By Karen E. Thuermer, AJOTA big difference between Air New Zealand and some of its competitors isn’t the fact that the carrier is government-owned, but that it is run like a business instead of some government bureaucracy. “Owned 80% by the New Zealand government since the fallout of Sept. 11, the carrier is not subsidized at all,” says Sal Sanfilippo, North American director for Air New Zealand Cargo. This has not stopped the airline from carving out a nice business, however. In fact, it has probably helped. With its homeland of New Zealand so far off the beaten track, the carrier has grown to offer top notch service. Air New Zealand benefits most by being a niche player. During a visit with Air New Zealand Cargo at the carrier’s office in Los Angeles, Sanfilippo describes the benefits of being a niche player, particularly in servicing the North America - South Pacific - Asia - Europe lanes to and from New Zealand. “Our airline serves a smaller market than most carriers,” he says. “But I believe this gives us the right balance and a stable form of price points.” Adding to its advantages, in April Air New Zealand commenced dedicated twice weekly B-744 freighter service from Auckland, Melbourne, Shanghai, Frankfurt, Chicago, and back to Auckland utilizing leased equipment from Atlas Air. “The new service enables us to offer several market segments we did not previously service, and opens up opportunities for exporters to develop business in several major worldwide markets,” Sanfilippo says. The B-747-400 freighter also provides Air New Zealand customers the most functional freighter aircraft currently available. “This is an exciting venture for us with considerable commitment on our part to provide capacity and service to some of the key air freight markets worldwide,” he says. The new service is considered a welcome expansion for the business, and one that will better support New Zealand exporters. “Our new service incorporates Shanghai, which is a significant cargo hub, to our network,” Sanfilippo adds. “This will provide New Zealand exporters with a regular service into China, in particular the always high demand export China market. Air New Zealand Cargo will also gain significant benefits from operating a China - Europe - USA route.” Air New Zealand Cargo also operates internationally through the provision of cargo capacity on the Air New Zealand international network and has a team of cargo professionals based at hub airports around the world. The new service replaces a round-the-world MD11 freighter service that was run in partnership with Lufthansa German Airlines. As Sanfilippo explains, “Years ago we shared capacity with Lufthansa. But as margins began to shrink, we realized we had to have more complete control of our costs. Today we manage the route for ourselves and we know—when put on equal footing with the competition—that our people will make the difference.” Besides this latest freighter development, the carrier also operates a modern fleet of 747-400s, 767-300s A320s, and 737-300s that provide wide body capacity across four continents and domestic services that crisscross New Zealand’s domestic market. “We are also buying 777and 787 equipment that will not only greatly enhance the services on the passenger side but gives us more enhanced opportunities on the cargo side,” Sanfilippo says. Air New Zealand’s Singapore-Auckland route will be the first in Asia to utilize its new Boeing 777-200ER aircraft. The 777 will begin operating with a daily service between Auckland and Singapore on January 25, 2006, in time for the busy Chinese New Year period. “The Singapore route will become only our second dedicated 777 route after San Francisco that will see its Auckland - San Francisco frequencies double starting November 2005,” he adds. “Air New Zealand’s ability to provide a superior long-haul in-flight product to this market is critically important for the ongoing growth of this route.” Auckland, New Zealand operates as th