KEY POINTS:
Air New Zealand says it is confident its new service to Canada will make a profit within its first year of operation.
Chief executive Rob Fyfe announced the direct flights from Auckland to Vancouver yesterday morning.
Air New Zealand will initially schedule three flights a week starting in
November. The journey will take just over 14 hours.
About 46,000 Canadians visit New Zealand each year and about 17,000 New Zealanders visit Canada.
Group general manager international Ed Sims said the route was the next logical step in the airline's expansion along the west coast of North America.
"It reflects a confidence in our customer proposition that we haven't had in the past," he said. "I think we are rediscovering how to grow."
The airline did not add any new routes for eight of the past 10 years but had added four in the past 2.
Fyfe has said Air New Zealand will look to add a new route every year for the foreseeable future.
Sims said the airline had about 20 potential routes under consideration and was constantly modelling those opportunities.
The process of deciding on a new route involved looking at inbound and outbound tourist numbers, potential cargo movements and the presence of competitors.
Air New Zealand had had a sales team in Vancouver selling San Francisco and Los Angeles services for several years, Sims said.
"That gives us a bit more confidence that we know the market."
The airline hoped to drive some growth from the Australian market because the route via Auckland would still represent the quickest way to Vancouver for travellers from Adelaide and Melbourne.
Working with Air Canada to link with other Canadian cities would also help to increase passenger numbers, Sims said. He was confident the new route would not cut across growth in other Air New Zealand services.
"The beauty of the San Francisco operation is that it hasn't cannibalised the LA route and we don't believe any of the growth on Vancouver will come from San Francisco."
The focus for Air New Zealand was now North Asia, the west coast of the Americas, Britain and Europe.
Air New Zealand will fly its new 777-200ER planes to Vancouver.
Sims said they were ideal because they had the range of the 747 but were smaller and thus more economical.
Air New Zealand shares closed up 2c yesterday at $2.14.
