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Customers + Partners<br />

17,000 kilometers away from Auckland, the CF6-80C2 engines are supported by <strong>MTU</strong>’s maintenance facility in Hannover.<br />

The company realigned operations at a<br />

breakneck pace. When it introduced Boeing<br />

777-200ERs into service in November 2005,<br />

it significantly changed its long-haul course,<br />

with eight of the large twin jets today based<br />

at Auckland. The interior of the transports,<br />

too, saw some radical changes, the firstclass<br />

configuration being scrapped on long<br />

routes in favor of a new Business Premier<br />

setup in which the seats are configured in a<br />

herringbone layout. They extend into<br />

absolutely flat beds 2.07 meters long and<br />

compartmented by high vertical walls on<br />

either side. Also, the route network was<br />

cleared out, with unprofitable routes like that<br />

to Singapore being canceled and new promising<br />

destinations added, notably the new<br />

Shanghai route. Since October 2006, Air<br />

New Zealand has been flying around the<br />

world. In Europe, it traditionally serves only<br />

London Heathrow, flying to Auckland from<br />

there via Los Angeles. Of late, it also sends a<br />

jumbo jet every night from London to<br />

Auckland in the opposite direction, via Hong<br />

Kong, on a route that in flight time (21 to 24<br />

hours) and miles is almost exactly identical.<br />

The airline has been in business for over 60<br />

years, surviving times good and bad. On<br />

April 30, 1940, its predecessor company<br />

Tasman Empire Airways (TEAL) launched flying<br />

boat operations to Australia. In 1961,<br />

TEAL was taken over by the government and<br />

later renamed Air New Zealand, on April 1,<br />

1965. In October 1989 the company was privatized<br />

and its shares listed on the Auckland<br />

stock exchange. After its affiliate Ansett<br />

Australia went bust, the company in fiscal<br />

2000/2001 posted a loss of 612 million U.S.<br />

dollars, the largest ever incurred by a com-<br />

pany in New Zealand. The white knight then<br />

was the government, which took 80.2 percent<br />

of Air New Zealand’s stock and has<br />

been hanging on to it ever since. That<br />

marked the beginning of the airline’s rapid<br />

recovery. In 2002/2003, it already made<br />

close to 100 million U.S. dollars in profits. By<br />

now, under the leadership of its chief executive<br />

officer Rob Fyfe, Air New Zealand has de<br />

facto again become a serious factor in the<br />

industry. “We were very dynamic for an airline<br />

of our size with our strategic decisions in<br />

the last months,” is how Rob Fyfe sees it.<br />

The innovative Business Premier Class seats are<br />

driving Air New Zealand’s success.<br />

That also includes a decision, taken last year,<br />

to close its own engine maintenance operations<br />

in Auckland and outsource the engine<br />

MRO work. The company’s 34 General<br />

Electric CF6-80C2 engines, which power<br />

part of its Boeing 747-400s and 767-300ER<br />

fleet, plus spare engines, are now being<br />

maintained by <strong>MTU</strong> Maintenance Hannover<br />

some 17,000 kilometers away. Fyfe praises<br />

the effectiveness of the cooperative effort:<br />

“By outsourcing the work to <strong>MTU</strong> the cost of<br />

maintaining our engines was lowered by 30<br />

percent and the turnaround is 50 percent<br />

quicker now.”<br />

According to Fyfe, Air New Zealand Cargo<br />

hauls eight to ten engines a year to Germany<br />

in its Boeing cargo aircraft. “We would take<br />

about 120 days per engine, <strong>MTU</strong> does it in<br />

50 to 60 days,” says a pleased airline CEO.<br />

“That’s mostly due to smooth logistic organization,”<br />

explains Nils Fenske, who at <strong>MTU</strong><br />

Maintenance Hannover is the director sales,<br />

Australia and Pacific Rim. Also, according to<br />

Fenske, <strong>MTU</strong> is known for its flexibility in<br />

spare parts provisioning, which otherwise<br />

necessitates lead times of between one and<br />

six months when ordering new parts. <strong>MTU</strong><br />

further uses a so-called flowline principle to<br />

facilitate the teardown and reassembly of<br />

engines, which is a tough job considering<br />

engines contain some 30,000 individual<br />

items. Adds Fenske: “Since we’re repairing a<br />

lot of engine parts in our high-tech shops<br />

and buying relatively few new parts from outside<br />

sources, costs are bound to come down<br />

appreciably.” He continues to say: “With its<br />

well-known reliability and quality standard,<br />

Minor engine work, like here on a Boeing 767, is performed<br />

in Auckland.<br />

Air New Zealand is our key customer in the<br />

region.”<br />

Already, the airline is planning ahead: Air<br />

New Zealand is presently mulling the addition<br />

of 23 new routes, many of which cannot<br />

be served until 2010 and after, when the first<br />

of the eight ordered Boeing 787-9s will be<br />

delivered, for which the New Zealanders constitute<br />

the launch customer. Independently<br />

of that, Air New Zealand has largely achieved<br />

its current goal: “We want to be market<br />

leader on all routes we serve—and that is<br />

already the case everywhere with the exception<br />

of Hong Kong where Cathay Pacific still<br />

leads,” says a proud CEO.<br />

For additional information, contact<br />

Nils Fenske<br />

+49 511 7806-390<br />

This article is available online at:<br />

http://www.mtu.de/107ANZE<br />

22 REPORT REPORT 23

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