Published on : Tuesday, September 1, 2020
Airline New Zealand announced that they will now focus more on domestic travel over international business. Airline New Zealand recently reported that the on-going pandemic loss is huge and recovery from the situation is uncertain at the moment. Hence, to sustain business they will concentrate on domestic and Trans-Tasman airline.
Air New Zealand recorded a massive loss of NZ$87 million ($58 million) in 18 years, in 2020. Now a recovery and sustenance plan has been drafted by the Air New Zealand CEO, Greg Foran considering the key priorities for 2021. Very soon the Air New Zealand will concentrate on short-term and evolve as a large domestic airline. It will also focus on cargo and some flying to the Tasman and Pacific Islands. Flexibility options in travel routes have been incorporate to accelerate operations amidst uncertain business conditions. They will also focus on increasing business in cargo movement and ensure connection of New Zealand with the entire world.
A plan to attract local tourism is another approach to rebuild and reconnect with domestic corporate business. New business strategies have been drafted to stay connected with potential customers on digital network. The airline also has a plan to reduce cash usage by 60% and accelerate domestic flying through both cargo and passenger by following COVID regulations.
The record loss in 18 years, according to Chairman Therese Walsh, due to pandemic situation has affected various plans and business strategies severely. As prior to COVID the airline planning to launch the first ever non-stop link between New Zealand and New York, they had also announced several major upgrades to the customer experience. Now, all plans are on hold.