Neha Jain: http://newzealandaviationnews.blogspot.com/1

Air New Zealand's new premium economy seat design, the 'Spaceseat'.

1. Attention-seeking airlines: they want your business

Airline innovations - Air New Zealand's "cuddle class" Skycouch, for instance - are often a clever and effective form of attention-seeking, suggests a savvy expert on industry trends.

"It's a way for an airline to be noticed in a cluttered marketplace," says Raymond Kollau, founder of website airlinetrends.com, which monitors new developments in the aviation industry.

"You may never use the particular service that's being written about but you'll probably remember the airline and think of it as innovative - and, therefore, perhaps decide to travel on it."

Advertisement: Story continues below
Kollau cites the example of Emirates, which garnered plentiful publicity globally when it introduced showers for first class passengers aboard its A380s. Very few passengers can afford to travel first class, he points out - but they nevertheless view Emirates positively because of such developments.

Most passengers use ticket price as their main criterion when picking an airline. Low-cost carriers - such as Australia's Jetstar and Tiger Airways, Europe's Ryanair and Asia's Air Asia (with long-haul arm Air Asia X flying to Australia) - win abundant publicity through announcements of deep discounts, $1 fares and even "free" seats.

Airlines are remembered even by passengers who miss out on these deals or who are aware that "free" flights aren't actually free when taxes, charges and ancillary fees are factored in.

In this highly competitive climate, other traditional airlines - known in the aviation industry as "legacy carriers" - are compelled to try harder to win media coverage.

"It's about differentiation," says Amsterdam-based Kollau. "Fierce competition... is forcing airlines to think of ways to stand out.

This especially, but not exclusively, applies to relatively small airlines such as Air New Zealand, All Nippon Airways and Finnair. They don't have the vast networks of the likes of Lufthansa, Delta or Emirates and have to offer something extra."

While Air New Zealand is important in Australia, in world terms it's "a small airline in a small country at the end of the world". At least, that's how airlinetrends.com defines it. What's more, many of its flights are long-haul - such as services to London.

Air New Zealand landed immense international publicity last year when it unveiled its Skycouch innovation, to be available on some London services from April before being more widely rolled out. It's a stunningly simple concept, requiring 22 sets of Skycouch seats (the first 11 economy class rows next to windows). Passengers pay a discounted price for three seats comprising a Skycouch. Armrests fold away and, at the touch of a button, footrests rise level with seats to create a couch - which comes with a pillow and other amenities. The airline says the Skycouch can be used to stretch out while reading or watching movies, for more sleeping space or as a children's play area.

Perhaps inevitably, wags nicknamed it "cuddle class" - and publicity resulting from such mischief hasn't hurt Air New Zealand either. According to Air New Zealand, more than 30 other airlines are interested in buying rights to the Skycouch concept after 18 months' exclusivity ends. Aviation analysts suggest that vast publicity pegged to Air New Zealand's Skycoach announcement - boosted by inevitable Mile High Club connotations - will enhance an already-good long-haul reputation even among passengers occupying regular economy seats.

2. Jetpack company flies closer to IPO lift-off

The public may get a chance to back world class Kiwi technology in the next three months if a planned float of Christchurch aero-engineering firm Martin Aircraft Company takes off.

The company has gained global attention with demonstrations of its innovative jetpack, a personal flying machine capable of transporting a person 50km at speeds of 100km/h, and reaching an altitude of 2500m.

Founder and inventor Glenn Martin said it had always been his vision to float the company on the sharemarket.

``We've been talking to the brokers and talking around the markets and appointed people to look at the process, so we're pretty serious about it,'' he said.

Although it had yet to earn revenue, Martin Aircraft had the requirements for investment, he said.

``You need [a product] nobody else has got, which we've got; you need [intellectual property] protection, which we've done worldwide; you need proof of concept it's actually going to work, well we've flown this thing 3500 times and it blows away any aviation engineer or aerodynamicist who comes, they're just stunned by it; and then you need a large market, there's not much point if you're only going to sell five.

``And that's the last part that's come to us over the last 18 months. We have expressions of interest now for over 6000 aircraft.''

Chief executive and co-investor Richard Lauder said the company was actively working on an initial public offer. ``We're heavily in process - a bit disrupted in the last week, but we've appointed financial advisers and lawyers, putting marketing plans in place.

``The exact timing is yet to be determined, but likely to be May/June.''

The amount of money to be raised is not confirmed, but likely to be between $8 million and $20m, with about 25-30 per cent of the company on offer.

The business came through the earthquake relatively unscathed, although no-one was at work last week as staff looked after their personal concerns.

``The building here seems ok,'' said Lauder. ``One of the jetpacks fell over and bent an arm. The guys are out tidying up now. Pretty much by the end of the day we'll have tidied up.

``The main concern for me is how our supply network is holding up. We have critical companies that integrate into our development programme and I don't know what their status is. So if our composite supplier is down, we're stuffed in terms of moving forward - they're in here every week modifying parts. It's not just us, it's a bigger group of organisations.''

3. Headaches on new plane

The Air New Zealand marketing machine is almost as big and brash as the airline's new Boeing 777-300 jet.

But the campaign to promote new food, drink and innovative seats on its international flights has been marred by previously undisclosed delays.

Passengers have been forced to wait for their meals, as cabin crew struggle to dish up in the narrower economy class aisles. Now, the airline has decided to scrap one course - the pre-meal snack and bar service.

Air NZ crew have had issues heating meals in the new ovens in the 777-300, and have asked the manufacturer to replace casserole dishes that didn't meet specifications.

Despite massive international publicity, the so-called "cuddle class" lie-down seats have not yet been approved by the Civil Aviation Authority.

One staff member, who would not be named, said the in-flight service was "a dog's breakfast" and cabin crew were very unhappy.

The 777-300 has carried more than 10,000 economy class passengers since it began flying last month. But the airline is dismissing the concerns as teething problems, and says Civil Aviation sign-off was expected to be a lengthy process.

The Skycouch - "cuddle class" - was officially unveiled more than a year ago, and has been heavily marketed.

It allows couples or families to lie across their seats, which are extended into a sleeping platform.

Air NZ corporate communications manager Tracy Mills said the Skycouch was in the final stages of authority approval and due to be completed before entering service in April.

Of the airline's Boeing 777-300ER's 224 economy seats, 60 will be configured to transform into 20 Skycouches.

NEHA JAIN

International Airlines Training Expo