market change

Auckland Airport | April | 1Auckland Airport | April | 1

Market ChangeLet’s get ready!Asia - Australasia - Americas


Ambition 20203.5m+ Arrivals

• 1.5m from Australia• 900,000 from Asia• China 400,000 plus, Japan 100,000• Nth America 300k• UK back at 250k, Germany 80,000• Asia largest growth 450,000 ….35% higher than Australia Growth

*YE Dec 2011 2.6 million….Forecast 2016 2.99 million

Source: TFI/MED/AIAL


Longer Horizon View of Growth Potential

We still need to compete to captureSource: TFI/MED/AIAL


Asia will be our second largest market


Asia

Auckland Airport | April | 5

Of the world’s middle class by 2030

66%3,228 million

Of the world’s middle class by 203013%

635 million

The market is changing. Let’s work together to capture our share.

Numbers and spending of global middle class.2009 - 2030

2009 2020 2030

Source: OECD/AIAL


Source: IATA

With risk in Europe and US Airlines will Look to Asia

OECD’s assessment of the downside risk to GDP

2012 central forecast

2011

2012OECD scenario

Eurozone US China World


Cost rises are forcing changes

Each week IATA updates it’s jet fuel price index to provide the latest price data from the leading energy information provider Platts. The weekly index and price data shows the global average price paid at the refinery for aviation jet fuel.

This weeks’s prices of aviation jet fuel: Percentage change vs.

20 Apr 2012 Index* $/b Cts/gal $/mt 1 week ago 1 month ago

1 year ago

Jet fuel price 368.3 134.7 320.8 1061.9 -1.1% -2.6% -3.9%

Source: Platts. * 100 in 2000 (87 cts/gal)

Impact on this year’s fuel bill of the global airline industry:

New fuel price average from 2012

Impact on 2012 fuel bill

$135.1/b +$41 billion

Estimated by IATA Methodology


Rising Fuel Causing issue in Ultra Long Haul


AKL Routes


Ambition 2020$8.5b+ Value

• Asia will be largest value market worth $2.75 billion• China $1.5b plus, Korea $330m, Japan $300m • Australia $2.35 billion• North America $800m• UK $690m, Germany $290m• Indonesia $100m, Singapore $100m, Malaysia $100m

*YE Dec 2011 $5.76 billion….Forecast 2016 $6.6 billion

Source: TFI/AIAL/MED


Longer Horizon View of Growth Potential



Delivering $3 billion additional visitor spend

We still need to compete to captureSource: TFI/MED/AIAL


Economics

The wealth at top is growingSource: Capgemini,/Merrill Lynch/Knight Frank/AIAL


Asia Wealth Growth is Strong

We need to compete at that endSource: CLSA/Capgemini,/Merrill Lynch/Knight Frank/AIAL


Need to grow Mono NZ for Maximum Value

Building New Zealand Mono & Longer StaySource: TFI/MED/AIAL


Ambition 2020Key Pillars

• More Air Capacity with Emphasis on Direct/Hubs/Connectivity• Building Value to Ensure Sustainable Growth/Yield• Work with Industry on New Value Customer Segments• Develop Channel Partnerships• Expanding into New Growth Regions (China 2nd Tier, Indonesia, Perth etc.)

• Assisting with Industry Readiness & Developing Quality Position• Premium Value Partnerships


Ambition 2020China 430,000

• Grow Directs from 12 per week to 35 per week• New regional development through CZ/MU networks connects across

Asia• Work with Industry on New FIT segments/Development Corporate/MICE• Develop Channel build premium value and yield for airlines• GDP Growth 2012 +8.3%...• Market Share 0.8% 2020 v 2011 0.7% and 2010 0.6% (Total Outbound less HKG & Macau)

• Need to compete with Australia for Dual v Mono


Build Direct China Air Capacity to 35 Flights PW

We still need to compete to captureSource: TFI/AIAL/Sabre


Enabling us to Grow Share

We still need to compete to captureSource: TFI/MED/TA/AIAL

AUS 11:1 NZAUS 11:1 NZAUS 7.5:1 NZAUS 7.5:1 NZ


Harbin

Jinan

Nanning

Changchun

Ningbo

Haikou

Sanya

Taiyuan

Nanchang

Guilin

WenzhouChongqing

Tianjin

Kuming

Changsha

Hongqiao

Hangzhou

Zhengzhou

Xianyang

Wuhan

Xiamen

Nanjing

Shanghai

Beijing

Guangzhou

Shenyang

Fuzhou

Qingdao

Dalian

Chengdu

Growth in China City YE Feb 12 YE Feb 11 Growth

Shanghai 67907 69803 -2.7%

Beijing 57773 58682 -1.5%

Guangzhou 34689 13813 151.1%

Shenyang 6240 4877 27.9%

Fuzhou 5618 4650 20.8%

Qingdao 4317 3513 22.9%

Dalian 3942 3248 21.4%

Chengdu 3836 3049 25.8%

Nanjing 3682 2788 32.1%

Xiamen 3278 2858 14.7%

Wuhan 2728 2085 30.8%

Xianyang 2682 1795 49.4%

Zhengzhou 2476 758 226.6%

Hangzhou 2416 1713 41.0%

Hongqiao 2112 571 269.9%

Changsha 2053 1586 29.4%

Kuming 2042 1417 44.1%

Tianjin 1826 1104 65.4%

Chongqing 1392 1242 12.1%

Harbin 1332 500 166.4%

Jinan 1059 560 89.1%

Nanning 1036 441 134.9%

Changchun 787 344 128.8%

Ningbo 745 502 48.4%

Haikou 669 315 112.4%

Sanya 524 309 69.6%

Taiyuan 522 67 679.1%

Nanchang 495 173 186.1%

Guilin 450 285 57.9%

Wenzhou 361 80 351.3%

14M, Sichuan Province 80M, GDP USD 111 Billion Food , Medicine, Machinery, IT

8M, Liaoning Province 44M, GDP USD 77 Billion Heavy Industry, Aerospace, Machine Tools, Auto

7M, Fujian Province 37M, GDP USD 59 Billion Food Processing, Industrial Chemicals , Wood & Paper

9M, Shandong Province 96M, GDP USD 711 Billion ,Cotton, Wheat, Gold, Diamond , Sapphires, Petroleum, Wine

Source: AIAL/Sabre/AI


Competing at High End

We compete with Europe & Nth AmericaSource: AIAL/Sabre/GCM


Premium JV AIAL/ATEED/Trade


Premium JV AIAL/TNZ/Airline China

Building FIT & Value Market


Competitive Products地区 /Region 行程名字 /Name of the trip 前往国家 / 城市 Countries/Cities 价格 / 元 Price in

RMB 出发日期 Departure Date 酒店标准 Hotel Standard

欧洲 Europe

品味轩尼诗 , 意瑞法 ( 世纪冰河 , 世界酒庄 )12 天 Tast of Hennessy, Glacier, World famous winery, 12 days

瑞士、法国、意大利 Switzerland, France, Italy 18499-19199

2012-5-22 、 2012-6-14 、 2012-6-16 、 2012-6-22 、 2012-7-8 、 2012-7-12 、 2012-7-17 、 2012-7-22 、 2012-7-27

当地三星或四星 Local 3 or 4 star

欧洲 Europe

德意荷法瑞（郁金香花季，浪漫之路） 10 天 Tulip flower season, Romantic pathway, 10 days

意大利（米兰）、瑞士、德国、法国、比利时、荷兰 Italy (Milan), Switzerland, Germany, France, Belgen, Holland

13799-14199 2012-5-16 、 2012-5-29 、2012-6-13 、 2012-6-27


欧洲 Europe

翡翠王国爱尔兰英格兰（奥运场馆巡游）纯美 10 天 Kingdom of Jade, Ireland/England (Olympic Stadium), 10 days pure and beautiful

英伦三岛：英格兰、苏格兰、爱尔 England, Scottland, Ireland 18199 2012-5-29 、当地三星或四星 Local 3 or

4 star

欧洲 Europe 西班牙圆舞曲四星品味 10 天 Spanish 4 star 10 days

埃斯可里尔、塞哥维亚、巴塞罗那、马德里 Esk Lille, Segovia, Barcelona, Madrid

15199-16199 2012-5-26 、 2012-7-13 、 2012-7-27


欧洲 Europe

意瑞法 ( 依云镇 TGV 高铁 )四星 10 天 Evian Water town, TGV highspeed rail, 4 star, 10 days

法国、瑞士、意大利 France, Swissland, Italy 17499-18499

2012-5-21 、 2012-6-11 、 2012-6-16 、 2012-6-18 、 2012-6-23 、 2012-7-9 、 2012-7-14 、 2012-7-23 、 2012-7-30

当地四星 Local 4 star

欧洲 Europe德奥瑞（阿尔卑斯山之路） 10 天 Alps Road 10 days

瑞士、奥地利、德国 Switzerland, Austria, Germany 17199-17799 2012-6-16 、 2012-7-

13 、 2012-7-22当地三星或四星 Local 3 or 4 star


Premium Development


Building NZ Preference

Developing the Airline Preference for NZ


Thank YouLet’s get ready!Asia - Australasia - Americas

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