KEY POINTS:
Air New Zealand has delivered a healthy profit, battled rising fuel prices, tangled with a new domestic competitor and had a good look at its new generation of long haul airliner at the public launch of the Boeing 787. Chief executive Rob Fyfe looks back over the past
year and forward to 2008.
How would you describe 2007?
For us 2007 was a year of discovery.
Other countries have national icons such as the Taj Mahal and the Sydney Opera House, and we have our own, including Aoraki Mt Cook and Sir Edmund Hillary. We discovered that the humble Air New Zealand Cookie ranked as indispensable in the eyes of many New Zealanders
We discovered how many seats are too many seats on a 737.
We discovered a great new charter destination in Kuwait, only to un-discover it just as quickly.
We discovered Vancouver as a great new direct long haul destination for Air New Zealand, and after a tough couple of years of restructuring and change, positive customer feedback started to go through the roof.
What was the company's greatest achievement?
My pick was topping the Star Alliance customer service monitor for the Best Business Class in Star Alliance (for the first time ever). With some great airlines, including Singapore Airlines, SAS, Thai, ANA and Lufthansa, in Star Alliance, this was a great achievement by our people. It made me feel 10 feet tall when I went to the subsequent Star Alliance board meeting.
And greatest disappointment?
2007 was a good year for us, not many disappointments at Air New Zealand.
For me, I'm still gutted about the Rugby World Cup - sometimes the planets just all line up against you and Cardiff was one of those days, but that doesn't make it any easier to deal with.
I shaved my head for a Leukaemia and Blood Foundation fundraising event and got an insight into what I might look like a few years on - it ain't pretty!
What will be the major challenges in 2008?
Continuing to make money with jet fuel peaking at US$115 ($149) per barrel this year. Our fuel bill has gone up by $800 million a year compared with four years ago. This cost increase represents four times last year's profit and we've had to completely reinvent the business to cope. Next year will be more of the same.
We did consider for a short period renaming our business Air New Zealand Airports, because as an airport you get to pass all your cost increases on to your customers, thereby increasing your profit margins, and all your customers are apparently thrilled.
Where are you going for the holidays?
It's a secret. One of the most gorgeous waterfront spots in the world - friendly people, great weather, a 45 minute round trip to get the paper and milk in the morning, less than an hour from Auckland, and no mobile phone coverage.
What will you be reading?
All the tip-sheets I can find on where the fish are this summer. I need to redeem myself with my kids who, after last year, think I'm absolutely useless at finding fish - an accusation I take very seriously.
