This Star Alliance member is betting big on ultra-long-haul routes, new aircraft with retrofitted interiors and a never-before-seen bunk bed setup for economy class.
Air New Zealand has been a trailblazer in aviation creating new products, like the Sky Couch offering the first fully-flat bed in economy class, that have pushed the limits for long-haul travel. For an airline in the far corner of the Southern Hemisphere, the Star Alliance member continues to make noteworthy updates that influence aviation around the world.
This spring, the airline will unveil its new business class cabin and become the first carrier to complete a nose-to-tail retrofit of the Boeing Dreamliner aircraft. There are also details on the airline’s next game changer: the SkyNest. This will be the first bunk bed, flat-bed product for economy class flyers on long-haul flights. It has been in the works and under certification processes for many years, and CEO Greg Foran shares an update on something that many passengers (and interested airlines) are eagerly watching.
This all comes at a time when Reuters reported last year that the carrier was facing a 61% drop in annual profit in the face of tough competition, including from all three major U.S. global carriers that have begun flights to New Zealand. The airline has also revised its environmental targets in the face of strong headwinds for acquiring new aircraft and eco-friendly fuel. Foran explains how the airline is addressing these concerns and still unveiling new onboard products that have the aviation industry talking.
Ramsey Qubein: What are you most excited about for the airline in 2025?
Greg Foran: 2025 marks Air New Zealand’s 85th anniversary—a milestone we’re immensely proud of. We may be a small airline from the bottom of the world, but for 85 years, we’ve proven that we can hold our own on the global stage, and that’s something worth celebrating.
Air New Zealand will soon become the first airline in the world to retrofit a Dreamliner from nose to tail. In just a few months, this transformed aircraft will feature a completely redesigned interior—including an upgraded Business Premier and the all-new Business Premier Luxe cabin (an upgraded business class seat with more space and privacy door). Also coming soon this year is a new uniform for staff designed by globally acclaimed Kiwi fashion designer Emilia Wickstead, which is a reflection of the airline brand and Aotearoa New Zealand.
RQ: When will the new Business Premier product launch?
GF: Business Premier and Business Premier Luxe will debut on the retrofitted Dreamliner in May. Given our geographical location, the majority of our customers travel overnight to reach New Zealand. Designers have dedicated over 170,000 hours in the past five years to developing a premium onboard experience across all cabin classes. Business Premier Luxe is a new addition to our offering, providing customers enhanced privacy with a closing door and space for two people to dine together at the front of business class.
The entire cabin design draws inspiration from the landscapes and cultural identity of New Zealand, allowing customers traveling in Economy, Premium Economy, and Business Premier to feel a connection to Aotearoa as soon as they step onboard.
RQ: What about the economy bunk bed product?
GF: SkyNest is my favorite example of innovation and pushing boundaries at 35,000 feet. From 2026, customers traveling on our ultra-long-haul flights will be able to book a lie-flat rest in one of the sleep pods. The SkyNest is something that’s never been done before in commercial aviation so we’re incredibly excited to see this take to the sky next year.
Each SkyNest will feature six pods, available for four hours at a time, that includes a full-size pillow, sheets and blanket, ear plugs, reading light, USB outlet, ventilation and lighting designed for maximum rest.
RQ: ANZ was the first airline to dial back its science-based climate target for 2030. Why is this such an industry-wide challenge?
GF: Stepping back from our science-based target last year was not a decision we made lightly. However, it became clear that several critical levers required to meet the target, including access to more efficient aircraft, the availability of alternative jet fuels, and the necessary regulatory and policy support, remained uncertain and largely beyond our control.
Decarbonizing aviation is one of the most complex challenges facing the industry. We remain committed to 10% sustainable aviation fuel by 2030, and the long-term commitment to reaching net-zero carbon emissions by 2050 remains unchanged.
The transition to sustainable aviation fuel (SAF) represents the most significant opportunity to reduce airline emissions, yet its production and availability remain limited. For meaningful progress to be made, there must be greater collaboration between airlines and governments to establish the policy frameworks and investment incentives needed to scale SAF production and adoption.
We remain committed to working alongside industry stakeholders, policymakers and technology partners to drive the solutions required for a more sustainable future in aviation.
RQ: What else is new onboard and in your lounges?
GF: We call our menu “A Taste of Aotearoa,” which showcases the country’s finest regional produce, taking local ingredients and unique New Zealand flavors to the world, including from regions like Fiordland, Hawke’s Bay and the Coromandel.
The latest menu delivers a nod to iconic Kiwi favorites such as confit potato with onion creme fraiche whip and chives, a twist on chips and dip, and ambrosia ice cream with raspberry frozen yogurt, milk chocolate shards, marshmallow and sour cherry swirls.
This year we will also be launching our very own wine label crafted in collaboration with renowned New Zealand wine producer Villa Maria. Named Thirteen Forty Five in homage to the distance of our first-ever flight between Auckland and Sydney, passengers will be able to enjoy a signature sauvignon blanc and a pinot noir curated specifically to be enjoyed while in the air.
RQ: Are there any new destinations you are considering, like a return to long-haul flights to London?
GF: While we are currently facing challenges with grounded aircraft due to engine issues, we’re completely focused on flying our existing network well for our customers. When these headwinds ease, we will absolutely be looking at spreading our wings. London holds a special place in the hearts of Air New Zealanders, so we do hope to be back there one day in the future.
This story was originally published on forbes.com.
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