Employment laws, union laws, laws regarding licensing, contractual laws are some of the important laws that govern the ways in which business operates in the region. There is high importance and precedence given to the protection of the employees, environment and the local interests in the legislation. Air New Zealand has the largest service fleet. In this case the change management will be difficult to impose in such a situation.
Strong brand image from decades of experience has enabled the company to sustain. They have been able to develop an inclusive policy in their promotional ads. The company has the adequate infrastructure to cater to the consumers. They have also kept up with the latest trends to sustain in the markets. The company is an equal opportunity employer and ensures that the employees are treated well. Majority of the stakes of the company is government owned hence the stable democratic government has enabled the company to get the required support it needs.
The issues that the company faces in their operations are the rising fuel costs, rising pollutants through carbon emissions, limited fuel reserves, not organized staff. Apart from this the company is not able to provide services similar to Qantas or Cathay Pacific companies. This is especially true for the economy class passengers. The company needs to have a better technological infrastructure to meet these demands.
External terrorism threat is another issue that impedes the progress of the airline growth. The company should ensure that the security measures are not exclusionary while at the same time they are comprehensive.
Overall the company is performing well given the situation. They need to focus on the following in the future. This has been explained in the section below.