Air New Zealand Limited · NZX:AIR

Air New Zealand — Deutsche Bank Conference (November 2007)

7 slides from Air New Zealand's conference presentation, Nov 27, 2007

  1. Slide 1: Long Haul Carriers in the modern low cost world

    Long Haul Carriers For personal use only in the modern low cost world Nathan Agnew GM Strategic Development 1 1

  2. Slide 2: Short haul vs long haul

    Short haul vs long haul For personal use only ORY DAL BKK SYD = Three hour flight reach 2 LONG HAUL DEFINED • Long haul low cost and international low cost not the same • Proliferation of low cost airlines in Continental Europe, Asia and US • Sector lengths generally less than five hours and often s

  3. Slide 3: Direct operating cost

    Direct operating cost For personal use only 100% 90% 80% Ownership/maintanence/other 70% Percentage of cost 60% Enroute/airport 50% Crew 40% Fuel 30% 20% 10% 0% 3 hours 10-12 hours Flight time 3 A TYPICAL FLIGHT AKL TO LAX… • 130 tonnes of fuel consumed (approx 1,022 barrels) • At USD100bbl, fuel co

  4. Slide 4: Other considerations

    Other considerations For personal use only Operating cost Low cost carrier • 777-300ER 100% • All economy seats 90% 80% • Cost per seat advantage of 70% Ow nership/maintanence/ circa 30% assuming similar other labour rates/productivity Percentage of cost 60% Enroute/airport 50% Crew • Economy Yield

  5. Slide 5: Trends

    Trends For personal use only Macro trends So what might we see? • High fuel prices • Destination substitution to shorter • Non fuel cost base well managed haul international • Low cost long haul operators • Long haul travel showing strong doing it tough absent a credible growth - driven by growing b

  6. Slide 6: The Air New Zealand response

    The Air New Zealand response • Match supply to demand For personal use only - Economics of airlines highly leveraged to supply/demand balance - Maintain fleet growth flexibility - Maintain network flexibility • Move to all Boeing 777 / 787 fleet - Highly fuel efficient - Smaller aircraft, greater fl

  7. Slide 7: Fleet and network flexibility

    Fleet and network flexibility For personal use only Exits Air NZ widebody seat count +5% • Singapore 10,000 • Christchurch / LAX 9,000 • Nagoya 8,000 • Taipei Seat Count 7,000 • Pacific Islands 6,000 Entries 5,000 -5% • HKG / LHR 4,000 2008 2009 2010 2011 2012 2013 2014 2015 • Vancouver Year High Gr

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