Opinion: Air New Zealand is set to undergo leadership changes since chairperson Tony Carter and chief executive Christopher Luxon have chosen new directions for their respective pathways.
Both Tony and Christopher depart on Wednesday, 25 September 2019 at Air New Zealand's shareholder event.
Previously and something aspirational for graduate accountants to know, Dame Therese had an auditor position at KPMG.
Possible challenges that could be ahead for Air New Zealand include how to recover market share from Jetstar, reduce carbon emissions and enhance in-flight entertainment as well as develop passengers for life.
This leadership transition Air New Zealand's now in is an option to get back to basics and establish some real brand emotion with people then help accelerate Aotearoa regionally for endurable impact.
There are other possibilities such as to develop Panama as Air New Zealand's hub for Latin America, which provides easier travel to Central and South America as well as the Carribean islands. Gender equality for pilots and dynamic air travel access to help people are relevant issues.
Air New Zealand may also have gaps in their aircraft fleet and for instance, the 70-130 seat jet segment that aircraft manufacturers seem to believe has growth prospect.
It's fair to say Jetstar has grown since Qantas began their low-cost airline 15 years ago within Australasia and throughout South East Asia.
As we know Jetstar flies from Auckland to Napier, Palmerston North and New Plymouth as well as Nelson. These four newest routes for Jetstar in New Zealand to and from provincial regions may seem insignificant yet when international airlines operate this locally then it is serious.
It's key not to overreact, rather respond with creativity and dynamism. If Air New Zealand doesn't evolve Christopher Luxon's bold and brave decisions that did broaden perspectives for seven years as well as Rob Fyfe's foresight then it risks additional market share to Jetstar.
Air New Zealand differentiates itself with pacific rim destinations and their hybrid-style position for both low-cost passengers as well as national carrier markets.
For instance, Air New Zealand caters to price-sensitive travellers and couples with Grab-a-seat whether they are younger professionals or at retirement as well as families in between. Air New Zealand also focuses on premium and business passengers due to multiple airfare variations available for purchase.
To get back to basics for reference isn't to be both low-cost and the national carrier, rather an airline that provides premium value as well as supports Aotearoa New Zealand practically.
Air New Zealand would be best to distinguish itself from airlines globally and remove economy seats completely from their dual-aisle Boeing 777 and 787 aircraft then refit those aircraft with premium seats entirely while still retain Skycouch that is innovative as well as business, which gives poeple something to aim for.
Delete economy from Air New Zealand's vocabulary and to label your primary market as 'economy' is not an ideal call for action nowadays.
Rename economy to premium in entirety, wrap quality advertisement around it and follow this up with incredible service for passengers from Air New Zealand team members as well as loyalty that emulates Qantas.
70-130 Seat Jet Segment
Air New Zealand has two propellor (turboprop) aircraft types for provincial region routes, Bombardier Q300s with 50 seats and Aerospatiale ATRs that have 68 seats.
Air New Zealand's next aircraft set is short-haul jets, specifically Airbus A320 NEOs (New Engine Option) with 165 seats and original A320s with 168 seats that fly to New Zealand domestic cities, Australia as well as the Pacific islands.
Air New Zealand also has A320s with 171 seats and Airbus A321 NEOs with 214 seats that have additional seat capacity due to seasonal variation for domestic as well as international flights.
The 70-130 seat jet segment fits between Air New Zealand's turboprop planes with 50-68 seats and Airbus jets that vary from 165-214 seats. In other words, Air New Zealand doesn't fly 70-130 seat short-haul jets and this could be another option to maximise return on investment for shareholders.
Therefore it may be said that Air New Zealand has gaps within their fleet after turboprops and before Airbus jets, in case Air New Zealand decides to fill this gap then what aircraft are available as well as where could they fly for passengers?
Options for 70-130 seat aircraft manufacturers include Mitsubishi's new development jet and Bombardier Aerospace, which Airbus did partner with recently as well as Embraer Commercial Aviation that Boeing owns 80% of now.
Embraer has sold nearly 1000 jets worldwide with 70-130 seats from their first production series that have impressive safety and reliability, which pilots love to fly.
Embraer's gone on to launch their second generation 70-130 seat jet version (E2) and this is why Boeing bought Embraer for $4.2 billion.
Air Canada flew Embraer E195 jets with 130 seats direct between Vancouver and New York return for years to develop this route that is 5 hours 10 minutes each way.
Embraer's E190 E2 jet could fly directly to Australia from some domestic provincial region airports in New Zealand such as Hamilton, Tauranga, Rotorua, Napier, Palmerston North, Dunedin and Invercargill.
Air New Zealand now operates an Airbus A320 directly between Auckland Airport and Invercargill five days per week, which is awesome for people in Southland as well as Auckland to have options.
Why doesn't Air New Zealand lease one Embraer E190 E2 jet initially then test it from Invercargill direct to Auckland return for passenger evaluation?
50% Biofuel by 2025
Air New Zealand flew their Boeing 747 for two hours on 30 December 2008 with 50% jatropha and 50% aviation fuel in one of four engines while the 747 underwent normal operating procedures.
Commercial pilots did complete a full thrust take-off, windmill engine restart above 26000 feet and a starter assist relight at 18000 feet as well as maximum acceleration from 8000 feet to simulate a runway go-around.
This is quite possibly one of the last occasions we heard from Air New Zealand on biofuel and jatropha then we got their sustainability report for review instead.
Aviation biofuel is where Air New Zealand could vertically integrate, which is when companies produce their supply chain to ensure product quality and cost effectiveness.
Air New Zealand can build an algae facility near Auckland Airport to produce biofuel for their aircraft by 2025 as well as supply Star Alliance partners and other airlines that land at Auckland International Airport.
In-Flight Entertainment and Passengers For Life
There are options to have official partnerships with Airbnb, Netflix and Uber for first-mover advantage.
In addition to hotels, Air New Zealand could integrate Airbnb's service for travellers to book unique local places and tours. For instance, Airbnb Plus properties can appear after passengers book airfares online at Air New Zealand's website and this enables people to stay locally.
Imagine if passengers could log in to their Netflix account when onboard aircraft, watch the series they view at home and then complete it in an Airbnb for seamless interaction.
Air New Zealand can link their app with Uber and it may simply be Uber's prominent logo symbol on the Air NZ app, which switches passengers over to the Uber app that is already on many people's mobile phones for quicker transport from airports.
Horizontal Integration and Panama Hub
To integrate horizontally is when companies provide customers with similar core products and in Air New Zealand's case it's airport transfer services. Air New Zealand could pick-up passengers from their residential or workplace locations and then deliver people to airports without cost because it would be built into airfares.
Air New Zealand can utilise their current Mercedes-Benz van fleet to test this idea and then every passenger has an option to share free shuttle rides with other people while some passengers would still transfer themselves.
Air New Zealand could fly their Boeing 787 and 777-300ER (Extended Range) aircraft direct from Auckland to Tocumen International Airport in Panama. This route provides passengers with numerous flights onto Central and South American countries like Puerto Rico, Costa Rica, Colombia, Venezuela, Ecuador and Cuba as well as the Carribean islands especially the Bahamas. Panama aligns with Air New Zealand's Pacific rim airline plan.
When people from other countries see their national sports teams play New Zealand teams then they are likely to fly Air New Zealand for travel. After both the All Whites versus Mexico (2013) and Peru (2017) football matches at Westpac Stadium in Wellington, Mexican citizens as well as Peruvians did travel to Aotearoa with Air New Zealand notably work holiday travellers.
Therefore it is crucial Air New Zealand markets to sport generally as well as non-sport events at various international venues, theatres and locations.
Aircraft require two pilots, it would encourage gender equality for society with one female and male pilot to fly every Air New Zealand flight.
Dynamic Air Travel Access
Air New Zealand's standby software was originally for team members then students and people already at airports were able to go on standby as well.
Air New Zealand could relaunch standby airfares, which merges spare seat capacity and provides dynamic air travel access for passengers who don't have the budget to pay Air New Zealand's fares. So they don't revert to another airline and for instance, Jetstar.
In summary, air travel unlocks people's hearts and minds then opens their eyes to gorgeous landscapes with unseen views as well as cultures that have ancient depth for strength. There are magnificent structures to amaze, delectable foods that tantalise taste buds and unknown archaeological ancestors for discovery.
To be up there for passengers shapes destinies, reinvigorates life and puts people on different trajectories.
Finally and remember to aim for the stars then in case we miss, let's land along the milky way. Search for epic adventures, journeys and travel at: wheretonext.nz
Advancement in broadband, mobile and wearable technologies have driven the internet of things.
The internet of things is devices, sensors and servers that interact to process as well as transfer information with broadband networks.
Technology developers usually review cost, quality and timeframe for new products. Now developers also have to balance interoperability, privacy and security as well.
Let's review these three new key elements with real life scenarios to help clarify and understand the internet of things generally:
Interoperability impacts privacy and security, more interoperable devices reduces privacy and security while less interoperability retains privacy and security. This is what technology developers primarily focus on.
For instance, your fitness watch syncs with your mobile phone that then activates apps to post on Facebook and Instagram as well as shares your present location.
When someone runs with their mobile phone and global position system (GPS) watch, they could email web links to people who are then able to see where the runner is for support as well as their speed and distance.
Mobiles and watches interact mostly by bluetooth signal when they are in close proximity, sensors help to locate devices accurately while broadband networks transfer information then servers store this data somewhere.
The internet of things requires open formats and standard files for technology companies to utilise, so different components integrate universally. The value from wearable, mobile and broadband technologies is their capacity as well as capability to arrange information then transfer it fast.
Therefore, it's crucial to have interoperable technology otherwise it isn't the internet of things and although open source community software may have some unknown vulnerabilities it does encourage innovation as well as transparency.
It is ideal for developers to design protection into the internet of things from the start, which balances interoperability with privacy and security.
Information technology doesn't have to know everything about people for optimal product interaction and quite often we share too much detail that doesn't bring tangible advantage, so we put ourselves at risk unnecessarily.
To sync everything at home may seem like fun, but it could provide the possiblity for someone to breach your privacy and security.
The internet of things in automotive, medical and social sectors requires quite specific insight to provide results. This information is usually private and sensitive, who's responsibility is it to ensure that the internet of things records enough data for quality outcomes while not to overdo it?
Also, who defines what is private information with the internet of things and how much to share for reference?
Mobiles pair with vehicles seamlessly nowadays, doctors could legitimately review patient information on their phones before appointments and then sync their mobile to cars.
Your doctor's car doesn't have to store medical information, how do we ensure vehicle manufacturers and perhaps even service technicians at workshops don't inadvertently access patient detail when they scan vehicles for faults?
The key is awareness when people unbox technology and create accounts, so they know what to disclose as well as how much for productivity.
The internet of things is quite prone to misuse, both accidentally and by direct acts from interoperable communication links for data transfer.
With driverless car networks, cars will have to communicate so they know where each other is for safety especially at speed. Traffic intersection, road code regulation and weather patterns would also have to be programmable.
What currently holds back autonomous vehicle systems is driverless cars don't know where they are when it rains torrentially and also in some instances, if direct sunlight reflects onto certain surfaces then laser radar (Ladar) car sensors can't detect those objects yet for some reason.
There are many other technology development issues to resolve before driverless cars are readily available, which probably won't be before 2030 and they may not be mainstream until after 2050.
Autonomous vehicle systems are as strong as their weakest link, someone may remotely tap into and reroute car navigation units that could cause delays for passengers as well as possible crashes. These are some potential scenarios to know, anticipate and prepare for with the internet of things.
In summary, Uber combines mobile phone and global position system (GPS) technology as well as broadband for point-to-point transport.
Remember when we had to call taxi companies, dial the local taxi company's phone number and then wait for taxis to arrive. On most occasions we had to go outside and standby for a taxi after we spoke with the dispatcher, which isn't ideal for passenger service.
Now we're able to easily request and find taxis that are also cost effective in over 60 countries (400 cities) globally with Uber's reliable app as well as the internet of things.