11 June 2009

Show us the money

AUCKLAND Ã¢â¬' Air New Zealand is calling for more investment in China from the countryÃ¢â¬â¢s tourism sector.

Ed Sims, Air NZ group general manager, international airline, said Air New Zealand is spending NZ$10 million a year on promotion in China compared with Tourism New ZealandÃ¢â¬â¢s spend of NZ$6 million over three years.

Ã¢â¬ÅâœThe New Zealand industry has to get serious about its investments in China. We think it should be more ambitious," said Sims.

Ã¢â¬ÅâœIf you donÃ¢â¬â¢t invest seriously in China, the market can become unprofitable very quickly. We donÃ¢â¬â¢t want to be the lone voice.Ã¢â¬~

Air NZ flies three times a week to Shanghai and twice a week to Beijing. It aims to expand to daily services.

Sims said that the airline has had to step back from its promise to launch one new long-haul route each year, and would not launch a new route in the next financial year.

Beijing, launched last year, is edging towards profitability, he said.

Ã¢â¬ÅâœWith China in particular you look at a three-year life cycle for profitability.

Ã¢â¬ÅâœWe launched Shanghai three years ago and weÃ¢â¬â¢re seeing good profitability. Beijing is still in its infancy but we believe it will be a better tourism traffic opportunity than Shanghai.Ã¢â¬~