9 Dec 2024

'Terrible' reality is up to three more years of delays in aircraft supply, maintenance - Air NZ

7:35 pm on 9 December 2024
Greg Foran, Air New Zealand jet

Photo: RNZ

Air New Zealand is facing another two to three years of disruption waiting for new aircraft and maintenance, its chief executive says.

It was "terrible" to contemplate but for some time Greg Foran had suspected this would be the case, he told Checkpoint.

The disruption is also ready costing the airline as much as $150 million annually.

It has been a turbulent year for Air New Zealand with the national carrier dealing with ongoing engine maintenance issues, a backlash over prices, cuts to some regional routes and falling profits.

MPs and some mayors have criticised the airline for cuts to what they say are "vital" services to the likes of Rotorua and Gisborne.

Air New Zealand has been forced to suspend its direct flights to Chicago over maintenance issues with the Rolls Royce Trent 1000 engines on its 787 Dreamliners following concerns of premature wear and weakness.

As of last month four of its 787s were out of action.

That's on top of maintenance issues with Pratt and Whitney engines on other aircraft.

Foran who has been just returned to New Zealand from visiting Rolls Royce and Pratt and Whitney said the disruption would carry on for at least another two to three years.

"I know that sounds really really terrible but that happens to be the fact of it."

On his week-long visit overseas he had also met with representatives of turbo prop manufacturers ATR and Airbus, as well as several aircraft industry chief executives, he told Checkpoint.

"She's pretty tough out there in the supply chain at the moment and it will be another two plus years before some things are resolved."

The airline had already indicated about six months ago that the limitations on its operations were costing about $150 million annually.

It was also a challenge for Air New Zealand's reputation, however, customers were sticking with it and airline staff were also responding well, Foran said.

Most passengers could still access services they booked for originally, he said.

However, the airline would not be fully compensated for the disruptions.

Resuming London flights on the radar

A Boeing Dreamliner 787-9, from the Air New Zealand fleet.

Photo: Supplied / Air New Zealand

While it wanted to resume flying to London next year, he believed it might "struggle" to get the aircraft it needed for the service so it might be delayed until 2026.

Air New Zealand had applied successfully for slots for Gatwick but definitely wouldn't be ready for the April date it had been offered.

It would have to use 787 aircraft rather than the bigger 777 and customers wanted direct flights so the preference was to wait for bigger aircraft from Boeing.

When the flights eventually started a stop-off in Los Angeles would be favoured rather than New York, Foran said.

All new aircraft for international services would be fitted with Airnests while the first of 14 aircraft has been retrofitted in Singapore which Foran inspected on his recent trip.

Once aircraft took to the air early next year with the four-hour sleeper pods it would be "sensational" for travellers, he said.

He expected the cost to be around $400 extra.

Foran was also insistent the service to Chicago would resume although it was dependent on Boeing for the delivery of new Airbuses.

Domestically, government spending on flights had dropped about 25 percent while corporate was down about 10-12 percent.

This had led to the reluctant decision to reduce some services, especially those in and out of Wellington, announced last week.

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