AGIFORS Airline Operations Washington 2-6 May 2004.

AGIFORS Airline OperationsAGIFORS Airline Operations

WashingtonWashington2-6 May 20042-6 May 2004

The challenges ahead……...

• The biggie - “Open Skys”, deregulation and the challenges of the new Low Cost Carriers and fifth freedom airlines.

• New Zealand has one of the most open and deregulated airline operating environments anywhere in the world. Almost any airline can operate to/from and within the country.

In 1998 2 airlines, Qantas and Air New Zealand operated the Trans Tasman routes between New Zealand and Australia with a roughly 50/50 split of traffic. Average airfares were $400 per sector ( 260USD )


• In 2004, that same piece of ocean is now served by 12 airlines. The average low end fare now is $169 one way ( $110USD for a 3 hour sector ) with specials starting at $119 ($77USD )

• To deal with this extreme drop in revenues and yields, greater levels of costs needed to be removed from the business, across all divisions and the airline needed to become more innovative and proactive

• A new product “Tasman Express” was launched that delivered higher levels of service than that of a LCC, ( free food and alcohol) but well below a full service airline.


• OTP becomes even more critical as the airline strives to extract more utilisation out of its aircraft ( and thus generate greater revenue streams ) as well as deliver to our customers expectations

• To deliver improved OTP, and to enable better management of our operating costs, our operations centre is being revamped. All the key decision makers across the operation, will now be co-located on the same floor in a single building.

• Our key operations tools, AirOps, AirCrews and AirFlight, are all being upgraded to the latest versions to allow us to actively utilise the new generation of operations Decision Support tools


• We are working actively with Sabre and some other airlines to develop similar tools for crew Decision Support

• We are developing a Payload Optimisation process that will include the ability to profit model in advance, as well as on the day

• we continue to work with the SIMair team to develop a schedule robustness tool to ensure our future schedules have a fair chance of succeeding on the day

• plus doing our day job, keeping the airline flying!!

AGIFORS Airline OperationsAGIFORS Airline Operations

WashingtonWashington2-6 May 20042-6 May 2004

Thank you.Thank you.

AGIFORS Airline Operations Washington 2-6 May 2004.

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