AUCKLAND- Air New Zealand (NZ) faces significant operational disruptions, with CEO Greg Foran anticipating around two to three years of aircraft and maintenance challenges.
The situation is financially impactful, costing the airline approximately $150 million annually.
Air New Zealand 787 Grounding
Foran, who recently visited engine manufacturers Rolls Royce and Pratt and Whitney, confirmed the extended disruption period with Checkpoint, RNZ.
Key Operational Issues:
- Suspended direct flights to Chicago (ORD)
- Four Boeing 787 Dreamliners grounded
- Ongoing engine maintenance problems with Rolls Royce Trent 1000 and Pratt & Whitney engines
Specific Challenges:
- Premature wear and weakness in Rolls Royce Trent 1000 engines
- Maintenance complications affecting aircraft availability
- Regional route cuts drawing criticism from MPs and local mayors
Financial and Strategic Implications:
- Estimated $150 million annual operational cost
- Projected extended disruption period of 2-3 years
- Potential long-term impact on airline’s service capabilities and profitability
Foran, after directly engaging with Rolls Royce and Pratt & Whitney, confirmed the lengthy disruption period.
Week Long Tour
CEO Greg Foran conducted a comprehensive week-long international tour, meeting with key industry representatives including:
- ATR turboprop manufacturer
- Airbus executives
- Multiple aircraft industry chief executives
Operational Insights:
- Supply chain challenges expected to persist for over two years
- Ongoing operational limitations costing approximately $150 million annually
- Significant impact on airline’s operational capabilities
Customer and Staff Response:
- Passengers maintaining booking commitments
- Staff demonstrating resilience during a challenging period
- Most originally booked services remain accessible
Financial Implications:
- Incomplete compensation for current disruptions
- Potential long-term financial and reputational challenges
Delays in Resuming Chicago Flights
Air New Zealand will keep the Chicago route suspended until the second half of 2025 due to ongoing engine availability challenges with Boeing 787-9 aircraft.
Scott Carr, General Manager of Long Haul, confirmed the decision previously and said that this enabled the airline to prioritize key network destinations and maintain customer travel arrangements.
The airline will also cut 2% of its domestic and regional seat capacity, impacting approximately 6,000 customers between February and June 2025. Most affected passengers will experience minor flight time adjustments. Wellington will undergo the most substantial schedule modifications, reflecting reduced travel demand.
Specific route changes include:
- Suspension of Invercargill to Wellington service starting January 19, 2025
- Reduction of over 100 seats on the first morning Queenstown to Christchurch flight from February 2025
- Downsizing Dunedin to Wellington route from jet to turboprop aircraft
- Decreasing Christchurch to New Plymouth weekly flights by three
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