Air NZ crowned phoenix after recovery

Air New Zealand's latest industry award is not the usual praise for its wine list or business-class canapes but a tribute to its Lazarus-like recovery from money-sucking black hole to new-look profitable airline.

Air Transport World (ATW), a leading international aviation publication, has given Air NZ its "Phoenix Award" for a "commercial rebirth through a life-changing transformation".

Air NZ becomes only the second airline to win this award, after Irish carrier Aer Lingus, which staged a similar metamorphosis.

ATW said the award was for an airline that "has successfully left behind an old, failing business model to reinvent itself as a low-fare airline more likely to survive in today's brutal airline markets".

Air NZ said the judges commented that it had "survived a near-death experience in 2001".

The Government bailed out Air NZ to the tune of $885 million in 2001 and last year invested a further $150 million as part of a rights issue.

Airline chief executive Ralph Norris yesterday paid tribute to the "considerable effort" and dedication of airline staff, who made the transformation possible.

The airline made an after-tax profit of $166.2 million last year and will this year start paying a dividend to shareholders.

ATW said Air NZ's improved performance had put it in a position to tackle its biggest challenge - turning around its long-haul business.

The airline is taking delivery of the first of its eight new Boeing 777-200 aircraft in September and is spending $160 million refitting its eight Boeing 747-400 planes.