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Home / Business / Companies / Airlines

Covid 19 coronavirus: An Air NZ boss outlines what travel will look like in level 2

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
13 May, 2020 06:09 AM4 mins to read

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Air NZ's domestic network will gear up as the country moves to Level 2. Photo / Mark Mitchell

Air NZ's domestic network will gear up as the country moves to Level 2. Photo / Mark Mitchell

Air New Zealand passengers on flights from tomorrow will be offered face masks if they want to wear them but one staple of the journey - the boiled lolly - will be off the menu for now.

The airline says travel will be ''materially different'' as it gears up for more domestic flying under level 2. From about 5 per cent of its normal schedule for essential travel only, the airline is able to build up to about 30 per cent of normal under new rules which allow travel by anyone between regions.

Airport lounges will remain closed for at least two weeks, boarding of planes will be done in groups of about six to 10 passengers and unless they are travelling together there will be social distancing within aircraft cabins.

READ MORE:
• Coronavirus could leave major airlines 'bankrupt by May', expert warns
• Airlines still in talks with Govt as first tranche of package rolled out
• Coronavirus: Airlines offer free cancellations as outbreak worsens
• Air NZ boss on coronavirus: 'Not all airlines will survive this'

Auckland Airport has also released details of how it will handle the increased number of travellers, putting up 1000 yellow vinyl signs in anticipation of extra travellers moving through the precinct, displaying distancing requirements everywhere from bathrooms and baggage pick-up to security queuing areas.

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In a travel trade presentation, Air New Zealand chief revenue officer Cam Wallace said the airline was focused on continuously cleaning its aircraft and in the next two weeks there would be no inflight service.

''It's something we will build into our business when more confident.''

It would be a fortnight at least until boiled sweets returned too.

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Passengers and staff had the option to wear face masks if they wanted - their own or those provided, said Wallace.

He said the requirement for social distancing - which meant domestic jets only had 65 per cent of seats available and turbo prop planes 50 per cent - meant the fare structure had changed.

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Air NZ's revenue boss Cam Wallace has seen $6 billion annual revenue totally collapse. Photo / Jason Oxenham.
Air NZ's revenue boss Cam Wallace has seen $6 billion annual revenue totally collapse. Photo / Jason Oxenham.

There would still be a small number of Grabaseat deals but the airline had introduced ''Goldilocks'' pricing - not too hot and not too cold. This meant a smaller number of fares in the upper bands but also a smaller number in the lower group.

''Social distancing is the biggest economic constraint we have - we're hopeful it might be removed by the Government as we go in to level 1,'' said Wallace.

While about 30 per cent of its domestic network would be restored over the next month, only about 20 per cent of seats would be available.

The airline was hopeful of a transtasman bubble as soon as possible and other destinations could be brought back on an ad-hoc basis depending on the health situation. Countries in Asia such as Taiwan had been successful in battling Covid 19 but he cautioned that it could be a year before long-haul flying resumed.

''Unfortunately for us every one of our forecasts we've had to push out so we're trying to be realistic and pragmatic.''

The airline expected the first part of the domestic market to recover would be those visiting friends and relatives (VFR) where there was pent up demand.

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''We think that market will activate quite quickly - some of it will be a drive market, some of it will be a fly market.''

The leisure market would come next, especially around the ski market.

The lucrative corporate market would be ''really interesting'' given the widespread adoption of video conferencing during the lockdown.

''What we've had is real acceleration so for the last six weeks. Frankly the technology is better than was expected,'' he said.

''We've got a real responsibility to stimulate the demand and the need for travel, not only for our leisure market but for our corporate market as well.''

Wallace, who has been active on Twitter informing followers about the state of airline's network, said the industry's position was bad but it wanted to ''shine a light on the hill.'' Tourism and travel businesses would be viable and thriving again.

''We really do in Air New Zealand believe in the social and the economic power of travel, and we want to get people travelling around the country and travelling across the ditch into the Pacific Islands and right across our network in the future.''

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