At CAPA 2019 – Cullam Murchison, Brent Thomas, both House of Travel; John Staub AirPlus International At CAPA 2019 – Cullam Murchison, Brent Thomas, both House of Travel; John Staub AirPlus International

NZ's Wallace: Legacy carriers set to challenge LCCs more

Air New Zealand and other legacy airlines are increasingly looking at 'micro-segmentation' in their cabins and taking price sensitive customers more seriously, says Air New Zealand's chief revenue officer, Cam Wallace.
Speaking at today's CAPA NZ Aviation and Corporate Travel Summit, Wallace pointed out that when the airline introduces its new Economy Stretch option it will have five distinct products aimed at specific market segments (along with Business Premium, Premium Economy, Skycouch and standard economy).

'We see a willingness from people to pay for a bit more legroom. People will get noise cancelling headphones and a special pillow, but the majority of the offering is around extra legroom.'
Wallace expects the added concentration on economy products by legacy carriers to put pressure on 'naked low cost carriers', rather than those that have a portfolio of airlines (Qantas and Jetstar; Singapore Airlines and Scoot) that are 'robust and are more about customer segmentation.
'Legacy carriers have been doing a poor job looking at all areas. We have been focusing on the premium cabins but we are now just as focused on the segment that is purely price sensitive. We have been doing it on the Tasman with seats to suit but now we will seek to compete with long haul low cost carriers.'

ProMag