AIR NEW ZEALAND'S FLIGHT NZ0

Brand X-Factors put the airline brand in a leadership position, making it virtually impossible for other airlines to replicate the initiatives. Air New Zealand has launched a project to become a true-zero airline, not just net zero. First, the airline started off by setting 2030 interim science-based targets to reduce carbon intensity by 28.9% from a 2019 baseline. Now, Air New Zealand has aspirations to acquire novel propulsion and zero emissions aircraft with the fleet scaling to reach all domestic destinations from 2030.

In 2021, the airline released a Product Requirements Document – a guide for business and innovators to help build, launch, or market the provision of zero emissions or novel propulsion aircraft in New Zealand. It provided an overview of Air New Zealand requirements based on its network and fleet and was intended to kickstart discussion for ongoing collaboration.

The “Mission Next Gen Aircraft”, dubbed Flight NZ0 has two ambitious goals:

Fly the first commercial demonstrator flight from 2026

Begin replacing the Q300 domestic fleet with a more sustainable aircraft – likely green hydrogen or battery hybrid systems from 2030

In early 2022, the airline announced five shortlisted aircraft technologies from around the world to help it accomplish its mission. Additionally, Air New Zealand and Airbus launched a joint research initiative to understand the opportunities and challenges of flying hydrogen-powered aircraft

From a brand perspective, this is visionary storytelling. No other airline globally has taken so many initiatives to build a sustainable future at the same time. While some are investing in sustainable aviation fuel, others are are offsetting emissions. Some are piloting eVTOLs in a few years. Air New Zealand has a cohesive strategy that allows the airline to stand apart. At the same time, the results of the experiennts the Kiwi airline runs will benefit the entire industry. It’s one of the best examples of an airline building a Brand X-Factor while pursuing a sustainable future.

While airlines only contribute to approximately 3% of global emissions today, research indicates that this number could rise as air travel grows. Because the aviation industry is highly visible and high profile, many see flying as a luxury that should be heavily taxed or significantly reduced.

After two years of dramatically reduced travel due to the pandemic, environmental campaigners are using two arguments - “Do you want to go through all that again?” And - “Was it so bad when you couldn’t fly as many times a year?”

In many ways, the pandemic froze many sustainability initiatives in the airline space - understandably, since many airlines stopped flying for months. But now, sustainability is back on the agenda, and it will be even more mainstream than before. This is why airlines must show visible progress towards becoming more environmentally responsible. At the end of the day, deciding the most strategic branding approach for an airline is critical. Is increasing competition an issue? Is it perception, whereby the image of the airline investing in sustainability impacts its ability to entice customers and a strong workforce? Whatever the situation, aligning with a suitable brand and business solution is essential.

The 6X+S model serves as a guide for this process, taking into account a number of factors unique to the airline industry, within and beyond the airlines’ control. As portrayed by the airlines featured in my book SOAR, the aim shouldn’t be to excel at each of the 6X+S factors, but rather choose a couple to focus on and execute them better than anyone else. That would help airlines become remarkable.