Cruising: The depreciation of the New Zealand dollar has boosted international tourism numbers

The Airlines industry has grown over the past five years. Industry revenue is expected to rise by an annualised 2.3% over the five years through 2017-18, to reach $5.7 billion. This includes growth of 0.8% in the current year. The weaker New Zealand dollar since mid-2014 has encouraged overseas visitors to travel to New Zealand, boosting demand for lucrative long haul international flights. Demand for trans-Tasman flights has remained strong over the past five years. Air New Zealand, the industry's largest player, has traditionally maintained a strong market share on trans-Tasman routes. Over the past five years, foreign airlines such as Singapore Airlines, Emirates and AirAsia X have expanded capacity on these routes...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
2.3%
Forecast Growth 18-23
Profit
Employment
13,447
Businesses
30
Market Share of Companies

Industry Threats & Opportunities

  • Cheaper airfares have driven demand for domestic and international travel over the past five years
  • Competition on international routes has intensified, which has reduced airfares
  • Chinese tourists will be a strong growth market for the industry over the next five years
  • Industry Report - Industry Investment Chapter

    The Airlines industry has a high level of capital intensity. In 2017-18, for every dollar spent as wages, an estimated $0.36 is invested into capital. Airlines invest heavily to upgrade and maintain their aircraft fleet, improve online booking capabilities, enhance route plans and upgrade their IT systems. Industry players require experienced and well-trained pilots and engineers to maintain passenger safety and ensure flights embark on time. Due to the highly technical and specialised nature of this work, employees can often command a high salary. Airlines also need flight attendants, sales staff and other administrative workers to ensure flights run smoothly and customers are satisfied...purchase to read more.

    Additional Insights for the Airlines Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Airlines Industry are

  • Optimum capacity utilisation
  • Ability to expand and curtail operations rapidly in line with market demand
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and International travel by New Zealanders in the Airlines industry impact industry performance..

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    What's in this report

    What is the Airlines in New Zealand Industry?

    Industry players operate scheduled passenger flights to, from, and within New Zealand. The industry also includes airlines that operate scheduled domestic and international airfreight services.

    Industry Products
  • Long haul international flight services
  • Domestic and regional flight services
  • Trans-Tasman flight services
  • Airfreight transport services
  • Industry Activities
  • Domestic air passenger transport services
  • International air passenger transport services
  • Domestic airfreight transport services
  • International airfreight transport services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • International travel by New Zealanders
  • International travel to New Zealand
  • US dollars per New Zealand dollar
  • World price of crude oil

  • Current Performance
  • Industry structure
  • International route competition
  • Fuel prices and profitability
  • Aircraft upgrades
  • Chart: Revenue Growth

  • Industry Outlook
  • Tourism trends
  • Industry participation and profit
  • Airfreight
  • Future volatility
  • Table: Airlines Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Airlines Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Tourism in New Zealand

  • Key Selling Industries
  • Aircraft Manufacturing and Repair Services in New Zealand
  • Airport Operations in New Zealand
  • Catering Services in New Zealand
  • Petroleum Product Wholesaling in New Zealand

  • Products & Services
  • Long haul international flight services
  • Domestic and regional flight services
  • Trans-Tasman flight services
  • Airfreight transport services
  • Chart: Airlines Industry Products and Services Segmentation

  • Demand Determinants
  • Purpose of visit
  • Macro-economic factors

  • Major Markets
  • International tourists
  • Domestic tourists
  • Business and government travellers
  • Chart: Major Market Segmentation for the Airlines Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Airlines

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Airlines Industry

  • Industry Globalization
    Air New Zealand Limited,
  • Table: Air New Zealand Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Airlines Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Airlines Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Available Seat Kilometres (Asks)
  • The number of kilometres flown multiplied by the number of seats available over a given time period. Used as an indicator for an airlines’ available capacity.
  • Codeshare
  • An agreement between two airlines to share marketing and operating costs, often allowing consumers to book through one airline but travel on another airlines' flight.
  • Load Factor
  • A measure of an airlines’ operating efficiency, calculated as revenue passenger kilometres divided by available seat kilometres.
  • Long Haul International Flights
  • Flights that are typically longer than 5 hours in duration.
  • Passenger Yield
  • A measure of average return per kilometre flown, calculated as cents per revenue passenger kilometre.
  • Revenue Passenger Kilometres (Rpks)
  • The number of kilometres flown multiplied by the number of paying passengers carried on each flight. Used as indicator for an airlines’ volume.
  • Trans-Tasman Flights
  • Flights to and from Australia.
  • What Our Customers Say

    Why buy this report?

    The Airlines in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Airlines in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Airlines in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Airlines in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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