Air NZ defers fleet deliveries in cost-cutting move
A sweeping business review by Air NZ has resulted in a cost-cutting plan that will include aircraft delivery deferrals, although the carrier has also unveiled a new international destination and widebody cabin upgrades. The review was prompted by an earnings downgrade issued Jan 30. While the airline still expects to achieve a healthy profit in its fiscal year through June 30, it is concerned about a downward trend in passenger demand that it believes signals a fundamental market shift. CE Christopher Luxon outlined a range of measures “to ensure a return to earnings growth in the lower-growth environment.” This will include trimming capacity expansion plans, deferring NZ$750m (US$510m) in capital spending related to aircraft deliveries, and a 2-year cost-cutting program aimed at delivering $60m in annual savings. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-03-29/star/air-nz-defers-fleet-deliveries-in-cost-cutting-move
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Air NZ defers fleet deliveries in cost-cutting move
A sweeping business review by Air NZ has resulted in a cost-cutting plan that will include aircraft delivery deferrals, although the carrier has also unveiled a new international destination and widebody cabin upgrades. The review was prompted by an earnings downgrade issued Jan 30. While the airline still expects to achieve a healthy profit in its fiscal year through June 30, it is concerned about a downward trend in passenger demand that it believes signals a fundamental market shift. CE Christopher Luxon outlined a range of measures “to ensure a return to earnings growth in the lower-growth environment.” This will include trimming capacity expansion plans, deferring NZ$750m (US$510m) in capital spending related to aircraft deliveries, and a 2-year cost-cutting program aimed at delivering $60m in annual savings. <br/>
