Introduction – Role as change agent & OD specialist:
This is the New Zealand’s largest airline operating in more than 15 international and about 27 domestic destinations. It has been included in the world’s largest 20 airlines after the acquisition of Ansett Australia group. It carries almost 12 million travelers and millions of cargoes through 2 laces flights per year and has more flights than any other airlines in New Zealand, Australia and other pacific regions. It was started in 1940 with the name of Tasman Empire Airways limited which provided service across Tasman Sea with the flying boats. In 1953, it was owned by Governments of Australia and New Zealand each having 50 percent shares. But in 1961, government of New Zealand bought the part of Australia’s share and became the sole owner. Then, government heavily invested on this airline to make it national airline and symbol New Zealand. In 1980s, its partial privatization was started and by 1989, it was completely privatized. Government was facing huge losses due to high operating costs, so privatized it. It has so many subsidiaries and alliances. It has four fully owned subsidiaries while with others it is working in alliance and shares. Vision of the company is that it strives to provide services differently from the competitors in native way of the country that is New Zealand’s way and wants to be number one in the market with higher industry returns. Its principles address every stake holder like employees, customers, society, competitors etc. It is a very prestigious company providing valuable and reliable services. It won the award of the company of the year in 2014 in Dolomite Top 200. It has staff of around 11ooo people committed towards the company and its success and providing valuable services to the customers. It has highest profits records and its revenue has been increasing for last three years.
The most important thing is to bring the change management as the globalization is prone to changing business conditions. As a OD specialist, it expected to develop the structure of the organization by building contacts with the external flights and suggesting the more suitable concerns about the change managemen. The most important thing to ask is that how a small Kiwi company became so huge; it was all due to their brand experience delivered to the people through innovation, customer care, employee engagement and being distinctive. The dynamics of a company and surroundings keep on changing. Now a day’s scenario is quite volatile because of the changing forces. It is not the past days when thing were that much impacting but now a day’s competition is so fierce that companies are supposed to be continuously adaptive to change and must have a proper change management. It needs modified integration of the system linking operations, humans and technology. Different forces affect the company if the change management has not been introduced properly so it can be highlited as in case of Air New Zealand, it is facing many different challenges as discussed below:
Ethical Dillemas:
The biggest challenge being faced by the company is environment stability. AS air traffic has been increasing, there are more damages towards the stratosphere, ecosystem ad environment. When a plane flies, it emits gases, smoke, heat and noise which are altering the environment gradually. This is a very concerned issue for the people living on earth as environment is becoming more unnatural and losing its purity. Air New Zealand has started Carbons offset programs as to reduce the emissions of carbon from the environment and make environment safe. For this purpose, the company established New Zealand Environmental trust as it aims to make New Zealand Green and healthier regarding environment. This step somewhat meets the benefit of the company itself because they aim to serve people in New Zealand’s way that is by keeping the country green and clean. It aims to make country clean regarding ground and environment. In this way, it can be said that company doing so much for the country is worthy. For this purpose, they have included the citizens in this campaign as they can work voluntarily and can support by giving donations. As the company is the symbol of the country, New Zealand has been experimenting for non-food bio fuel generation 2 with which carbon credits can be reduced by using satellite navigation system and proper air traffic control because through them because dramatically, it can reduce consumption of oil by many thousands liters (Teece et al, 1997).
Another challenge faced by Air New Zealand is the competition. Industry is fiercely and extremely competitive. It is more intensive in short haul as compared to long haul. Within the country, more rivals can give tough time. In the case of long haul and international flights, different international airlines belonging to different companies are competing with one another in a way that they are prompting more flights within markets. China had been center of attraction for the whole world as of its economic growth. People are more travelling these days. Air New Zealand has been operating international flights to the China but still has not got any of the domestic flights operations’ rights within China (Kaplan, 1996).
World has been going through recession and what can have so major effect than any air flying company. A company which deals in huge investment, returns, expenses and employees dealing with millions of customers both national and international is more vulnerable towards such impacts. This recession impacted Air New Zealand a lot. Along with the increase in fuel prices worldwide, expenses of an airline company almost get doubled as it has highest fuel consumption. These two things are impacting a lot on the airline industry throughout the world. Same is the case here as Air New Zealand is cutting down its expenses and even there is threat of firing around 80 employees as to cut the expenses. It needs government to give huge dent reliefs and needs some capital investments. It needs to operate on even a larger scale than this by attracting foreign equity for the purpose of managing the expenses and increasing profits and needs to have foreign alliances. Similarly, fuel prices are reducing which in return must cause an impact over the company’s fares which lead into reduced revenue and profits. When fuel prices reduce in the international market, people of any native country require the prices to be lessened in their country too leading to reduction in fares of transportation whether road or air.
Another challenge that raised the questions in the minds of the engineers and scientists is that why aircrafts cannot be tracked if some fatal and dangerous accident happens to the plane. The examples are two fatal crashes this year about which no track record or information could be found out as where they went and what happened to them. It is a very big challenge as the people who lost their friends and relatives in the crashes could not have any know how about them as what happened to them and their bodies. This has forced scientists and engineers to work forward to improvise new technologies as this risk could be minimized. This year, Air New Zealand faced the allegation of engineering issues as its flight was landed in emergency. This impacted the image of the company a lot (Covin and Slevin, 1989).
It operates flights in a great number within the country. While a very great threat for the company is that New Zealand is going to face more weather extremes. As New Zealand is facing trend of high sea surface area and sea temperatures, so patterns of rain fall will be changed possibly and with hotter extremes and lesser colder extremes. It can cause huge impact on the flights not only within country even flights going outside and coming inside the country.
On time performance is the symbol of recognition and fame for Air New Zealand Company as it has been recognized as best by Flights stat on time performance awards. Within the last three months, its long and short haul international flights timings have been good and appreciable as for the international long, timings improved by 3 percent while for the short international, timings sustained almost around 84 percent. While for domestic jets, timings fell by 3 percent and for regional flights, timing criteria fell by 8 percent which is very alarming. This is the symbol of success. But to maintain these statistics, it is very tough as there is a pinning and bottle neck competition in the market and being number one and sustain it is very tough and requires efforts and nonetheless a challenge. It’s on time performance is reducing and it is a very big challenge for the company to improve it (Freeman, 2010).
Customer services:
As per the recent trend, customers are everything. It is the fact that company actually aims at its revenue and profits but the tool is to be empathetic towards the customers and value them. Marketing and business scenario is getting more and more sophisticated every day. It’s all about customer these days. In one perspective it is very important because the competitive scenario is fierce. Competitors are striving to surpass and exceed the others and customers are now given with so many choices that the victory of might cause permanent or long lasting loss to the other company. To attract and retain the customers is very crucial; one can say it is everything. It is the loyalty that companies need and customers can be manipulated in a way as they are more concerned for their benefits. It is an age of variety and alternatives. Things can easily substitute sometimes and sometimes hardly but they are the substitutes still. So, customer services are so important towards the companies these days as they allocate a specific amount of budget towards this part and have employed specific techniques with special employee force. It is an age of technology, up gradation and adaptation is made possible through skills, knowledge, expertise, experience and intellect but this is done at rapid pace by every firm. So, customers need some traditional, some innovative services as they must be felt prestigious and privileged. They must feel a close relationship with the firm (Ansoff and Mcdonnel, 1990).
Management of resistance and impact of cultural context
Air New Zealand Company is also so much concerned about the customer services. The most distinctive and innovative thing is that it relates everything it does to its country. Its things are Kiwi things. It welcomes people to experience New Zealand. It has emblem bed New Zealand as its distinction. This seems very attractive and a land mark in its success run. It’s ambitious, loving, caring, humble, down to earth and proud people take care of the customers and ensure that whatever they do, get, experience and feel, they experience in Kiwi way. Its employee force is so integrated and loyal towards the company as if they are the company themselves. It aims at providing joy, happiness, feel and experience to the customers. It does not compromise over its values and ethics. It is moving internationally dealing with millions of international people throughout the world. To manage such diversity, Air New Zealand is so much incorporated with this diversity that no non-native and new person can feel uncomfortable as employee force is so much experienced and trained. Its approach is empathetic. Every passenger has its own story. It deals with all the stories in the required manners. It has gained so many awards including regarding customer services. It has so many rivals, being operated in such scenario requires more soft empathetic approach because this is such an experience that customer experiences in reality and from inside. Providing ease and comfort to the customers in such environment can attract them for many times. One of the biggest approaches is its step on carbon credits reduction by launching a trust and campaign. It cares not only for the customers but for the environment they are living in. It shows a patriotic concern towards the country as it aims at keeping New Zealand clean and green and wants to make themselves a real image of the country (Ray, 1999).
It is focusing on simplifying the journey of customers. The resistance has been followed by various customers and employees by the organization. Customers are more intuitive and active now and they can handle their things on their own base. As passes are given at the time of purchase, through mobile or at the time of boarding, so self-tagging and bag drop can be introduced as customers can have their things done by themselves. This way our staff can be more active, space can be used more efficiently and different steps, most importantly, can be reduced to some. It is always there to provide the solutions, care, joy and experience to the customers.
Air New Zealand is a worldwide and the nation's countrywide transporter. It is intensely conscious about the significance of keeping up and becoming New Zealand's "100% Pure" repute worldwide. In this way company is focused on meeting the most highly standards regarding natural responsibilities.
All air travel has an effect on ecosystem - specifically, the CO2 productions connected with air travel are thought to add to natural environmental change. Air New Zealand will keep on seeking out environmental satisfactory options in every part of its business. They have a foundation part in guaranteeing their country's clean and green picture is kept up far and wide. Inside of the most recent four years alone, Air New Zealand has prompted 41 activities which have had or are having a constructive natural effect.
The Trust has been built up to give individuals the chance to specifically add to natural ventures in New Zealand. Adding to the Environment Trust is a method for guaranteeing that you are contributing something towards the environment. Securing capital, growing exports and moving to a low carbon economy are among issues recognized by the New Zealand Institute as being most vital to the nation's long term achievement..
Implementation of an organizational change process
Globalization is prone to keep on changing the way of exchange and extend financial connections between nations. The implementation of the change process follows the aspect of the globalization at the large. While the universal circumstance is prone to build consideration on how streams of capital are overseen and how regulation is facilitated, it is unrealistic to invert the more drawn out term patterns.
Globalization likewise gives a steadily focused environment for a more extensive scope of our organizations locally and globally. New Zealand has a scope of qualities to expand on, including a generally adaptable economy, regular asset points of interest and moderately low vitality expenses to extend and broaden the scope of what we exchange and adventure new and more specific markets.
New Zealand is an isolated destination. However there is the need to advance the country itself as every item accessible on landing is accessible somewhere else on the planet along with the need to advance the tourism items accessible upon entry. We can promote it by advancement of New Zealand as a destination also the customers items accessible on landing happens through particular item promoting by private division tourism administrators including Air New Zealand. Except for Air New Zealand, private area promotion is largely centered on items accessible upon entry. “Tourism New Zealand “and “Air New Zealand “are the two associations that market the whole of the destination. Tourism New Zealand's open great advancement addresses the disappointment of most of the private division to advance the whole of the destination.
Air New Zealand's promoting activities contain natural public great advancement of New Zealand and TIANZ gauges that this has a present estimation of $1.4billion. On the off chance that Air New Zealand stopped to be a different entity, Tourism New Zealand's financial plan would need to ascend to over $155 million for each annum to buy comparative open great presentation. TIANZ watches that this consumption would be delighted in by other inbound transporters that have their own national personalities and plans.
In all actuality numerous worldwide full administration air transports traveling to New Zealand have fizzled or lessened administrations lately. The customers ought to be able to have a decision of services provided by the company. Appropriation frameworks ought to additionally encourage the capacity to make a decision. This is a guarantee that the behavior that emerges from rivalry is plainly clear in the New Zealand aerial shuttle industry and that administration suppliers keep on working inside of a market that expects proper standards of administration quality (Evans et al, 2012).
TIANZ is mindful of various situations for the future that legitimacy thought. Two of these incorporate the present state of affairs and the proposed Alliance. Furthermore, TIANZ additionally visualizes extra situations that may convey the conduct of rivalry.
The conduct anticipated from straight on rivalry is accomplished by formal regulation to guarantee that new competitor can enter the business and create to the point of accomplishing an economical share of the market after which rules and regulation decrease
New Zealand's tourist’s combination is changing and our source markets are turning out to be more expanded. Some customary markets demonstrate a critical constriction, most extraordinarily the UK. By complexity, noteworthy development has originated from China, non-customary European and other Asian markets.
Emphatically, the industry has grabbed in 2013 and there is a more noteworthy feeling of positive thinking both inside of the business and from observers. It is critical we expand on this energy. Solid and persisting industry arrangement and attachment around the Tourism 2025 subjects and activities is indispensable. According to the global travel pattern point customer’s requirements are continuously changing as increase interest in more people and reliable travel services, more increase in reliance on more technology to arrange, purchase and survey items and administrations, developing of “silver” travelling market in maturing populace base and finally greater number of women travelling through air lines. These travel patterns are significant for New Zealand. In the meantime we are additionally encountering a central change in the social structure of our universal landings and this is figure to quicken. While most New Zealand tourism organizations have a firm comprehension of apparent and open development in top line incomes, we require more remarkable deceivability of changes in tourist’s consumption at an industry level.
Recent activities, for example, the arrival of “Regional Tourism Estimates” are a stage in the right heading however more is required. We must form a much more grounded perspective of how genuine tourism consumption is sloping on a month to month premise and for both main and high development markets. This will then empower the execution of other key pointers, (for example, entries) to be evaluated in the setting of genuine or assessed worth results. .
Implementation of feedback process
The feedback process has been installed at the immediate basis as the feedback of the customer matter a lot. While we may like to urge visitors to visit longer, development may originate from shorter stay markets, for example, Asia and Australia. For this situation urging visitors to accomplish more and managing air network with those short-pull markets will be discriminating to accomplishing economic development targets. Our focused knowledge needs more clarity of mind. As a starter, the continuous monitoring and production of piece of the overall industry data is basic to checking performance precisely (Buhalis, 2004).
Institutionalization of the changed state
At a large scale level we ought to proceed to monitor measurements of aggressiveness of the market, focus to safeguard and construct mindfulness of competitive advantage, focus purchasers without bounds, observe reputational dangers for the business, e.g. observing execution around ecological elements to guarantee we can hold our advertising guarantee in the long haul, China presents the single biggest business sector open door for our industry. Given the future significance of this business sector, on-going quality research on this business sector and business fragments is basic. Regarding social changes, both industry and government offices have distinguished the need to better comprehend 'future customers', with a starting concentrate on China.
More than any time in recent memory, we have to research and comprehend future markets which will be altogether different from our conventional markets and from New Zealand's way of life. We require for development and modification of tourism items that are socially fitting to these developing markets and drive the business sector structure results which will assemble esteem, by transform today's hindrances into empowering influences for these customers and by tailoring items to the occasional inclinations of these business sectors. To beat our rival, New Zealand must be more important than different nations at encouraging high esteem encounters for buyers from high development markets.
Organizational development and interpersonal & organization processes
Destination markets for worldwide tourism have generally been gathered in the propelled economies of Europe, Asia, the Americas, and the Pacific. In any case, with rising levels of discretionary cash inflow, numerous developing economies have demonstrated quick development as tourism destinations over late years, particularly in various markets in Asia, Latin America and Central and Eastern Europe.
Strategic response to change
Large recurrent issues are adding to Air NZ's working execution troubles, with components, for example, high fuel costs and the low estimation of the New Zealand and Australian dollars over the US dollar affecting on its cost building; Air NZ-particular issues are further adding to the airline’s working troubles, incorporating overwhelming rivalry in the Australian local business and the late establishing of the Ansett airplane at Easter that has influenced Air NZ into displaying its air ship trade anticipates the aerial transport;
Look for Government mediation by either facilitating proprietorship breaking points to empower Air NZ to draw in extra foreign air transport value and invest equity, or give some other type of monetary help, to the airline services.
Air Flight Competition
The Air New Zealand Company has established a monopoly on the routes of the non-stops flights from North America to that of the New Zealand. However the services are in increasingly threat as the American carriers have launched the services among the California and the Auckland. Owing to it, the monopoly of the company is increasing threat. Apart from it, another airway known as Qantas Airways has abandoned the flights that are flying from Auckland to the Los Angeles. However, the Air New Zealand is left as the sole carrier who is flying trans-Pacific from Auckland to the Los Angeles, Vancouver and San Francisco after the failure of the Qantas Airways. It is the time when the Air New Zealand has established the monopoly. The long haul division of the Air New Zealand has been seen for being in a loss for the years since after. The global economic crisis has also put the company into danger. The company has been facing losses accordingly. However, the competition is increasing day by day and threat of new entrants is jeopardizing the monopoly of the Air New Zealand. But in the fiscal year of the 2013, the company has started making profits again. The company has been enjoying no competition on the trans-Pacific route (Miller and Chen, 1994).
In addition to it, the competition in the industry is changing as the world has been globalizing and the markets of the world has been globalizing as well. The industry sources has elaborated that the potential of the United Airways has been increasing surprisingly as they have been taking most of the passengers on their Boeing 787 from Auckland to the San Francisco. Apart from it, the Qantas Airways has partner with that of the American Airways in order to get the dominance over the route of the Los Angeles in order to dominate the US carrier. Both the airlines are attempting to break the monopoly of the Air New Zealand as the motives are to look forward for the route of the Auckland and the Los Angeles route. The competition between the flights has been affecting the markets of the states as well. Owing to it the Auckland Airport and United airports restrained from commenting over the speculation directly. These airports have been providing the more opportunities to the airlines to continually assess the new routes opportunities (Gill and Shergill, 2004).
Team development and inter-group development interventions
More over the United and the Air New Zealand are the members of the Star Alliance. Despite of it, both the airlines are not offering any kind of joint ventures in the region. Even they are not offering any trans-Pacific joint ventures to their customers. It is how the competition between both the airlines has been assessed and its intensity has been witnessed. The competition in the flights is very sheer; it can be witnessed as the united airlines have been entering into the route of the Auckland to the Houston. The airline shelves that plan in the year of 2012. The competition among the competitors of the airlines has been elucidated as the chief executive officer of the Air New Zealand has said that the Air New Zealand has been conducting the war games on a number of competitors and varying competitive scenarios. For instant, the competition of the trans-Pacific is an elaborated example of the competition level and its intensity (Danaher and Arweiler, 1996).
Goal setting and management
Moving ahead, towards the capability of the Air New Zealand in coping with the present and upcoming competition, the Air New Zealand has a strong financial position in the market so it seemed to have the capability to deal with any intensity of the competition of the market with the respect follow competitors. Their ability to respond to the varying kind of competition is unquestionable. The recent months of their business cycle has shown that the Air New Zealand has increased the flight to a great number. The flights have been flying to the Los Angeles from three peaks times on the daily basis throughout whole year. The company has been looking forward for the new destination in the United States for the upcoming years. The Air New Zealand has been of the view that the addition level of the capacity of the organization would result in the competitive edge as compared to their rivals. They have been seeing the additional capacity provided to be the benefit over their competitors of the market (Frynas and Mellahi, 2015).
Similarly, the Air New Zealand has been charging reasonable prices despite of their monopoly; it has been providing them the competitive edge on the route from Auckland o the Los Angeles. The prices can be raised and the customers had paid it due to the present monopoly. The competitors such as Qantas Airways seem not to be interested in there restarting of the new route of the Auckland to the Los-Angeles. However, the goal of this competitor is to expand the shares in the market of the New Zealand. It is also looking forward towards the American Airlines and its joint venture with them for the healthier relations. This situation can enhance the competition for the Air New Zealand. The Qantas Airways has started the status match. This is a new competitive strategy and is aimed at targeting the customers of the Air New Zealand. According to this scheme, the high status member of the Air New Zealand has been receiving the status of the gold status by the Qantas flyer immediately if they switch from the Air New Zealand to the Qantas airlines (Brikinshaw, 2014).
The chief executive of the Qantas Airlines Alan Joyce has said it to be the extremely important market to be set in. the New Zealand has been considered as the largest international market set in the Australia. It is the reason and the competition that the second largest base flyer of the Air New Zealand is based here. The frequent flyer has been saturating the competition in the region and setting in the new competition in the market. The Air New Zealand is considered as the largest shareholder of the holdings of the Australian Virgin among all of the competitors. However, the Virgin Australia and the Air New Zealand has not been operating any kind of joint venture over trans-Pacific routes. The Virgin has been looking forward towards the Delta Airlines for the increased number of joint ventures over the route. It seems to increase the competition in the corridor of the New Zealand. So the Virgin has been seen as a new entrant competitor by the Air New Zealand as it is flying so often over the New Zealand and is a threat to the organization. However, the Air New Zealand has been code share the flights of the Auckland and the Buenos Aires that is including a large amount of the Australian traffic expected on their prescribed route.
Employee empowerment and interpersonal interventions
So the Air New Zealand is the national bird of the New Zealand due to which the preference is given to the company among its competitors. The market of the Air New Zealand has been containing up to 76% of the shares of the market of the New Zealand. It is the largest company of the region who is transporting the customers to the rest of the world. The competitive landscape of the company has been including the more than 30 parameters such as growth, profitability, employees, market cap and key benefits. As it has been discussed previously the Air New Zealand has a monopoly. So the growth rate is really high among the rest of the flight market. The organization has high profitability. There is a dire difference of the prices of the Air New Zealand with that of its competitors such as Qantas Airlines, etc. The company is believeing in the empowerment of the employs by providing them with best of their incentives and good perks inorder to intensify the customer service. The organization has a competitive edge of having a well-trained employee in the flights that are more prone to the customer service.
Planned change: transorganizational development, restructuring and re-engineering
In terms of the market cap, the competition of the flight market is very unique. The Air New Zealand has been holding the shares of the most of the market but though the market cap can be determined by the whole competitors if it is for the single company. The Air New Zealand has been availing all the key benefits of the market as the competition has no or little effect on the growth of the company who is enjoying the monopoly at its home destination. The New Zealand being the central point the Air New Zealand is at the competitive edge at large. The company has to face the fear of the new entrants from the home town but it is impossible for the new entrant to match with the giant business at start. So the Air New Zealand is enjoying the perks of high prices at the place and being monopolized in the route (Carrol and Buchholtz, 2014).
High performing systems and organisation learning
The economic conditions of the whole world are worst however, the era of economic crisis has little effect on the Air New Zealand. It has been expanding with the same pace and enjoying the higher profits and higher returns. The organization has a competitive edge of having a well-trained employee in the flights that are more prone to the customer service. The world is moving towards the trend of providing the more concerns and benefits to the customers and the employees in order to get high profitability. The satisfied customers and the satisfied employees are the asset for the organization. So is the competitive strategy of the Air New Zealand.
Conclusion
After the careful analysis of the above discussion, it can be concluded that the Air New Zealand is the national flight of the New Zealand and its flag carrier. Owing to it, it has been enjoying a number of advantages over its competitors as well as the other businesses. The organization is based in Auckland and is operating its scheduled flights to 25 domestic as well as 26 international destinations. The Air New Zealand has been providing its services in 15 countries throughout the world. World being globalized and markets being saturated the overall economic conditions are bad. It is causing threats to the profitability of the monopolies such as the Air New Zealand in their markets where they are holding the maximum shares. The competition is sheer and is intensifying day by day. The company has a number of routes throughout the world. It has been flying trans-pacific flights as well. The Air New Zealand has too globalized the markets of the company in all around the world. The company has been providing their customers with that of the best customer care through out. However, the prices of the Air New Zealand are rather high due to the monopoly in the region. The organization has to work on the lacking in order to grow further and indicates its lacking and weaknesses in order to get over the bad consequences, as there is always the threat of the new entrants in the market (Wensveen, 2015).
Recommendations
The given below are the recommendations for the Air New Zealand. The recommendations are made after the detailed analysis of the factors and the patterns of the organization. The recommendations for the Air New Zealand are as follow:
The Air New Zealand has been enjoying the monopoly in the home market. It is suggested for the organization to not put all eggs in the same basket. It has to diversify its profits in the different markets of the world. There are potential new markets present throughout the region and the world, where the investment payoff with double profitability.
It has also been seen that the Air New Zealand has been restricting its flights to some routes. As the markets has been globalized so there is a dire need of expansion in the expanding market. Although the monopoly of the organization is there but if the competitors has expanded operations in throughout the world, it would have been worsen the situation for the Air New Zealand.
However, the risk factor of the Air New Zealand is very high. The company has not adopting with the changing environment. It has to diversify the risk by investing throughout varying markets. So the economic fall of one market cannot effect the organization at large. It has to expand outside the trans-Pacific flights.
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