Air New Zealand: Corporate Sustainability and Performance

This assignment requires an in-depth analysis of Air New Zealand's corporate sustainability practices and their influence on the airline's financial performance. Students are expected to examine various documents, including annual reports, investor presentations, and sustainability reports, to evaluate the company's commitment to environmental, social, and governance (ESG) principles. The analysis should also consider industry trends and best practices in sustainable aviation.

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Project Report
for
Air new zealand
Student Name
TIZ0000567
Diploma in Business (Level 7)
DB745: Business Project
Assessment 3
(5000 words)
Tutor: Lorenzo Alminaza Jr.

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Executive Summary
This report is based on the study of a research based on the company of Air New Zealand.
The research consists of primary research method for based on a questionnaire. The
secondary analysis of the research is based on the study of literature for the understanding of
the project research objectives. Air New Zealand is considered to be a domestic and
international group of airline that provides services of cargo transport and air passengers in
the boundary of New Zealand. In the year 1940, Air New Zealand was first started with a
different name TEAL (Tasman Empire Airways Limited). The main scope of the project is to
analyse and study the data of the company from all the official websites that are available and
also other websites that are available online. It took almost a three week of time to collect all
the data for the company. The two most important practices of the management practices of
any company or business organization are budgeting and finance. The main objective behind
this offer is that the company increases the base of the customer which boost the revenue of
Air New Zealand. Technology is used widely by Air New Zealand to advertise itself not only
in New Zealand, but all over the world. There are almost 11,000 people across Australia,
United Kingdom, Asia, America and New Zealand who are employees of the company Air
New Zealand. The aim of the company is to be a leading employer of the world and also have
initiatives of range in their place so that they can achieve their goal. The company of Air New
Zealand has involved strategies that are innovative which helps them to grow the business of
the company.

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Table of Contents
1.0 Introduction...................................................................................................................3
1.1 Background of the Organisation...................................................................................3
1.2 Objectives........................................................................................................................4
1.3 Scope................................................................................................................................4
2.0 Literature Review..........................................................................................................5
2.1 Topic 1: Social Corporate Responsibility of the Organization........................................5
2.2 Topic 2: Finance and Budgeting of the Organization......................................................6
2.3 Topic 3: Organizational Technology of Air New Zealand..............................................7
3.0 Data Collection & Analysis Methods...........................................................................9
3.1 Data Collection Method.................................................................................................9
3.2 Data Analysis Method..................................................................................................10
3.3 Data Collection and Analysis Method Used...............................................................10
4.0 Data Analysis and Findings........................................................................................11
4.1 Topic 1: Social Corporate Responsibility of the Organization................................11
4.2 Topic 2: Finance and Budgeting of the Organization...............................................12
4.3 Topic 3: Organizational Technology of Air New Zealand........................................13
5.0 Discussion..........................................................................................................................13
5.1 Topic 1: Social Corporate Responsibility of the Organization................................13
5.2 Topic 2: Finance and Budgeting of the Organization...............................................14
5.3 Topic 3: Organizational Technology of Air New Zealand........................................15
6.0 Conclusions.......................................................................................................................15
7.0 Recommendations............................................................................................................17
References...............................................................................................................................19

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1.0 Introduction
1.1 Background of the Organisation
Air New Zealand is considered to be a domestic and international group of airline that
provides services of cargo transport and air passengers in the boundary of New Zealand
(Hopkins et al., 2016). Air New Zealand also provides services to Australia and from
Australia, Asia, United Kingdom, South West Pacific and North America. Customers
considers Air New Zealand as one of the best company to serve in them in the market and
their first choice while travelling to and from and within New Zealand is the Air New
Zealand. In the year 1940, Air New Zealand was first started with a different name TEAL
(Tasman Empire Airways Limited). At that time, Air New Zealand only provided air services
between New Zealand and Australia Region. But in the year 1978, TEAL was merged with a
Corporation known as New Zealand National Airways Corporation (P-airnz.com., 2017a).
After merging, the service was named as Air New Zealand. In the year 1999, Air New
Zealand again joined Star Alliance and from then, it has won many awards which includes
many recognitions of Airline of Year.
Air New Zealand provides citizens of New Zealand with vast number of facilities which
mostly attracts the tourists and all the businessmen in New Zealand. Air New Zealand also
provides the fare at cheap rate as compared with other airlines in New Zealand. The company
has almost 31 destinations that are international and 21 domestic destinations which includes
United Kingdom and Pacific Island. The Air New Zealand has an organizational structure
with several members of board and there are also executives that comes under chairmanship
of Tony Carter from 2010 (Airnewzealand.co.nz., 2017). There is also a Deputy Chairman
Jan Dawson who assists Tony Carter in managing the company. There are many other
executive and other board members. Air New Zealand is most famous in New Zealand

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because it provides varieties of cheap services and the services they provide are reliable. The
Air New Zealand is given the highest priority because it satisfies the need of all the
customers. The service of Air New Zealand serves the passengers with different domestic
along with all the international regions. There are different schemes for Air New Zealand for
the cargo transport which mainly depends on type and the priority of the cargo (P-airnz.com.,
2017c). The main goal of the company is to serve the people with comfortable and cheap
services to all the passengers in its main area of operation and also deliver the cargo clients
with its topmost priority. The company also aims to make a global network for their cargo
passengers and airline passengers.
1.2 Objectives
The objectives that lies behind this project are mainly as follows.
 To find out the corporate responsibilities that are social in the organization of
Air New Zealand.
 To find out the budgeting and financial strategies of the company.
 To find out the technology that is used in the company which includes access
of social media.
1.3 Scope
The main scope of the project is to analyse and study the data of the company from all the
official websites that are available and also other websites that are available online. The
business of the Air New Zealand is to cover the social responsibilities of the organization,
budgeting and finance of the organization and also the technology of the organization. The
way these factors affects the productivity and growth of Air New Zealand are also discussed
in this research paper. Factors like communication of the company, leadership of the

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organization and the design and structure of the organization are not discussed as such in this
research paper. It took almost a three week of time to collect all the data for the company. All
the data that are collected by the company are the secondary data that are collected from
books that are online, the official website of Air New Zealand, annual report of the company
and the news article that had been published online.
2.0 Literature Review
2.1 Topic 1: Social Corporate Responsibility of the Organization
Corporate social responsibility can be defined as the form of corporate self-regulation which
is integrated into the business model. The policy functions as a self-regulatory process which
monitors the business and also ensures that it has an active compliance in accordance to the
spirit of the law.
Air New Zealand is involved to maintain the social corporate responsibility and also has
different policies that are followed strictly in the operations done by Air New Zealand
(Airnewzealand.com., 2017). The major social corporate responsibilities of the company are:
Intolerance – The criminal common offenses such as corruption, human trafficking, slavery,
bribery and many others are strictly intolerant in Air New Zealand (Howie, 2015). The
company of Air New Zealand takes special guidance and rules to all its employees who work
in the company (Walsham, 2016). Immediate actions are taken by the Air New Zealand if
their passengers also commits some offence. The company takes immediate action by
handing the offender to the authority who are responsible for the offences for their
punishment and trail (Brodie, Benson-Rea & Medlin, 2016).
Risk Management of Air New Zealand– The risk management factor is considered as one of
the most important factor of all the company (Treasury.govt.nz., 2017). Air New Zealand

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considers gives risk management the topmost priority so that they can mitigate all the risks
faced by the company. From analyzing in general, there are many risks that are involved in
the company which includes operational, legal and regulatory which hampers the operations
of the company (Francis & Lyon, 2016). The organization is now taking into considerations
the processes of the risk management in their topmost priority list. This venture would be
able to boost their working procedure of the management of any kind of risk for the
passengers as well as the employees of the company. The company follows the dream of
developing the most sustainable environment in the company.
2.2 Topic 2: Finance and Budgeting of the Organization
An organisations financial planning includes the use of budgets for operation and for the
capital of the processes. Creation of an annual operating budgeting report can be said to be
one of the most important task of the organisation.
The two most important practices of the management practices of any company or business
organization are budgeting and finance. The budgeting and the finance mainly decides the
coming business ventures of a company (Walker, 2015). Not having proper profit and
balanced investment, any kind of business can be declined or disrupted. Air New Zealand
takes all the necessary steps and the annual investments that are required in the company for
making a balanced revenues and annual profits. Air New Zealand prepares the financial
statements with the New Zealand GAAP (New Zealand Generally Accepted Accounting
Practice) that was according to official statement that was released by the company (Birchall,
Murphy & Milne, 2015). New Zealand GAAP of New Zealand mainly has equivalent New
Zealand IFRS (New Zealand International Financial Reporting Standards) and also other
financial standards of reporting that are applicable that are appropriate to the entities which
are profit oriented.

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The financial statement of Air New Zealand indicates the New Zealand IFRS and the New
Zealand IFRS (Wang et al., 2016). Budgeting strategies of a company plays an important role
in maintaining the strategies of Air New Zealand that are used to fix the ticket prices and also
release new offers, schemes and offers to customers which they can use with certain
occasions and conditions (Zaloom, 2016). The company of Air New Zealand has many tour
companies and also hotel chains as their partnerships so that they can release the schemes that
are joint where customers are able to get some discounts on the prices of hotel who are their
partners, if they use the flight of Air New Zealand. For example, recently Air New Zealand is
offering an offer of Asia tour which enables their customers to buy tickets of flights mainly to
Asian destinations such as Hong Kong, Shanghai and Tokyo with a discount price which
ranges from 459 dollar to 549 dollar (Finkler et al., 2016). There is an objective for the
company behind offering such offers.
The main objective behind this offer is that the company increases the base of the customer
which boost the revenue of Air New Zealand. This helps to enable the policy of global
expansion of Air New Zealand (P-airnz.com., 2017d). For starting up the business and
running its operations within the company, there is a need of finance in Air New Zealand.
The organizations also needs to expand the operations of the company by improvising new
technologies into new markets and also offers new services and new forms of goods
(Koppman, Mattarelli & Gupta, 2016). Air New Zealand has different options for increasing
their funds for their business. The methods they choose mainly depends on the methods that
needed by the organization and the roles that are available in their area of operation.
2.3 Topic 3: Organizational Technology of Air New Zealand
Organisational technology can be defined as the summation of the total amount of manmade
contrivances that can be used for the processing of new goods and services for the

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organisation. It includes software’s, machineries and other various electronics working as a
single component.
Latest technologies are mainly emphasized by Air New Zealand so that they can serve their
customers with all the expectations that are needed by the customers and also enhances the
travel experience for the passengers during the flights (Pagepulse.co., 2017). A desirable
investment is considered by the company for making technologies better every year. The
company of Air New Zealand can plan those robots for inspecting remotely in the aircrafts
without risking the life of staffs those who are involved in maintenance (Coles, Fenclova &
Dinan, 2014). The company of Air New Zealand also invests in platform of social media and
in software technology. The company invests on social media for promoting its business and
gives all the offers which attracts customers (O'Neill, Beauvais & Scholl, 2016).. There is a
server of big data in the company of Air New Zealand for managing and storing all the
business data. By the platform of social media, the Air New Zealand gives promotional offers
that includes offers, ticketing schemes, recruitment of information and many other activities
(Elias, 2012). The Air New Zealand Company has signed an agreement regarding technology
with the Sabre Company for distributing all their services and products globally.
Technology is used widely by Air New Zealand to advertise itself not only in New Zealand,
but all over the world. The company considered the Auckland region as a prime region for
the new forms arriving regarding the technologies (Lee, Seo & Sharma, 2013). All the latest
technologies that are available for an airline industry are implemented by the company so that
they may give best service to their customers, service provision that are on board, cancelling
the tickets and also involves online booking of the tickets (Lyon, 2016). By adopting these
technologies, the delivery service is not only improved, but markets the company as well.

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The process of queuing is eliminated by using these technologies that is needed while buying
a ticket.
The technologies that are adopted by the company enabled automatic tickets printing, which
are also available for online booking for the customers (Hallikainen et al., 2017). Online
ticket booking and online cancelling of tickets are available to the clients. The technologies
enhances ease and convenience in building travel arrangements (Tsui, 2017). The
entertainment board is also benefited by the use of technology and the passengers who are
travelling can get an entertainment by watching movies or play games on the LCD screens
that are provided by the airline (Piszczek, 2017). The technology is also used to increase the
utility of the travel experience. For instance, the company of Air New Zealand has new and
large planes for their fleet (Miller, 2014). The planes that are used by Air New Zealand is
Airbus A380 that is mainly capable of acquiring 550 passengers and also can travel with
more number of luggage. This advanced technology has enabled the ability of the company in
increasing their service and capacity.
3.0 Data Collection & Analysis Methods
3.1 Data Collection Method
There are two forms of data which can be used for the research methodology. They are
primary data and secondary data. Primary data can be said to be of the raw type which is
collected from the source. This means that the information is obtained directly from the
source with the help of survey, experimentation done observation with the hand of any kind
of data processing (Allen, Hurcan & Queyranne, 2016). Primary data is collected through the
help of the following methods: observation, interview, questionnaire, and schedules. In the
observation method the researcher obtains information which he can easily see and perceive
through visualization (Jung, 2017). In the interview process, the participants are contacted in

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a face to face question answer round where the interviewer collects and stores the data for
future use. In the questionnaire the researcher prepares a list of informative questions and
shares them with a random group of participants (Erkutlu, Tanç & Koçyiğit, 2017). The
answers are recorded and analysed for the understanding of the research situation. Schedules
are a little different from the process of questionnaires in respect that the question leaflets are
shared with a group of participants who have been selected based on the criteria for the
research (Murphy, 2017). For the method of secondary data collection the researcher has to
study different journal articles based on the objectives which he had set out before the start of
the study. This process provides the best quality of data and can be precise (Rogulenko et al.,
2016). The time required for this process if less and thus can help in the completion of the
data collection procedure easily.
3.2 Data Analysis Method
After the collection of the data has been completed the analysis of the data has to be done.
The process of data analytics can be done with the help of two methods: qualitative and
quantitative analysis. The process of qualitative analysis makes use of the details and
information collected from the research journals, company yearly revenue report and other
literature written by researchers. The process of qualitative analysis makes use of only
informative details and information (Short et al., 2016). For the process of analysis of the
quantitative analysis there needs to be the use of numerical values. This process of numerical
data analysis is collected with the help of survey responses and other methods of literature
study.
3.3 Data Collection and Analysis Method Used
For this study, the process of the secondary process of data collection has been conducted to
make the findings and the analysis strong for the research (Gupta, Briscoe & Hambrick,

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2017). The secondary method of data collection of this research has been completed with the
help of research journals based on the aims of the research study and company’s annual
report. The data and details collected from various sources has been studied carefully and
then concluded to understand the objectives to be followed for the completion of the research
study (Galaskiewicz, 2016). The literature studied for the research report has been studied
and discussed in details in the literature review of the report. The details collected from the
literature has provided valuable insight into the organisation based on the understanding of
the objective of the study in relation to the company chosen for this report (Kuratko et al.,
2017). With the help of the details collected a comparative study has been conducted to
understand the overall standing of the query of the participants of the study. Data has been
collected from the official website of Air New Zealand. However, in order to get a better
view, data has also been collected from sources such as online textbooks, the company’s
annual report and some news articles. This helped in making the research study of the
company better in terms of data as well as in terms of understanding the objective of this
research study (Schrempf-Stirling, Palazzo & Phillips, 2016). As the data collected from the
various sources of text details are in the form of textual details thus it would be helpful for the
completion of this report to work in the form of qualitative method only. This has been
followed as there are no amount of numerical data for the performance of the quantitative
data analysis method. Thus for the completion of this report, the process of secondary data
collection and qualitative data analysis has been performed. The analysis is about how Air
New Zealand Company copes up with its management practices in the market.
4.0 Data Analysis and Findings

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4.1 Topic 1: Social Corporate Responsibility of the Organization
The company has been known to allow the use and provision of some of the major social
corporate responsibilities to the employees of the organization (Howie, 2015). The
intolerance of any kind of criminal issues in the company has been made completely
intolerable in term of company policy. Air New Zealand has strict tolerance towards common
criminal offenses related to corruption, human slavery, bribery, slavery, and others. The
company has special provisions for the controlling of such activities in their field of work as
per the regulations set out by the government of the country. If such kind of offences are
found to be conducted by any one of the employee then they are instantly terminated from
employment (Howie, 2015). If one of the passenger is found to be conducting such offensive
work in the grounds of the company, then they are immediately apprehended and handed
over to the proper authorities for their trial. The company also follows the process of risk
management for the assessment of all kinds of risk to be associated in the company (Howie,
2015). Being an airlines company there needs to be the topmost priority in terms of security
for the employees as well as for the clients. The company has assured that they follow the
best quality risk management and has an active risk aware environment in their working
ground (Walsham, 2016). They have set up the best quality sustainable environment for the
workers to work properly.
4.2 Topic 2: Finance and Budgeting of the Organization
With regards to their financial and budgeting scenario of the company, the company is able to
follow the best form of profit margin as well as keep their budget task in check. The
understanding of the resources and research study of the budget of the company shows the
proper use of their resources in order to maintain their working grounds (Walsham, 2016).
Budgeting strategies applied by the company relates to the use of offers and schemes for the
clients during certain occasions and under conditions. This availability of the offer makes the

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company meet their working target in terms of budget and finance (Walsham, 2016). They
also offer major certain offers for the customers travelling to select locations in order to
increase their base of operations. As indicated by the official articulation discharged by the
organization, "Air New Zealand readies its financial statements as per New Zealand
Generally Accepted Accounting Practice ("NZ GAAP"). NZ GAAP comprises of New
Zealand reciprocals to International Financial Reporting Standards ("NZ IFRS") and other
material financial reporting standards as proper to benefit arranged substances (Walker,
2015). These financial proclamations consent to NZ IFRS and International Financial
Reporting Standards ("IFRS")." Air New Zealand has additionally participated in associations
with different visit organizations and inn networks keeping in mind the end goal to discharge
some joint plans where the clients will have the capacity to get rebates on the accomplice
lodgings' costs in the event that they utilize the Air New Zealand flights (Walsham, 2016).
For example, right now, Air New Zealand has an uncommon Asia visit offer (substantial just
till a specific date) that will enable clients to purchase flight tickets to Asian goals like
Shanghai, Tokyo and Hong Kong at marked down costs going from $459 to $549.
4.3 Topic 3: Organizational Technology of Air New Zealand
Air New Zealand emphasizes on the use of the latest technology for the provision of services
to the passenger as well as for the enhancement of the overall travel experience during the
flights. Hence, the company makes a considerable amount of investment for the development
of better technologies every year (Walker, 2015). Both the operational responsibilities along
with the budget and finance, follow up on the areas can be effectively managed with the help
of proper technology in the work place of the company. The company invests in the social
media enhancement for the promotion of their business and their offers so that they are able
to reach a higher number of customers and eventually profit for the company (Walker, 2015).
The Air New Zealand is proud of its working procedure and the management it uses for the

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controlling of their workers and customer clients. The company is able to provide the best
experience for all of the experienced worker.
5.0 Discussion
5.1 Topic 1: Social Corporate Responsibility of the Organization
Based on the research finding it can be said that the company is able to provide the best social
environment for the workers in the work place. Air New Zealand is strictly intolerant to
common criminal offenses like bribery, corruption, slavery, human trafficking and others
(Birchall, Murphy & Milne, 2015). The employees of the company are able to work in the
company in the best environment at the work place. The social compatibility of the work
environment can be considered to be the best for the workers of the company. They are able
to work within the best environment and thus makes the workers happy to work with the
company. The organization is now taking into considerations the processes of the risk
management in their topmost priority list. This venture would be able to boost their working
procedure of the management of any kind of risk for the passengers as well as the employees
of the company. The company follows the dream of developing the most sustainable
environment in the company.
5.2 Topic 2: Finance and Budgeting of the Organization
Finance and budgeting can be said to be two of the most important management practices
which is being used in the business organization. Without the proper management of the
balances finance and budgets the company would fall within days. The company is able to
work on their profit for the best margin reaching profit (Birchall, Murphy & Milne, 2015).
They are able to control their money in the company for the use in the proper area. The
financial activity of the company is always assessed so that the workers are able to work
without any hindrance. The process of the use of the budget helps in the making of the

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company. The budget strategy in the oragnsiation plays an important role in the management
of the strategies for the company as well as in keeping up with the process of offering better
customer satisfaction from the products and services (Zaloom, 2016). The main objective of
the use of these schemes are to increase the customer base that will be able to boost the
revenue for the company.
5.3 Topic 3: Organizational Technology of Air New Zealand
Air New Zealand has been able to provide emphasis on the use of the latest model of
technology for the provision of the services to the passengers. They have also enhanced the
complete travel experience for the flight users. Thus it can be said that the company is using
the best form of investment for the use of the technology every year in their workplace. The
company uses the best technology in their work place to control their working procedures and
also for the maintenance of their advertisements and their promotions (Zaloom, 2016). The
use of the technology helps in making the budget of the company compatible for the working
environment. Air New Zealand has now been able procure their own private big data server
which they uses for the management and the storing of all types of business information and
data. In the social media platform the compant has been able to promote their services along
with the ticket offers, schemes and recruitment information. This helps in the safeguard of all
their data securely for the analysis which would help them to control their customers and
their work effectively (Zaloom, 2016).
6.0 Conclusions
There are almost 11,000 people across Australia, United Kingdom, Asia, America and New
Zealand who are employees of the company Air New Zealand. The aim of the company is to
be a leading employer of the world and also have initiatives of range in their place so that
they can achieve their goal. This includes commitment to promote diversity in the workplace

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and also implements the safety that is best suited in class and practices involved in employee
wellbeing. In the year 2015, Air New Zealand took a major campaign internally so that they
can identify the initiatives for the sustainability that are considered as the most important part
for the employees and customers of Air New Zealand. The analysis of data that are done
about the Air New Zealand gives the feedback of the customers those who have their
experience with the Air New Zealand. Main key learning that are included for supporting this
research paper are inspiration knowledge and sharing knowledge which helps them to inform
and then inform all the young citizens of New Zealand. It also emerges the businesses of New
Zealand, all the programs are ensured that have a coverage nationwide. And lastly, the
company supports in protecting the endangered wildlife of New Zealand and also impacts on
the climate change of New Zealand.
There is a workforce that is highly engaged that will increase the productivity, delivery and
the innovation of the company. This ensures that the business is growing in sustainable way.
The company of Air New Zealand is proud to have workforce with diversity and is also proud
to have diversity in thought, customer insight and innovation. Air New Zealand ensures
benefits from all the experience of age, gender and ethnicity. There is a good representation
of all these groups which involves roles within the company. The company of Air New
Zealand gives the value of diversity and also recruit the ability of experience and skills of all
the applicants. The company of Air New Zealand also follows an equality in gender.
They aim to have 40 percent of their Senior Leadership Team as female employees by the
year 2020. In the year 2015, the company launched a network for women globally for
offering additional events, mentoring the female employees and also provide coaching for Air
New Zealand. By the year 2020, the target of the company is to have 33 % of female
membership in the senior team by the end of June, 2015 which has 16 % in 2013. The

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company of Air New Zealand has involved strategies that are innovative which helps them to
grow the business of the company. The company has performed good and also focuses on
innovation culture and improve the quality of their services. This leads the company to have
bright ideas which can help to improve the services they provide. The goal of the company is
not only to serve the people of New Zealand, but wants to give service to the whole world
and become an icon globally in terms of success.
Still now the company is developing new strategies to reach to a better place and be
successful in better heights. This regular monitoring helps to measure the financial growth of
the company, measure the performance of employees and many other parameters which
determines the quality. This process not only includes quality improvement, but also ensures
the satisfaction of the company by accessing the levels of satisfaction of customers and ways
in improving them. In conclusion, Air New Zealand helps to improve the gap in the bridge
that is between positions where the company lies and where the company wants to reach by
identifying the deficiencies and work against fulfilling those deficiencies.
7.0 Recommendations
For the benefit of the company, it would be recommended that the company is able to process
their use of technology for the benefit of their company. The customers would be happy if
they are able to find the best offers when travelling to outstations which would make them to
come back to the company for future travelling.
The company should also start using their social media in order to make the use of their
promotional activities. The option of paid promotion should be availed by the company.
Though a certain amount of money would be wasted in the process, the final result of this
would help them to make a stronger statement for the promotional advertisements.

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Apart from this the company should also be able to understand the working environment of
the workers so that they are able to complete the work with utmost care. The security details
of the airports needs to be kept in check at all times.
Social corporate acceptability should be made the company’s main priority for the
maintenance of their work. Keeping the work place clean of any kind of drawbacks and risks
should be made the best quality of working environment. The risk management should be
shared among all the airports of the company and to be followed as soon as the risk is seen.
Mitigation of all types of risks should be considered for the completion of a task so that there
are the least amount of casualty measured for the work.

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