The New Zealand Government has given the go-ahead to a five-year continuance of the NZ-SQ joint alliance until March 2029, which will see better network access, value and options for passengers and may offer some relief for Air NZ’s aircraft issues.
Across the 10-year partnership, seat capacity between NZ and Singapore has grown almost 50 per cent, including up to three daily Auckland-Singapore flights and a daily service between Christchurch and Singapore.
Subject to regulatory approval, the JV partners will operate four daily seasonal services between Auckland and Singapore from 27 October 2024 to 29 March 2025.
This means 38 jointly operated return services per week between NZ and Singapore during the peak holiday season, translating to more than 893,000 seats annually.
SQ’s Acting Senior Vice President Marketing Planning Dai Haoyu said the fourth daily seasonal service will support growing business and leisure travel demand.
With Singapore a major hub for Kiwi travellers, Air NZ Chief Transformation & Alliances Officer Mike Williams said the partnership helps connect New Zealand to the world, carrying 4.6 million-plus passengers between New Zealand, Singapore and beyond through the alliance.
Air New Zealand reports profit against headwinds
The NZ-SQ regulatory approval comes as NZ’s national carrier reported a healthy first-half FY24 EBITDA profit of NZD$185 million (around AUD$173 million) but faces headwinds due to supply chain issues affecting aircraft maintenance and grounding planes.
While passenger revenue was NZD$3.1 billion (around AUD$2.9 billion) – up 21 per cent on 1HFY23 – the 38 per cent drop in EBITDA against the same period was expected as Air NZ recorded one of its highest-ever results after borders reopened.
Air NZ Chair Dame Therese Walsh said the half-year result represents the hard “mahi” of the Air NZ whānau in the face of unavoidable challenges.
“We knew this year would be tougher than the last when pent-up levels of demand and industry-wide capacity constraints drove one of the strongest financial results in our history,” she said.
“On top of these operational challenges, we are now leaning into the reality of a worsening revenue and cost environment, which will have a significant adverse impact on performance in the second half.
“Despite these short-term challenges, the airline is in a fundamentally strong position.”
Find out more at airnewzealand.com
