Air New Zealand CEO Greg Foran was in good company when he announced that the airline is adding 30,000 more seats to Tokyo over the summer.
This week, the CEO of Air New Zealand, Greg Foran, is in Japan as part of a business mission led by the former CEO of Air New Zealand, now the nation’s Prime Minister, Christopher Luxon. Today Greg Foran announced that the airline is adding 30,000 more seats to its Tokyo services, brought about by using more Boeing 777s on the route.
A big boost for Tokyo services
While in Japan this week, Greg Foran announced today that Air New Zealand will add 30,000 seats to its Tokyo route from November to March, giving Japanese travelers more options to visit New Zealand. The full-service carrier is currently operating its Boeing 787-9 Dreamliners between Auckland and Tokyo Narita Airport but will increase seats by switching some services to the Boeing 777-300ERs.
The 787-9 Dreamliners are configured in a three-class layout of 302 seats, including 18 in business premier, 21 in premium economy and 263 in economy. The 777-300ERs have 342 seats, including 44 in business premier, 54 in premium economy and 244 in economy. The additional forty seats are one thing, but the gain of 49 premium seats offers the airline the real advantage in bumping up its yields.
Operating with 777s means that 29% of the capacity is in the premium section, compared to 13% on the 787-9s operating the route today. Air New Zealand’s challenge is to capture more premium travelers between Japan and New Zealand to keep its loads high, although, given the airline’s renowned service standards, that is highly likely.
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Foran said that the increase in capacity reflects the demand the airline is seeing, and it will boost economic growth in tourism for New Zealand, which would have been music to the ears of his esteemed traveling partner. Japanese travelers are extremely important to the New Zealand economy, and before the pandemic, more than 100,000 visitors arrived from Japan annually. Foran added:
“Adding the 777 to more of our Tokyo services means there are more seats available in premium cabins and that customers may experience our newly refreshed aircraft, which includes new seat covers and updated soft products like pillows and blankets. Tourism has been a little slower to return from Asia but we’re now seeing that pick up, so more premium seats means more options for customers.”
Part of an Asian Push
When travel restarted, Air New Zealand quickly launched and resumed routes between North America and Auckland, operating a mix of Boeing 777-300ER and 787 Dreamliner flights across the Pacifc. Its agile approach resulted in an exceptional 2023, but this year is proving tougher as significantly more competition on the routes has pushed margins and loads down.
With the peak summer season in New Zealand running from November until March, Air New Zealand is also ramping up capacity to Singapore and Taipei. From November 2024 until March 2025, an additional 20,000 seats will be added to the Auckland to Singapore Changi Airport (SIN) route, 11,000 of which are in business premier or premium economy.
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Passengers traveling between Auckland and Taiwan Taoyuan International Airport (TPE) will have 7,500 additional business premier and premium economy seats to choose from. The flights between Auckland Airport (AKL) and Singapore are operated with a mix of 777 and 787-9 aircraft, while the route to Taipei is currently flown with the 787-9 Dreamliner.
The premium cabins have been very popular with customers traveling to and from Singapore, Tokyo and Taipei, which is why Air New Zealand is adding more premium heavy aircraft to these routes over the peak summer period. The airline has been agile as it moves on from the extended lockdowns imposed in New Zealand, and by switching more premium seats into these popular markets, it is making sound network choices.
Source: Simple Flying