7 Nov 2012

Axing Asian route to London pleases investors

7:45 am on 7 November 2012

Investors have welcomed Air New Zealand's decision to axe its Asian route to London to return its long haul business to profitability.

The airline's share price rose 3 cents to $1.22 each, after cutting its service between Hong Kong - London from next March, affecting up to 70 cabin crew jobs based in London.

It's also agreed a code-sharing deal with Cathay Pacific on the Auckland - Hong Kong route, which gives passengers more options when flying to destinations in China and the rest of Asia.

Last year, Air New Zealand said its long haul business was losing $1 million per day. Deputy chief executive Norm Thompson says these steps will help arrest that, while boosting its plans to bring more tourists here from China.

Mr Thompson says people can still fly to London via Hong Kong, using one of Air New Zealand's partners, Cathay or Virgin Atlantic