programmes and airport lounges. Air New Zealand subsequently purchased a 26% shareholding in Virgin Australia Holdings to cement the relationship. By October 2016 Air New Zealand sold its remaining stake in Virgin Australia to investors and the Nasham Group. On 4 April 2018, Air New Zealand ended its partnership with Virgin Australia which went into effect from 28 October 2018.
In 2011, Air New Zealand introduced the Boeing 777-300ER to its fleet, as well as the Economy Skycouch, a set of three economy class seats that could be converted into a flat surface by raising the leg rests. After a four-year delay, Air New Zealand took delivery of its first Boeing 787-9 on 9 July 2014. The airline retired its final Boeing 747 in September 2014, its last Boeing 737 in September 2015, and its last Boeing 767 in March 2017, leaving it with a simplified fleet of Airbus A320 aircraft for short-haul operations and Boeing 777 and 787 aircraft for long-haul operations.
In November 2013, the New Zealand Government reduced its share in Air New Zealand from 73% to 53% as part of its controversial asset sales programme, realising $365 million.
In October 2019, the airline announced it would discontinue its Los Angeles to London route in October 2020 while launching a new non-stop route from Auckland to New York. In March 2020 Air New Zealand sold its London Heathrow slots for US$27 million (approximately NZ$42 million). The 10:50 arrival and 15:20 departure slots were taken over by United Airlines. The London route was prematurely cancelled in March 2020 due to the COVID-19 pandemic, while the launch of the New York route was rescheduled, with the first flight taking place on 17 September 2022.
Air New Zealand announced a major refurbishment of the cabins of its 787 aircraft in June 2022, with the first aircraft going into service in 2025. A new seating option dubbed "The Skynest" is set to be introduced on incoming new Boeing 787-9 and 787-10 aircraft from 2026.
Corporate affairs and identity
Head office The Air New Zealand head office, "The Hub", is a office park located at the corner of Beaumont and Fanshawe streets in Wynyard Quarter, Auckland.Taylor, Colin. "Big piece of Viaduct for little guys." The New Zealand Herald. Saturday 21 October 2006. Retrieved 5 March 2010.Gibson, Anne. "Air NZ readies for headquarters shift." The New Zealand Herald. Monday 14 August 2006. Retrieved 26 August 2009. The office includes two connected six-level buildings.Pae, Peter. "Air New Zealand touts being green, quirky." Los Angeles Times. 10 October 2008. 3. Retrieved 26 August 2009. It opened in 2006 after costing NZ$60 million to develop and construct. From late September to early October 2006 the airline moved 1,000 employees into "The Hub" from four buildings in the Auckland CBD, and other buildings elsewhere.
Air New Zealand previously had its head office in the Quay Tower in the Auckland CBD, and from 1948 to 1973 had its head office in Airways House on Customs Street East."World Airline Directory." Flight International. 10 April 1969. 557. "Head Office: Airways House. 101-3 Customs Street East. Auckland. New Zealand.""Directory: World Airlines." Flight International. 16–22 March 2004. 70. "Quay Tower, 29 Customs Street West, Private Bag 92007, Auckland, 1020, New Zealand" The company also occupies premises at the Smales Farm Business Park in Takapuna on the North Shore, adjacent to the bus station and Northern motorway. It is home to the Contact Centre staff (additional to those at 'The Hub'), Tandem Travel and other services.
Subsidiaries Operations subsidiaries Air New Zealand Cargo is the only current subsidiary of Air New Zealand Limited.
Previously, the airline had several wholly owned subsidiary regional airlines – Air Nelson, Mount Cook Airline and Eagle Airways – that served regional destinations throughout New Zealand under the Air New Zealand Link brand. On 26 August 2016, Eagle Airways ceased operations following the retirement of the Beech 1900D aircraft. Air Nelson and Mount Cook Airline ceased operations in late 2019, and were merged into its parent's operations.