By Jeffrey Ng
Air New Zealand Ltd. (AIR.NZ) said Monday it is halting non-stop
flights from Hong Kong to London from March 4 next year amid
continued losses on the competitive route, a move that will result
in the elimination of around 70 London-based flight attendant
positions.
The decision to cancel the Hong Kong-London service was made
because the airline doesn't expect the route to turn profitable in
the foreseeable future, said Air New Zealand Rob Fyfe in a
statement.
New Zealand's flag carrier had been operating the service since
2006 as a continuation of its flight from Auckland to Hong Kong. No
commercial aircraft could operate profitably between the U.K. and
New Zealand because of the long distance.
Separately, Air New Zealand said it has formed a strategic
alliance with Hong Kong-based Cathay Pacific Airways Ltd. (0293.HK)
on the Auckland-Hong Kong route that will allow both airlines to
jointly operate with a codeshare partnership.
Air New Zealand's decision to cancel the Hong Kong-London
service follows a similar decision by Qantas Airways Ltd. to axe
that route in March this year due to keen competition. The
long-haul route is currently served by eight daily flights by four
airlines, including Cathay Pacific, British Airways and Virgin
Atlantic Airways.
Write to Jeffrey Ng at jeffrey.ng@wsj.com
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