Air New Zealand May Expand U.S. Flights

Air New Zealand is urgently assessing the potential to expand its United States destinations in the wake of United Airline's decision to abandon plans to fly from Houston to Auckland.

But plans to add South America to the network are on hold.

Air New Zealand chief executive Rob Fyfe said United's decision opened several options for the airline which were being evaluated, including ports deeper into the U.S. and adding more flights to existing routes to Los Angeles and San Francisco. The United service would have been the first route to New Zealand using the new Boeing 787 Dreamliner.

Air New Zealand was to code share on the service, expanding its reach in to the US and was expected to attract 100,000 passengers a year.

United said it had scrapped plans to expand its Houston hub after the city's local authority decided to expand international services from its second airport.

Fyfe said Air New Zealand had been disappointed with Auckland International Airport's decision three years ago to "effectively subsidise" United's entry into a market that Air New Zealand had been working with Tourism New Zealand to grow.

The threat of the United service had put Air New Zealand's own U.S. expansion plans on hold. "We are now rapidly re-evaluating it," Fyfe said.

However, he said he was concerned at Auckland Airport's decision that it would try to attract another foreign carrier.

He hoped the airport would have an open mind to working with Air New Zealand "and not just be biased towards foreign carriers".

Air New Zealand's plans to add South America to the network have been hamstrung by the lack of a suitable partner airline needed to provide a feeder service on the continent, Fyfe said.

Argentinean flag carrier Aerolineas Argentinas will stop flying between Buenos Aires and Auckland at the end of this month. Fairfax NZ

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