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Air NZ to Halt Unprofitable Hong Kong-London Service

(Corrects first, second, fourth paragraphs to clarify that carrier will continue London flights via Los Angeles.)

Air New Zealand Ltd. will stop its Hong Kong-London route after abandoning hope of making a profit on the service.

The carrier will halt the flights in March, it said in statement on its website yesterday. It will also begin cooperating on Hong Kong services with Cathay Pacific Airways Ltd. (293) from Jan. 31. The airline will continue flying to London via Los Angeles.

The end of the Hong Kong-London service will enable Air NZ to continue adding more capacity to Los Angeles and San Francisco, it said. Qantas Airways Ltd. (QAN) is also paring European flights and forming a tie-up with Dubai-based Emirates as Middle Eastern airlines win market share on the sector by offering a wider range of connections at hubs halfway along the route.

Air NZ will cut about 70 cabin-crew posts based in London alongside the end of flights via Hong Kong, it said. The carrier began the Hong Kong-London route in October 2006.

The airline also codeshares on Deutsche Lufthansa AG flights to Frankfurt.

To contact the reporter on this story: Neil Denslow in Hong Kong at ndenslow@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net.

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