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CBAFF meeting with Air NZ
Received 7 July, 3.28pm

CBAFF has met with Air New Zealand representatives Rick Nelson, General Manager, Cargo and Alex Larsen, Global Sales Manager, Cargo to discuss member’s concerns about the new Standard Terms and Conditions of Booking (IAFC). 

Prior to meeting, Rick Nelson provided background to the IAFC agreement.

A number of points were made during the meeting that included: The current tranche of Government subsidy runs out at the end of October (the programme) The programme started with 36 flights/week and now comprises 52 flights – which represents 25% of the old network Expansion of the programme is driven by demand The programme also requires adequate backload of imports There is a quantity of imports moving to seafreight The government subsidy is also being applied to other airlines/carriers – Emirates; China Air; Freightways; Qantas and DHL Air NZ is not planning for long-haul passenger flights for the next 12 months It is expected that forwarders will mirror with their customers, the agreement with Air New Zealand The Government subsidy is tied to obligations in relation to the load factor The air cargo system is fragile Changing patterns of production, markets and consumption will have long-lasting effects on air-cargo The 72-hour deadline for decision on flight is tied to the level of impact on all bookings and the exposure to risk in the event of cancellation The airline is prepared to consider variations to the 72-hour cancellation provision, in return for other flexibility / increased freight rate Flexibility could include leniency around the volume of freight delivered against that booked; this may result in an increase in freight rate to compensate for the ‘lost’ booking; or the holding of dry cargo that can act as a filler Some flights carry re-patriation passengers whose airfares are paid to the Government If exporters are able to project capacity requirements, this can assist with planning for additional capacity Communication is vital in these ‘new’ times CBAFF will continue to meet with Air New Zealand to raise issues and progress initiatives and opportunities for members.
To facilitate increasing routes and frequency of flights, members are encouraged to talk with exporters, of perishable products particularly, to seek their projected capacity requirements.  This information in turn needs to be shared with Air NZ (Alex Larsen – alex.larsen@airnz.co.nz) and will be used to build a case to Government for further flights to be subsidised.

Do you want to see the 72-hour cancellation clause reduced and other flexibility to be built into the booking – e.g. if you book 500kg and deliver only 400kg? 

What additional surcharge would you and your customer be prepared to accept for flexibility on delivery of export cargo to the airline?

CBAFF would welcome your response to these questions, so that in turn, we can work with Air New Zealand to achieve an acceptable outcome.

Please email admin@cbaff.org.nz with your responses.

Collinson & Co Contact