Air NZ has to play catch-up

April 2, 2004

Air New Zealand will spend $NZ160 million ($139 million) upgrading
in-flight entertainment and seating for its Boeing 747 fleet, chief
executive Ralph Norris said.

The airline has sufficient cash flow for the improvements without
borrowing, he said in notes for a speech to be made to investors in
Sydney.

Last year the airline said it would spend as much as $NZ200 million on
the upgrade.

Air New Zealand is upgrading services and slashing costs as it
prepares to counter increased rivalry on its routes from Qantas,
Emirates and Singapore Airlines. Mr Norris wants to add lie-flat beds
in business class and provide other services that his competitors
already offer.
--multiplaza.nl.nu--