Flying solo: Air New Zealand dominates the market despite increasing competition

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 2018-19, to reach $6.5 billion. This includes growth of 2.5% in the current year. The weakened 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 14-19
2.3%
Forecast Growth 19-24
Profit
Employment
14,577
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
  • Increasing tourism from China will provide growth opportunities for the industry
  • Industry Report - Industry SWOT Analysis Chapter

    The Airlines industry is in the mature stage of its economic life cycle. Industry value added, which is used to measure an industry's contribution to the overall economy, is forecast to grow by an annualised 1.9% over the 10 years through 2023-24. The growth rate indicates that the industry has underperformed GDP, which is expected to grow at an annualised 3.0% over the same period. This underperformance of the wider economy is indicative of a mature industry.Industry players have begun to expand their route capacity over the past five years due to increased demand for domestic tourism. Stronger competition, particularly on the trans-Tasman and regional routes, has also contributed to rising establishment numbers over the period. Thi...purchase to read more.

    Additional Insights for the Airlines Industry

    IBISWorld has determined the most important Key Success Factors for the Airlines 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
  • Trade-weighted index
  • 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
  • Business and government travellers
  • Domestic tourists
  • 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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.
  • 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?

    IBISWorld’s Airlines in New Zealand market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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