n the financial year of 2016, Air New Zealand made earnings prior to tax at 806 million dollars increasing by 70 per cent since the last year. After taxation, the value of statutory net profit was 463 million dollars increasing by 42 per cent since the last year. The recorded result was specifically driven by the factor of strong growth in capacity (Österle, 2013). This reflected a trend of significantly declining prices of fuel and benefit of operational efficiencies and scale economies.
Air New Zealand is not the only company launching new services and the company has started to experience major competitive rival as a result of international carriers. The key belief is that extra services are important and beneficial for the market in case of demand. This is also specific when tourism bodies and tourism service providers work collaboratively for the growth of markets (Wu & Cheng, 2013). By making investment in aspects such as high level of servicing, airport kiosks, lounge up gradation and fleet, the company is strongly positioned to operate and compete.
With the long haul business of Air New Zealand, the key challenge being faced by the business was in the attraction of international tourists. However, the strategy was to ensure this in a manner that the needs and imaginations of the new travellers were highlighted and presented in front of them (Juwaheer, 2009). Air New Zealand understood the need of its progressiveness as a global airline with the assured competitiveness of cost strategy. This was not for merely achieving the parity of product, but exceeding the expectations of customer by the development of a distinct experience for the initiation of sale and profitability. The company drove its success with the clear intention to target the international market of tourists with a number of different tourism related services and products (Österle, 2013). They used to seek out new experiences with the involvement of interaction and engagement, and the demonstration of respect for the cultural, social and natural environment. As a result, global airlines started to work really hard for the differentiation of their market offerings by using a number of different levels of customization and aircrafts to ensure the enhanced creation of value. The global industry understood the simplicity of this fundamental base to create value by the alignment of partners and staff members.