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APRIL 2016

Week 14

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Air NZ announces Manila ahead of HCMC launch

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April 8th 2016

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Kiwi flag carrier Air New Zealand (Air NZ) is continuing its Pacific Rim expansion. The airline under the leadership of chief Christopher Luxon this week announced a new thrice-weekly B767-300ER service between its Auckland hub and Manila’s Ninoy Aquino from December. Read More » Manila will be Air NZ’s 32nd international destination.

"As the only non-stop service between New Zealand and the Philippines, our flight will be quicker and more convenient for travellers than the fastest current option which flies indirect, potentially saving up to two and a half hours each way," Luxon said with reference to Philippine Airlines’ (PAL’s) one-stop which operates four times a week via Cairns, using a single-aisle A320.

Luxon said the Filipino population in New Zealand has more than tripled since 2001 and is now the third largest Asian ethnic group, with around 40,000 Filipino residents in New Zealand. "The number of visitors from the Philippines is also continuing to grow rapidly, up more than 20% in the past year alone so we're anticipating that demand for this service will be steady in both directions."

Air NZ last November announced a thrice-weekly seasonal service to Ho Chi Minh City, also using the 234-seater B767, which will operate from June through to October.

The Star Alliance member last week issued a statement saying it is considering selling its 26% stake in Virgin Australia, and Luxon resigned from the Australian carrier's board.

Air NZ chairman, Tony Carter, said Air NZ does not want to retain a large minority shareholding in Virgin Australia as it focuses on its own growth opportunities. "Air New Zealand intends to coordinate its review of its investment in Virgin Australia with that airline’s broader capital structure review, and looks forward to continuing its strong relationship with Virgin Australia and working constructively together," the carrier said.

Analysts have since suggested that either Singapore Airlines (SIA) or Etihad Airways might increase their existing shareholdings in Virgin Australia, or that a Mainland carrier might be interested.

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