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Air NZ ends unprofitable Sydney-Los Angeles service

By NZPA

Monday 10th February 2003

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Air New Zealand is ditching its unprofitable route between Sydney and Los Angeles, but will increase flights from Auckland.

The airline said in a statement today that it would suspend flights from Sydney to Los Angeles from April 27 in order to concentrate on its Auckland-Los Angeles service.

Air NZ will increase its flights from Auckland to 17 from the current 14 per week.

"We have not made this decision lightly -- quite simply our service between Sydney and Los Angeles is one of our least profitable," chief executive Ralph Norris said.

"However, we will continue to monitor the route and, if market conditions improve, we will be prepared to re-enter.

"Meanwhile, the United Airlines withdrawal from New Zealand as from April has opened up additional opportunities for our Auckland-Los Angeles operations."

The looming war in Iraq and uncertainty around approval of the alliance with Qantas had dissuaded Air NZ from bringing additional aircraft to service both routes.

Air NZ's Star Alliance partner, United Airlines, has retained its Australian services and both airlines will continue their code-share arrangement on Sydney-Los Angeles services.

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