Corporate Social Responsibility at Air New Zealand

Aviation industry exerts great influence on growth of national economy and it has an overriding effect on national security. Air New Zealand is an international airline registered and based in New Zealand. It provides cargo transport services and air passenger within New Zealand, as well as to and from major regions. To start with, all outside factors that may influence an organization constitute the external environment .This report will first describe the external environment through three perspectives: economic, technological and global forces, then the major CSR issues and the stakeholders. Finally, it will discuss how stakeholders influence the CSR policy and the implication of it. Air New Zealand has made significant progress in the previous year according to a favorable economic climate and the company records a net profit after tax of $215 million. However, fuel prices continue to reach a record level - the price of jet fuel averaged US$90 per barrel this year, there is a US$13 increase per barrel compared to last year and drives a $143 million of the total increase in fuel cost. As fuel is the largest operational cost of aviation industry, continued high fuel costs remain a serious concern and it provides the airline industry with a significant challenge.
Secondly, the success of many organizations depends on how well they identify and respond to external technological changes. Air New Zealand will be the first airline in the world to receive the Boeing 787-9 which has longer range and greater capacity to enter airline service next year. The 787-9 has exceptional fuel efficiency and will offer the economics of large jet transports to the middle market, using 22 percent less fuel than any other jet of its size. This can help to achieve new levels of international competitiveness as it offers longer range and a lower cost per seat. Moreover, an upgraded web site and internet booking engine were released. A new flight information system has further