Air New Zealand to alter operations in order to compete

Airline Industry Information, August 4, 2003

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

Air New Zealand is planning to make major alterations to its operations in order to compete in its main market with three new entrants - Virgin Blue, Emirates and Royal Brunei.

The carrier's other main priority is to convince Australian and New Zealand antitrust regulators to approve an alliance with Australian carrier Qantas Airways. Officials fear that the merger could be anticompetitive and could lead to higher airfares and freight costs.

The airline's chief executive refused to discuss the proposed changes, according to Reuters.

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