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With 15% of its 70-aircraft jet fleet grounded and its costs increasing, Air New Zealand is facing quite a few challenges, not of its own making.

Worldwide engine maintenance issues affecting Boeing and Airbus have forced the grounding of some of Air New Zealand’s Boeing 787-9 Dreamliner fleet and a few of the Airbus A320 planes the carrier uses to fly the Tasman and New Zealand domestic routes.

The situation hasn’t been helped by a recent decision by competitor Qantas to bolster its New Zealand and Australian operations with an extra 13 A320 aircraft, deriving mainly from Qantas’ Jetstar Asia business, which is being closed.

In a compelling Kōrero session at MEETINGS 2025 in Auckland, Kiri Hannifin, representing Air New Zealand on its 85th anniversary, made clear that the airline remains committed to chief executive Greg Foran’s vision and robust five-year plan.

Recent investments by Air New Zealand include new A321neo and ATR aircraft, with 787s arriving from February. To mitigate supply chain issues, Air New Zealand is leasing aircraft at significant expense while retrofitting its existing 787 and 777 fleets.

Hannifin, Air New Zealand’s Chief Sustainability and Corporate Affairs Officer, delivered a comprehensive overview of the airline’s challenges, investments, and plans.

Emphasising New Zealand’s critical reliance on aviation, second only to a handful of countries globally, Hannifin outlined Air New Zealand’s current struggles.

Infrastructure investments extend beyond aircraft, encompassing a new Auckland hangar, overhauled digital systems including a six-second rebooking tool, and improvements in safety, leadership training, and operational systems.

The airline has even developed a wine specifically for high-altitude consumption, underscoring its attention to customer experience. The wine, suitable for drinking at 39,000 feet, is also said to be tasty at ground level. Peter Needham of EGT Media will be testing it shortly at MEETINGS.

Sustainability forms a cornerstone of Air New Zealand’s strategy. As one of only five airlines globally to voluntarily purchase alternative fuels, the airline aims to become a leading buyer by 2030. This initiative addresses projections that aviation could account for 25% of global emissions by 2050, a daunting challenge for the aviation industry.

Air New Zealand has committed NZ$1.2 million to community projects, including the Century biodiversity protection and flood recovery support in Nelson. The airline also self-imposes carbon taxes on select flights, reinvesting in nationwide reduction projects.

Supporting the business events sector, Air New Zealand introduced the Kyoto Conferences booking tool, initially connecting Australian delegates to New Zealand, with plans to expand to North America. The airline conducts familiarisation tours across the country, including recently Palmerston North, to showcase its event hosting capabilities and stimulate local economies.

Hannifin concluded by acknowledging current capacity constraints while expressing gratitude for the business events sector’s vital contribution to New Zealand’s economy and communities. She reaffirmed Air New Zealand’s unwavering commitment to long-term growth, sustainability, and its role as a crucial component of New Zealand’s infrastructure and global connectivity.