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In this essay I will be outlining the importance of a vision statement and mission statement to a
business and using Air New Zealand͛s reference to their vision statement in regards to their New
Trans Tasman flights strategy and if it is a tactical or strategic objective on their behalf.

Air New Zealand has recently introduced a restructure of its Trans Tasman and Pacific Island services
through a range of options. This new ͞Trans Tasman͟ strategy is aimed to set a new benchmark in
terms of competitive pricing, choice and airport experience. Air New Zealand intends to cut the rpice
of Air NZ fares with the Tasman and Pacific, reduce airport waiting times and introduce a new sales
channel to provide choice for customers. Part of this strategy is to completely standardise the entire
Airbus 0320 fleer to a one class configuration with 171 seats (Y
Y

with the removal of
business class. Trans Tasman / pacific customers will be offered the choice of five options which
range from the options of simply buying a seat with entertainment, cuisine and beverages and carry
on allowance to a deluxe package that includes two priority bags, lounge access, food and a
guaranteed empty seat next door. General manager Bruce Parton of Air NZ stated that ͞the tasman
is one of the most fiercy competitive airline markets in the worlds, wirh airlines competing for the
5.8 million passengers who fly between Australia and NZ each year͟. Air NZ has a market shareoof
2.1 million of these passengers and carries more than half a million passengers to and from the
pacific island destinations annually. Air NZ operates 280 Trans Tasman flights per week and 72
pacific island flights each week so there is consumer interest.

Air New Zealand͛s vision statement (attached) is a compelling description of its main purpose to
͚strive to be number one in every market͛ by saying in every market they are referring to not only
auir travel and transport but the service and experience that they ͚serve by͛. I think that ͚serve by͛
means that Air NZ is committed to creating innovative, new ideas and focusing on them to blend
them into their vision. They believe they can achieve this through their highly idealistic, motivational
tool of using the staff to work together and create a work place / environment where everyone is
dedicated to the customers and providing a service that is unique to the culture of NZ. The term
͚distinctively͛ New Zealand way͛ refers to the innovative nature of NZ and its general effortless
attitude. The principal behind the vision statement is to outline what they want to be seen as in this
global world and is a source of inspiration primarily focused on moving forward.
Air New Zealand͛s guiding principals (attached) represents their core priorities based around their
culture and background. It considers the values of the customers, shareholders, employees and the
community. They use personal pronouns ͞we͟ and definite commands ͞will͟ to re inforce the
determination of Air NZ. Their desired level of performance is to be the airline of choice for New
Zealand travellers and to build competitive advantage in their function of business through the
peoples creativy and innovation. Air NZ states it will promote NZ and its people, culture and business
through their initiatives and creative team that is committed to the growth of NZ and the company.
Their workplaces are to be based around fun, energising vibes where people have the chance to
express change. The purpose of their mission statement is to create a sense of direction and
opportunity to accomplish organizational goals and achieve objectives. Their core priorities are
increasingly important in strategic planning and should be in place to create a standard in
establishing decisions and strategies.

Air New Zealand͛s newly developed strategy empowers their vision and guiding principles in many
ways more than it overlooks them in certain areas. The intention to slash fares on trans Tasman
flights fits well into building competitive advantage and being the airline of choice for customers
travelling within the trans Tasman and pacific with a budget and price as the main priority for certain
customers with certain needs. A reduced price in air travel will provide a opportunity in their lives
which in turn reflects Air NZ͛s value to make a difference. If the prices are the lowest in a certain
flight, this means that air NZ is achieving its strive to be number one in the market aimed to serving
customers wanting low cost travel. The removal of business class acknowledges air NZ͛s vision for
superior industry returns. The͟ demand for business class seats out of Wellington had been
diminishing to the point where just one of the eight seats was being sold on average per fight.͟ (NZ
YAHOO) Mr Parton said this was occurring ͞predominantly due to companies and government
departments cutting back on spending and opting a policy of economy class travel which supports
the decision for standardizing the A320 fleet into a one class configuration͟. The removal of business
class reflects the ͞distinctive NZ way͟ as it removes the element of segregation and promotes
diversity among the customers just like New Zealand is a culturally diverse identity. The new strategy
will provide more seats for the crucial Trans Tasman which reflects the ͞growth and vitality͟ of New
Zealand. In 2009 president John Key gave a speech to the tourism industry on ͞lifting our game͟ and
his ͞vision for tourism͟. He stated that his vision has one simple goal. ͞My vision is that we make the
very most of our competitive advantages and that we seize the many opportunities they provide͟.
The new strategy to amke fares lower follows their guiding principals by promoting New Zealand by
creating a budget friendly travel alternative. The idea of ͞the savings on lead in fares would buy an
extra nights accomidation for a family of 4v on their holiday to the gold coast͟ (TRAVEL TALK NOW͟0
blends into their vision of being discinclyv New Zealand and responds to the changing world. Due to
the economic circumstances cust cotting prices provides more opportunites to New Zealanders to
make the most out of their money. It captures the interest of customers whose expectations are
changing are changing. Air New Zealand promises to reduce airport waiting times through the use of
kiosks and streamlined check in is an advantage to customers and supports the idea of Air New
Zealand being number one in the area of serving in terms of waiting times airport experience. The
NEW strategy strengthens New Zealand͛s people as it is an answer to a better understanding of what
customers want in these highly competitive markets and ͞the innovative changes we are going to
introduce are based on what hey have been telling us ͞ said Mr Parton. (AUSTRALAIN) Air New
Zealand looks outside its own industry for ideas. Chief information͛s officer Julia Rave said ͞we don͛t
just look at other airlines, at airports, We look at shopping centres, universities, we look at pretty
much anywhere to get ideas that we could potentially use at Air NZ͟. The new strategy promotes
choice and Air NZ looked for inspiration from regular public places by referring to words ͞pick and
mix͟ and ͞the works͟. This reflects their creativity and innovation of ͞Our People͟. This term
meaning not only the people of air NZ but all of those who have been used as inspiration. Finally Air
New Zealands new strategy introduces and element of choice. The new options offer freedom and
flexibility in choosing how want to fly. One of Air NZ͛ guiding principles is to be ͞the customers
airline of choice͟. As wel all know, when choice is put in front of us, some feel intimidated and some
thrive. Air New Zealands range of seat options will open up a new way of deciding where to spend
extra money in terms of travel. New Zealanders love individualism and this new strategy impliments
this idea. Air New Zealand͛s principal activity is ͞the operation of domestic and international
passenger transport and cargo͟ and by introducing this strategy, they are developing revolutionary
air travel to suit the specific needs of our ever-changing world.

The new strategy does not reflect their vision very clearly in terms of being ͞committed to
customers͟. Customers in a vague word and includes a range of specific needs. The removal of
business class means that those willing to pay the price no longer have that distinct separation of
classes which certain customers are willing to pay for in order to receive the service. The purpose of
business class is to offer executive, high quality service that differs to the normal economy class. The
individual, premier service differs to that of economy class and is a service some expect to receive as
an option and this new strategy does not provide this in terms of a entire separate wing. Yes it
guarantees a spare seat beside but this defeats the intentional purpose of the executive business
class to do work and being surrounded by everyday noise creates a distraction. Another reason the
new strategy doesn͛t reflect Air NZ͛s vision is the new way of selling tickets. One of Air NZ͛s
principals is to be ͞fun, energising and where everyone can make a difference͟. Part of the airport /
flying experience is the service you receive. With the loss of business class air hostesses are no
longer connecting on a smaller, personalised basis and so it has an effect in the ͞making a
difference͟ as they don͛t have as much impact on individual customers. Many airlines tend to make
their profit out of business class sector so with the removal of the Trans Tasman pacific business
class it will impact the ͞industry returns͟. This means that has an effect on the shareholders which
reflects on their ͞growth͟ of the company.