Air New Zealand Earnings to Fall due to Qantas Airlines
Air New Zealand Earnings to Fall due to Qantas Airlines. Air New Zealand's earnings are poised to come under significant pressure as a result of Qantas Airways' strategy of launching regional Jetstar flights in New Zealand and threatening to enter the monopoly New Zealand-mainland North America market in partnership with American Airlines, analysts say. A Credit Suisse analysis has revealed Kiwi passengers in economy class are paying on average 38 per cent more per kilometre on non-stop flights between New Zealand the mainland US compared with what Australian passengers on Qantas pay per kilometre on the longer flights between Sydney and Melbourne and Los Angeles. The Qantas figures were translated to New Zealand dollars to conduct the exercise. The overall premium of 15.4 per cent received by Air NZ on trans-Pacific flights is lower in part because the Kiwi carrier's flights have a smaller proportion of business-class seats than Qantas. Qantas and Ameri...