One-way loyalty
Regarding Air New Zealand's decision to cancel flights in various locations, I have to say this is an extremely poor business decision on Air NZ's part.
They posted a net profit after tax of $262 million (as at June 30 2014). Overall revenue was up 1 per cent. They have entered their third year of profit, and after 75 years in operation are achieving their largest profits ever. All of this while running at a loss on half a dozen routes ... not bad!
They are clearly not looking at the bigger picture or the business in an overall fashion.
I had a large service business, and had over 120 separate client accounts. We made a profit on most but did run at a loss on a few. We kept these clients, and operated them off the back of, and surplus income, of the other accounts - making up the overall business. This was in effect part of the cost of doing business.
There were many benefits from doing this, e.g. we used them as references, kept good staff employed, kept competitors out and honoured agreements that we felt were financially sound when we entered into them.
We took a hit on a few but profited overall - just like Air New Zealand.
Clearly there has been no thought for those who have supported this airline, and obviously no thought on the possible backlash as a result of what appears to be such a commercially selfish decision.
Air New Zealand needs to realise that many passengers fly from these locations to Auckland to catch a return flight overseas - I will never fly Air New Zealand again if this decision is upheld. There are numerous fantastic airlines that we can use out of Auckland.
Then I will consider the loyalty affiliates ... you know, the rental car companies, hotels etc. Why should I support any organisation working in with a company that has no regard for me?
Now then, if the financial wizards at Air NZ work all this out then they may well revisit this decision. Perhaps this is yet again the brainchild of some junior executive eager to make his or her mark? (We see this all too often in modern day business.)
Overall it seems a very inconsiderate decision, and if passengers from these locations do boycott the airline regarding their international flights, and tell others to consider the same line, then perhaps this airline will re-address the arithmetic and look at it with real loyalty - which according to me is a two-way thing. Swings 'n roundabouts!
WAYNE JACKSON
Future international passenger of Emirates, QANTAS, Singapore Airlines, Thai, Virgin, Jetstar, China Southern, China Eastern, Fiji Airways, Tahiti Nui, Air Vanuatu, Cathay Pacific, LAN and others!
Bangkok