Opinion: Air New Zealand is set to undergo leadership changes, since both chairperson Tony Carter and chief executive Christopher Luxon have chosen new directions for their respective career pathways.
Tony and Christopher depart after Air New Zealand's shareholder event on Wednesday, 25 September 2019.
Previously and something aspirational for graduate accountants to know, Dame Therese originally held an auditor position at KPMG.
Some 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 grow passengers for life.
This leadership transition Air New Zealand's board is now in, presents an option for them to get back to basics and establish some real brand emotion with passengers.
There are other possibilities such as to develop Panama airport as Air New Zealand's hub for Latin America, which provides easier entry into Central and South American countries 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 prospects.
It's fair to say Jetstar has grown since they began their low-cost airline within Australasia 15 years ago and throughout South East Asia.
As we know Jetstar flies from Auckland to Napier, Palmerston North and Nelson as well as New Plymouth. 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. In case Air New Zealand doesn't evolve Christopher Luxon's bold and brave decisions that did broaden perspectives for seven years then it risks additional market share to Jetstar.
Air New Zealand differentiates itself with pacific rim destinations and their hybrid-style market position for both low-cost passengers as well as national carrier markets.
For instance, Air New Zealand caters to price sensitive people and couples with Grab-a-seat whether they are younger professionals or at retirement as well as in between. Air New Zealand also focuses on premium travellers 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 practical value as well as supports Aoteroa New Zealand.
Air New Zealand would be best to distinguish itself from airlines worldwide and remove economy seats from their dual-aisle Boeing 777s and 787s then refit those aircraft with premium seats completely while still retain Skycouch that is innovative as well as business, which gives passengers something to aim for.
Delete the word economy from everyone's vocabulary at Air New Zealand because to label your primary market as 'economy' is not ideal for call-to-action nowadays, as marketers say.
Rename your main passenger section 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, which have additional capacity due to seasonal variation for domestic as well as international travel.
The 70-130 seat jet segment fits between Air New Zealand's turboprop planes with 50-68 seats and short-haul Airbus jets that vary from 165-214 seats. In other words, Air New Zealand doesn't fly 70-130 seat 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 aircraft fleet, which is after turboprops and before short-haul jets. In case Air New Zealand decides to fill this gap, what aircraft are available and where could they fly to for passengers?
Options for 70-130 seat aircraft manufacturers include Mitsubishi's new development jet, Bombardier aircraft subsidiary that Airbus corporation bought recently and Embraer Commercial Aviation that Boeing owns 80% of now.
Embraer has sold nearly 1000 jet aircraft from their first production series with 70-130 seats that have impressive safety, relability and pilots love to fly. Embraer's gone on to launch their second version (E2) and this is why Boeing corporation bought Embraer for $4.2 billion.
Air Canada flew Embraer E195 jets direct between Vancouver and New York return with up to 130 passengers onboard for years, which is about 5 hours 10 minutes one-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 operates their Airbus A320 between Auckland and Invercargill direct now, five days per week with 165 seats available. This new service is awesome for Southland and Auckland people to have options directly.
Why doesn't Air New Zealand lease one Embraer E190 E2 jet initially then test it direct from Invercargill 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 operation procedures.
Commercial test pilots did complete a full thrust take-off, windmill engine restart above 26000 feet and starter assist relight at 18000 feet as well as maximum acceleration from 8000 feet to simulate a runway landing misalignment.
This is quite possibly one of the last occasions we heard from Air New Zealand on biofuel and jatropha, we then 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 or part of it that also ensures product quality.
It's possible for Air New Zealand to build an algae facility near Auckland airport to produce biofuel for their aircraft by 2025, then supply star-alliance airlines and other airline companies that also land at Auckland International Airport.
In-Flight Entertainment and Passengers For Life
It is possible to have official partnerships with Airbnb, Netflix and Uber for first-mover advantage within the airline sector.
In addition to various hotels currently, Air New Zealand could also integrate Airbnb's platform for travellers to book unique local places and tours. For instance, Airbnb Plus properties could appear once passengers book airfares online at Air New Zealand's website.
Imagine if passengers could log into their Netflix account when they board aircraft, view the Netflix series they did start to watch at home and then finish it in an Airbnb for completeness.
Air New Zealand could link their app with Uber, it may simply be Uber's prominent logo symbol on Air NZ's app that transfers passengers to Uber within 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. In Air New Zealand's case, airport shuttle transfer services and Air New Zealand could pick-up as well as deliver passengers to airports without cost because it's built into passenger airfares.
For instance, Air New Zealand could utilise their current Mercedes-Benz fleet to test this idea and then every passenger has options to either share van rides with other people or some passengers may still transfer by themselves.
It's now possible for Air New Zealand's Boeing 787 aircraft to fly direct to Panama airport from Auckland, this provides people with far easier access for Central and South America as well as the Carribean islands.
Panama aligns with Air New Zealand's Pacific rim organisational plan and also when people from other countries see their nation's team play New Zealand sports teams, they are quite likely to fly Air New Zealand for an overseas visit here.
For instance, the All Whites versus Mexico (2013) and All Whites versus Peru also in Wellington matches (November 2017) both in Wellington did bring Mexican citizens as well as Peruvians to Aoteroa afterwards onboard Air New Zealand especially work holiday travellers.
Therefore, it's crucial Air New Zealand markets itself to sport generally within various international stadiums as well as at other different venues and not solely for rugby.
Aircraft require two pilots, it would encourage equality for society with one female and male pilot to fly every Air New Zealand flight.
Dynamic Air Transport Access
Air New Zealand originally had standby for team members to book flights, which Air New Zealand did adapt for students and passengers as well.
Rather than Grab-a-seat, Air New Zealand could relaunch standby airfares that merge spare aircraft capacity and provide access to air transport for people who may not necessarily be able to afford some Air New Zealand's fares. So then people don't revert to other airlines instead and for instance, Jetstar.
In summary, air travel opens people's hearts to gorgeous landscapes with views not seen before and cultures that have ancient depth. There are sights to amaze and unknown ancestors for discovery, magical gems as well as delicable food. To be up there for people reshapes destinies and reinvigorates life, which 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. Developers now have to balance interoperability, privacy and security as well.
Let's review these three key elements with real life scenarios to help clarify and understand the internet of things generally:
Interoperability impacts privacy and security, more interoperable devices reduce 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 and global position system (GPS) watch, an email web link could be sent to people who then see where the runner is for support and their speed as well as distance.
Mobiles and watches interact mostly by bluetooth or infrared signals 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 experiences 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 people 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 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 easily now, 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 from direct acts via interoperable communication links for data transfer.
With driverless car networks, cars will have to communicate so they know where every other car is along each point for safety especially at speed. Traffic intersection, road code and weather information would also have to be programmable.
What holds back autonomous vehicle systems currently 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 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 crashes possibly. 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 phone taxi companies, dial the local taxi company's landline number and then wait for taxi drivers to arrive. On most occasions we had to go outside and standby for taxis after we spoke with dispatchers, which wasn't ideal for passenger experience.
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.