Air New Zealand ups the ante

CALL it the little airline that could.

Air New Zealand is flying high with the big guys, installing seats that open to flat beds in business class, adding TV screens for all seats, doubling the size of its LAX lounge and adding a high-end economy class.

It’s all part of an $800-million overhaul of the airline, whose network includes nonstops to Auckland from LAX, San Francisco and Honolulu; to Christchurch from LAX; and to London from LAX.

Key is a $112-million retrofitting of the 747-400 fleet that serves North America, expected to be finished by spring. So far, one jet flying out of LAX is newly configured.

Like Virgin Atlantic’s seat-bed, Air New Zealand’s version offers a 22-inch-wide seat that converts to a level bed 33 inches wide at the shoulders and 79 1/2 inches long. A partition, inset with a 10.4-inch personal video monitor, separates sleepers.

Matthew J. Bennett, editor and publisher of FirstClassFlyer.com, a consumer buying guide to first-class and business travel, is enthusiastic about the changes at Air New Zealand, which he called “a little-known gem.”

“Business travelers will be flocking to Air New Zealand,” he said.

With the upgrades, Bennett rated its business class second only to Virgin Atlantic -- which include such extras as massages and a bar in the cabin. He ranked British Airways, with somewhat smaller beds, “a close No. 3” worldwide.

Air New Zealand’s Business Premier class replaces its former first class but at a cheaper fare, said Gerard Gilmore, the airline’s vice president for the Americas, United Kingdom and Europe. Whereas a round-trip ticket between LAX and Auckland costs about $10,000 in first class, Business Premier goes for $5,600 to $7,800, he said.

The revamped 747 has two other classes: Pacific Economy and the new Pacific Premium Economy, which shares space on the upper deck with Business Premier. Pacific Premium has 5 to 6 inches more legroom and costs about 25% more than economy, Gilmore said.

In California, the airline began Auckland service out of San Francisco in June 2004. On Nov. 30, it will double the frequency, from three to six times a week.

LAX, the airline’s gateway for nearly 40 years, accounts for 70% of Air New Zealand’s revenue in North America. Flights include two daily nonstops to Auckland (plus more seasonally, in winter), thrice-weekly nonstops to Christchurch and through service to Australia and South Pacific islands.

The airline’s refurbished LAX lounge, opened this month, now sprawls over 7,550 square feet.