Air
NZ axes Hong Kong to London
Air
New Zealand is axing flights between Hong Kong and London in a bid to
recover profits.
6
November, 2012
The
service will be cut from March next year after a review found it was
not likely to become profitable in the foreseeable future, the
airline says.
Around
70 London-based cabin crew jobs are expected to be slashed.
The
move will enable more capacity to be redeployed to North American
destinations such as Los Angeles and San Francisco, chief executive
Rob Fyfe said.
Last
month the company announced a further 5,000 return seats to its North
American routes through to the end of June 2013.
Customers
with tickets between Hong Kong and London from March 4, 2013 will be
re-booked, in most cases onto Cathay Pacific.
Around
8000 customers are affected. Koru members will still receive lounge
access and benefits.
‘‘We
wanted to strengthen our presence in Hong Kong which is an important
market and vital gateway into Mainland China for Air New Zealand,’’
Fyfe said.
‘‘In
line with this we have received approval from the New Zealand
Ministry of Transport to form a strategic agreement with Cathay
Pacific effective from 12 December 2012.”
Air
New Zealand began flying services between Hong Kong and London in
October 2006 and operated between 5-7 times a week.
Fyfe
told analysts last year that no stone would be left unturned as part
of the comprehensive review of its long-haul business, which was
losing $1 million a week, including the possibility of pulling out of
London.
Earlier
this year Fyfe ruled out axing the flagship route, saying Air NZ
would respond by better matching capacity to reduced passenger demand
on the London service via Hong Kong and Los Angeles.
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