Auckland Airport hails American Airlines’ Los Angeles-Auckland flights: Estimates $182 million boost for economy

The Auckland Airport management has welcomed the proposed American Airlines daily service between Los Angeles and Auckland, that will be starting in June 2016. The new service will have the latest Boeing 787-8 Dreamliner flying the route.

“The arrival of American Airlines is good news for New Zealand, especially for customers of the One-world alliance. It also increases airline choice on the Auckland to Los Angeles route and provides much-needed additional seats for the growing number of Americans and New Zealanders travelling between the two countries. We are working with American Airlines to ensure this new service is sustainable and grows tourism between our two countries,” Norris Carter, Auckland Airport’s general manager – aeronautical commercial, said in a statement.

The Auckland-Los Angeles route has been the monopoly of Air Zealand ever since Qantas stopped its service in 2012. The average Los Angeles-Auckland flight time is 13 hours. The new flight will be part of the emerging alliance between American Airlines and Qantas that is now awaiting regulatory approvals in both the US and Australia.

The Auckland airport estimates the new American Airlines service will boost seat capacity between New Zealand and the United States by 16 percent or 165,000 seats annually, and there will be NZ$199 million (AU$182.48 million) boost to the local economy per annum.

“The United States is one of the country’s most important visitor markets and travel destinations. In this year,(till 30 September 2015) around 237,312 Americans visited New Zealand, up 11% on the previous 12 months, and 178,720 New Zealanders visited the United States, up 14%,” Carter said.

He noted that American Airlines service will provide convenient connections between Auckland and 200 daily onward flights through Los Angeles and also improve access to the East Coast of the United States. Auckland will get connected to 57 destinations in the United States, Canada, Mexico and beyond to London and Sao Paulo.

Competitive trans-Pacific market

The US carrier’s chief executive, Doug Parker, said the direct daily flights between Auckland and Los Angeles will commence from the middle of 2016.

“Auckland is a thriving destination for business and leisure travelers, and it adds to the growing strength of our global network across the Pacific," Parker said in a statement, according to a CNN report.

Acknowledging that the new service will challenge its market share, Air New Zealand reacted cautiously.

“We're ready for it and we look forward to it," said Air NZ's CEO of the upcoming competition. Air New Zealand CEO Christopher Luxon said the increased competition on the route was not unexpected and help in boosting the New Zealand tourism market.

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