Why Air New Zealand’s profit is falling

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  • Опубликовано: 27 ноя 2024

Комментарии • 92

  • @MarketsWithMadison
    @MarketsWithMadison  3 месяца назад +23

    This is a short episode because it was a press conference situation (not my favourite, always feels like a pressure cooker). But I have a longer interview booked with Greg in September. Drop any questions you want me to ask him in the comments below.

    • @D1ZAZTR
      @D1ZAZTR 3 месяца назад +1

      Here is one:
      When can we start seeing direct flights to India?, currently I fly with AirNZ/Singapore airlines or Singapore airlines on its entirety.
      If they are looking into it, what locations are they considering?

    • @cheeseburger3209
      @cheeseburger3209 3 месяца назад

      Lol​@@D1ZAZTR

    • @mylesjohnson3793
      @mylesjohnson3793 3 месяца назад

      Who care what planes we fly in. He talks rubbish. He has no idea.soon we tax pay will have to bail them out once again.

    • @stevend3323
      @stevend3323 3 месяца назад +1

      Here is a question
      Why are last minute fares from Auckland to Christchurch or vice versa are $480 one way (no bags, no meal).
      I can get to Asia return for less.

    • @cheeseburger3209
      @cheeseburger3209 3 месяца назад

      @@stevend3323 coz you weigh 800 pounds

  • @NickGranville
    @NickGranville 3 месяца назад +5

    Love your work Madison!

  • @edwardreuben6650
    @edwardreuben6650 2 месяца назад

    Exactly right. Pandemic, inflation made things tougher for all businesses. Travelling economy can make you feel like a sardine being packed and squeezed in the seating area. Social media has some impact too as many people can go to another country without leaving their rooms. Great interview, no surprises but good to hear Air New Zealand's point of view.😀

  • @tradetech7889
    @tradetech7889 2 месяца назад +1

    I love his reaction to Madison being given the microphone! ;-) He was dreading it lol

  • @yangtze873
    @yangtze873 3 месяца назад +1

    Dreamliners are their primary long haul aircraft and they’ve grounded four of them due to Rolls Royce issues… that’s a lot considering Air NZ’s fleet isn’t the biggest.
    Air NZ was really slow to the party post COVID. (Rehiring and training staff, reactivating aircrafts etc) Fiji Air who were the polar opposite (in that they had a brilliant post COVID plan) are thriving even in this tough economy.
    I love Air NZ. I hope they recover soon, but relying on Boeing isn’t exactly a great strategy Greg.

  • @jermunitz3020
    @jermunitz3020 3 месяца назад +4

    They have to create their own market. Not many people want to fly domestic when the seats are $200.

    • @NickGranville
      @NickGranville 3 месяца назад +1

      I wish flights were $200. Trying to book wgtn to chch and it’s $260-400. And another to Auckland from wgtn and I’m looking at $400+. Ridiculous

    • @Delosian
      @Delosian 3 месяца назад +3

      Wellington to Nelson is $450.60 return with AirNZ, and that is in three months time. It is a 25 minute one way flight. If I go by Sounds Air, for those same days and times it is $339.66. I really want to support AirNZ, but they're not making themselves the easy choice.

  • @NickGranville
    @NickGranville 3 месяца назад +4

    Prices are just too high. People have voted with their feet and are finding other ways to travel, or not at all. That’s parts of it. And the Boeing thing isn’t helping. Hopefully air Nz gets realistic about prices

    • @cheeseburger3209
      @cheeseburger3209 3 месяца назад +1

      @@NickGranville what Boeing thing? Air NZ doesn't have any 737 Max in its fleet and the engine drama with the 787 is unrelated to Boeing. So what's your point?

    • @tradetech7889
      @tradetech7889 2 месяца назад

      Prices are high yes, ALL pricing because of the economic disaster of shutting down our country for 2 years and printing $80 billion over a 'cold"

  • @keagang10
    @keagang10 3 месяца назад +3

    Here’s a possible question for your longer interview: When all the planes that are on the ground currently start coming back online, is there sufficient crew (pilots and cabin crew) to operate them, or does the headcount trimming now mean the airline may get caught short when the spool up gets going?

    • @MarketsWithMadison
      @MarketsWithMadison  3 месяца назад +1

      Great Q! This was part of their upstart problems when Covid restrictions eased.

    • @sammy88l99
      @sammy88l99 3 месяца назад

      Crew doesn't matter because the alliance use each other's planes. So AirNZ planes could be operated by another Star Alliance pilot and cabin crew and vice versa.

    • @keagang10
      @keagang10 3 месяца назад +1

      @@sammy88l99 yeah that’s not quite right. Crew can only fly on their own airlines aircraft. The alliance is for passenger bookings and loyalty programmes only.

  • @marnoster
    @marnoster 3 месяца назад +7

    We paid $1200 the other day for two people Dunedin to Auckland return. Would love to travel more and support tourism in NZ but flights are crazy expensive. It all started with Egg-gate and now all companies are just having a laugh with their price hikes

    • @cheeseburger3209
      @cheeseburger3209 3 месяца назад

      @@marnoster lol. You'd make a great communist with your apparent ignorance of how money and the economy works.
      Suppose you think Banks charge higher interest rates because they're greedy, right?

    • @tradetech7889
      @tradetech7889 2 месяца назад

      Drive it with ferry costs (if they are running) and compare. With flying at least you saved days traveling

    • @greybuckleton
      @greybuckleton 2 месяца назад

      You will see a lot of the prices are pretty similar to pre COVID. Auckland Sydney for $300 or less. Auckland Dunedin as low as $160 each way next week. And Auckland Wellington for $100. It has always been essential with airline travel to book ahead if you are price sensitive. I'm only picking tickets a week ahead to give those prices. I suspect you booked last minute or with no flexibility in time of travel?

    • @mierypesado6740
      @mierypesado6740 Месяц назад

      So $184US one way across the country. That's about on par with the US and Latin America (where I'm used to flying around). What's the issue?

  • @wildmountainman1
    @wildmountainman1 3 месяца назад +1

    Just flew back from NYC with ANZ a few days ago and economy class had only about 40 people in it! Anyone who wanted it could lay across 3 seats and have a “flat bed.” Business and Premium Economy were fuller. The 787 is a better experience, however the 777 decor is dated and needs improvement asap.

    • @OGSwifty
      @OGSwifty 2 месяца назад

      I think their long-term plan is getting rid of their B777 fleet so I doubt any investment that ain't necessary's going to happen.

  • @grahamcook9289
    @grahamcook9289 2 месяца назад +2

    Aren't the engine manufacturers responsible for the losses from grounded aircraft, either directly or indirectly via Boeing and Airbus and should pay compensation as well as fixing the engines.

    • @tradetech7889
      @tradetech7889 2 месяца назад +1

      Yes, but this is NZ remember, the country where nobody is made to take personal responsibility!

    • @MarketsWithMadison
      @MarketsWithMadison  2 месяца назад

      My understanding is they get some compensation from the manufacturer. Will ask for more detail on this!

  • @michaelbooth1097
    @michaelbooth1097 3 месяца назад

    I love our airline! It’s the best in the world! We love the staff and the resilience they have for putting up with you complainers on here. If you had a look into the demands and abuse from customers they get every day you will know why you get a quick firm response back. Try jet star…..go on ….. you think they will put up with your abuse good luck. It’s an airline that is everything you expect and less. If you all move over to that airline it would make our travel so much better!

    • @ncrh5186
      @ncrh5186 2 месяца назад

      Best in the world by what metrics? If you’ve flown by airlines that are ACTUALLY considered best in the world…you’d see there’s a difference.

    • @michaelbooth1097
      @michaelbooth1097 2 месяца назад

      @@ncrh5186 there are probably 10 airline considered best in the world. I choose to support ours. That’s my metrics bud.

  • @CSM393
    @CSM393 2 месяца назад +1

    10 aircraft offline. That's rough.

    • @tradetech7889
      @tradetech7889 2 месяца назад

      Its appalling and 'woke' Boeing has to be made accountable

  • @UnkleSi
    @UnkleSi 3 месяца назад +2

    Prices are too high - everything else from air nz was just excuses. They have ruined their own local market which they pretty much have a monopoly on.

  • @colinboniface194
    @colinboniface194 2 месяца назад

    I would guarantee that post covid, when AIR rehired redundant staff back, it was on a new reduced salary... Down turns force a company to focus on costs so, it follows, that as an economy returns to fluid, those efficiencies should carry over... I wouldn't be surprised to see the share price drop to the mid 40c a share before the financials pick up...

  • @grahamcook9289
    @grahamcook9289 2 месяца назад +3

    This guy actually talks like a competent CEO, someone who knows the business and market and is in full command of the facts.

    • @tradetech7889
      @tradetech7889 2 месяца назад

      Nope, he's arrogant and ignorant and the attitude towards Madison from the getgo was quite evident

  • @Frithogar
    @Frithogar 3 месяца назад +3

    A competent CEO of an airline is planning 1 to 2 decades ahead. I wonder who the CEO was 10 years ago?

    • @MarketsWithMadison
      @MarketsWithMadison  3 месяца назад +2

      10 years ago was Luxon (now PM, time flies). Rob Fyfe resigned in 2012.

  • @beaztsnipr
    @beaztsnipr 3 месяца назад +3

    Prices are too damn much

  • @stevend3323
    @stevend3323 3 месяца назад

    Start of this month went to Fiji for a funeral. We have a business with bramches in Auckland & Christchurch. The return last minute fare to Nadi was cheaper than to Christchurch. Ridiculous. I travel to the UK at last once a year, and I've never flown long haul wirh Air NZ, ever. Why are we paying a premium to fly on a sub-par service airline (compared to most asian and gulf airlines) definite generally very poor customer service. Transtasman flight canceled last minute in February. AirNZ service (on the ground) is about the same as Jetstar.
    Very disappointing. The answers given by the CEO was really a word salad. No answers about best returning sectors.

    • @cheeseburger3209
      @cheeseburger3209 3 месяца назад

      @@stevend3323 Of course being New Zealanders they'll tell you how great they are.

    • @stevend3323
      @stevend3323 3 месяца назад +1

      @cheeseburger3209 Yes, always saying how friendly etc they are, best service...blah, blah, blah. Treated worse than larger lout, (in the lounges), must ask for a whisky. $40 for a bag, a meal and 'drinks' there is a reason they use the first 50 minutes of international service to hand out a thimble of warm water. Some of us remember what service was like in AirNZ many years ago.

  • @tradetech7889
    @tradetech7889 2 месяца назад

    Any business the NZ Government is majority stake holder in turns into an economic disaster. AIZ & FBU just to mention two on the NZX..without mentioning other infrastructural companies

  • @LWJCarroll
    @LWJCarroll 3 месяца назад +1

    Darn this missed on International Cargo exports etc, which gives a look at NZ exports economy. Crayfish, other seafood, frozen meat etc. ? 😊

    • @MarketsWithMadison
      @MarketsWithMadison  2 месяца назад

      Will make sure to delve into cargo in a bigger Air NZ episode later this month!

  • @G7FX_REVIEWS
    @G7FX_REVIEWS 3 месяца назад

    Domestic airfares around Australasia/Pacific are too high compared to getting domestic flights around Europe is much cheaper. if only Air NZ had more competition to bring air fares down would be good for us the consumer. When they making 100s of millions a year still want to Trim staff to make more millions in profits

  • @communistgreyman2078
    @communistgreyman2078 3 месяца назад +2

    Air New Zealand is like a dog with fleas that you can’t scratch off. I’m convinced scale is its biggest problem.

  • @braydeny
    @braydeny 3 месяца назад +2

    Gee he wasn't very transparent on the break down lol. Aren't they a public company? Loling

    • @marcuskan
      @marcuskan 3 месяца назад

      Job security through obscurity.

  • @AndrewRod-c5v
    @AndrewRod-c5v 3 месяца назад

    Air nz. Made the right choic. On airbus a321 ! The engines were a nature fit for air nz as p and w engineering baee at cheistchurch airport ! But one major mistake was aelling 777 200 s dueing covid but i understand why ! I am a sfre holder but i choose. To. Fly the cheapest. Airfares available as mos people do ! But furtue of the airlinss like good !

  • @tradetech7889
    @tradetech7889 3 месяца назад +4

    This disaster of a woke airline just doesn't get it, I will point out my frustration with them:
    1: The entire board needs firing, particularly with the latest appointment of a certain delusional exGreen MP on the payroll. WTH!
    2: They must decide whether they want to be an actual 'profitable' great service airline or just another Government corporate activist group who seems more focused on ideology than practicality. Example: NOBODY has asked for or wants electric aircraft! NOBODY.
    You have ONE job AIZ, MAKE MONEY, stay out of politics and climate activism
    3: Their biggest liability is their largest controlling shareholder who during the covid BS you would of sworn wanted them to be destroyed along with many other critical businesses. Example, the shutting down of our ONLY NZ oil refinery meant Air NZ could not get reasonable domestic aviation fuel supplies during a period which was absolutely vital.
    4: The second ridiculous entire country lockdown killed them and many others. Thus they were forced to take the $900 million at that point to even exist.
    5:To blame "inflation" which we all know is really the effects of $80 BILLION of money printing to pay for the disastrous decisions the previous government made during 2020-2022 is laughable. An arrogant penny stock which was once $2 a share in just 2018

  • @MarkWilcoxNZ
    @MarkWilcoxNZ 3 месяца назад

    should be chorus'd, open up competition for the user experience

  • @kiwikeith7633
    @kiwikeith7633 3 месяца назад +1

    We wanted to fly for our last NZ holiday. I had a vital question I needed answering. So I asked Air NZ, and got NO answers. It was a fair question, but the treatment was ignorant. Previous to that, we did board an Air NZ plane bound for Christchurch. I was taking my two very young daughters. That was their first flight. Cabin crew demanded that I not sit near my daughters. The youngest went hysterical in fear of flying without Dad nearby for security. Crew reluctantly relented. I found the Air NZ treatment OFFENSIVE in the extreme. I complained to the Human Rights commission, which found no caser for Air NZ to answer. To my knowledge there is no requirement in NZ for custodial father to be seated away from the youngsters he is escorting. For these experiences, I would book Jetstar. As it went for our holiday, I took the car on the ferry instead. Now that is good for AirNZ ! isn't it? I am ookay if Air NZ goes bust.

  • @NaturalExplorerNZ
    @NaturalExplorerNZ 3 месяца назад +2

    Terrible service to kiwis

  • @Edgycoo
    @Edgycoo 3 месяца назад +2

    Air NZ prices have been way way way too high for so long. Even when I am over seas returning home or going anywhere, if i can avoid air nz I save money big time. Might be time to review your pricing like mac donalds and I can tell, air nz will say xyz reasons but this view is shared across nzers.

  • @gfan003
    @gfan003 3 месяца назад

    USD shares its' inflation with our currency That NZD is Pretty weak on the Global market. I bought a limited Nike kobe from NY last month for 300 USD and That is about 560 NZD. Same thing goes with traveling, you Don't Want to spend money overseas as every thing is Just more expensive. Wonder would NZ abandon USD and joining the BRICS payment system, Things would be much cheaper If That happens.

    • @cheeseburger3209
      @cheeseburger3209 3 месяца назад

      @@gfan003 Brics isn't really a thing. All of those countries still trade mainly in USD

    • @cheeseburger3209
      @cheeseburger3209 3 месяца назад

      @@gfan003 Also shares is too kind of a term for what the United States does to other countries when it creates more money out of thin air.
      They get to shove the broomstick up everyone's bum sideways, because if you complain you'll be overthrown by "peaceful protesters".

  • @xmj6830
    @xmj6830 3 месяца назад

    Great thanks

  • @pauldalkie8366
    @pauldalkie8366 3 месяца назад +2

    This has always been a basket case company supported by government money, and monopolistic practices. It could never survive in the open commercial market on its own.

    • @keagang10
      @keagang10 3 месяца назад

      @@pauldalkie8366 and which government money would that be?

    • @MarketsWithMadison
      @MarketsWithMadison  3 месяца назад +1

      @@keagang10 The near $1b loan it got during Covid is one instance of it (although had a crazy interest rate of 9% or something) and the govt contracts for cargo through the pandemic.

    • @keagang10
      @keagang10 3 месяца назад +1

      @@MarketsWithMadison yep granted. Not dissimilar to many other airlines (Qantas for example). My main point being it was all repaid, with interest. Lots of it as you said. The notion that it’s still propped up by the government is incorrect, and the returns on investment to the government have well outstripped any assistance over the years.

    • @xmj6830
      @xmj6830 3 месяца назад

      When USA changed its regulation decades ago to allow more airline companies to enter into business and bring about competition and cheaper fares, it had profound impact. Yes it allows more and more people to afford flying at a very good price. But it also introduced dirty practices such as cutting down on maintenance costs at the expense of people lives in some cases. Some companies went down under after a while. Here in NZ, the market is too small for such competition compared to much bigger markets. "Monopolistic practices" ? not sure...We are in a more realistic situation. One company for internal flights but you can choose a different one if you go overseas. The most important, we need to fly safe...

    • @MarketsWithMadison
      @MarketsWithMadison  3 месяца назад +1

      @@keagang10 very good points! It's definitely expected to operate on its own as a commercial entity. It's only received help in very extreme circumstances, and yup all paid back in full, with interest!

  • @schanna9588
    @schanna9588 3 месяца назад +4

    maybe profits are dropping because people dont want to pay top dollar for a product that is shit.

  • @leighmatthews1586
    @leighmatthews1586 3 месяца назад

    Food is abysmal

    • @tradetech7889
      @tradetech7889 2 месяца назад

      Only airlines with good food are Singapore or Thai ive found

  • @christopherwalton1373
    @christopherwalton1373 3 месяца назад +1

    Just wait until they start using that climate friendly fuel!! Your never going to fly again🤣

  • @grahamcook9289
    @grahamcook9289 2 месяца назад

    Maddy babe, is it time for a new style? I'm sure the whole Morticia Adams thing is your best look.

  • @Paulkjoss
    @Paulkjoss 2 месяца назад

    Heard one older white guy CEO you’ve heard them all

  • @shanehooper7681
    @shanehooper7681 3 месяца назад +2

    Could it be that people experience the cringy and unprofessional flight safety briefing with side serving of Maori legend and comparison of high tech flight with paddling a canoe in the sky as off putting, and choose to travel with another airline?

    • @cheeseburger3209
      @cheeseburger3209 3 месяца назад

      @@shanehooper7681 it serves as a timely reminder to all of us that Air NZ are so far up their own back sides they could be their own dentists.

  • @Gary-i9f
    @Gary-i9f 2 месяца назад

    No time for the guy what so ever .

  • @donpaul2883
    @donpaul2883 2 месяца назад

    I have experienced nothing short of arginase ,unhelpful delayed response to issues regards Air points etc etc , it appears in management situations for customers they simply want to wear you down ,when you have done your dalliance on their rules But still they want to give a statement of convenance - Zero customer care , to think tax payers bailed this company that acts like a dole office for mass employment - more competition required .