Air New Zealand makes travel cheaper for regional customers
Air New Zealand today made domestic travel even more affordable for Kiwis.
Regional New Zealand is the biggest winner from fare reductions announced by Air New Zealand Chief Executive Officer Rob Fyfe.
Mr Fyfe said the new pricing strategy was designed to help stimulate travel and tourism within New Zealand, and was the latest initiative from the airline’s wide-ranging review of domestic operations that began in early 2007.
The changes, effective today for travel from 23 February, mean reductions of 9%-27% on lead-in Smart Saver fares on almost 40 domestic routes (see table below for examples)
These will be introduced alongside reductions of 20%-30% on top end fares on a number of regional routes popular with business customers, and reductions of
15% on top end fares on the domestic main trunk (see table below for examples).
Mr Fyfe said that over the past two and a half years Air New Zealand had boosted its seat capacity on regional routes by nearly 50% and now needed to turn its attention to encouraging even more Kiwis to get out and see more of their country.
“Air New Zealand is more committed than ever to making travel more affordable and accessible for Kiwis living outside the main centres,” he says.
Over the past two and a half years Air New Zealand has invested more than $350 million dollars in new aircraft dedicated to regional routes, which has increased capacity by 46%.
“This means customers have access each week to an extra 35,000 seats throughout the domestic network. In particular, there have been significant increases into and out of Nelson (69%), Napier (45%), Palmerston North (30%), New Plymouth (60%) and Tauranga (67%).
“Air New Zealand is committed to growing our business and can only do that by stimulating demand. There is no benefit to us in flying empty seats. We take the view that the most effective way to encourage Kiwis to travel more frequently, and to more domestic destinations, is to offer them fares that are even more competitive and appealing than they are today,” Mr Fyfe says.
Group General Manager Short Haul Airlines Bruce Parton said he was pleased his team could continue to deliver low prices to customers across the country.
“We also have listened to the business community, which has asked us to review our top-end fares, typically bought at short notice close to the time of travel when all the cheaper seats have been sold. We’re expecting that the reductions announced today will make these fares much more attractive to our business and last-minute customers.”
Mr Parton said Air New Zealand’s strategy was to drive revenue and its return to shareholders by boosting the number of people travelling rather than charging higher fares.
“Our grabaseat initiative has had a marked impact on the amount of spontaneous travel within New Zealand and we expect that today’s price cuts will further stimulate the number of Kiwis enjoying our domestic services.”
However, continuing pressure on costs, notably fuel and airport charges, which particularly affected some of the smaller, more costly routes, meant Air New Zealand was not in a position to offer across-the-board reductions.
Air New Zealand is committed to spending another $50 million on regional fleet over the next 18 months, allowing it to open up new routes such as the direct Whakatane-Wellington service announced by Eagle Air last week. The airline has also recently announced that it is evaluating prime-time 737 jet services into at least two new regional ports.
“Our regional airlines – Air Nelson, Eagle Air and Mt Cook – boast fleets with best-in-class aircraft such as the Bombardier Q300 and Beech 1900D that are ideal for our local conditions, and provide us with a great deal of flexibility in how we manage our schedules and develop our domestic network,” Mr Parton says
“The improved economics of the regional fleet and introduction of more direct services between regional centres has also played a role in allowing us to reduce our fares.”
LEAD IN SMART SAVER ONE WAY INTERNET FARES EXAMPLES
FROM TO WAS NOW % Decrease
Auckland Dunedin $119 $99 17%
Blenheim Auckland $119 $99 17%
Christchurch Queenstown $89 $79 11%
Dunedin Wellington $109 $89 18%
Gisborne Auckland $89 $79 11%
Hamilton Christchurch $129 $99 23%
Kaitaia Auckland $79 $69 13%
Kerikeri Auckland $79 $69 13%
Napier Wellington $84 $74 12%
New Plymouth Wellington $84 $74 12%
Nelson Christchurch $79 $69 13%
Palmerston North Christchurch $89 $79 11%
Rotorua Christchurch $129 $109 16%
Tauranga Christchurch $134 $109 19%
Taupo Auckland $79 $69 13%
Wanganui Wellington $74 $64 14%
Whakatane Auckland $79 $69 13%
Wellington New Plymouth $84 $74 12%
Whangarei Wellington $129 $109 16%
Queenstown Auckland $139 $119 14%
Hokitika Christchurch $74 $64 14%
Oamaru Christchurch $89 $79 11%
Westport Wellington $89 $79 11%
Timaru Wellington $109 $99 9%
Wanaka Christchurch $99 $89 10%
Queenstown Wellington $149 $109 27%
Invercargill Christchurch $89 $79 11%
TOP END ONE WAY INTERNET FARE
FROM TO WAS NOW % Decrease
Auckland Wellington $420 $357 15%
Christchurch Auckland $533 $453 15%
Wellington Christchurch $335 $285 15%
Auckland Dunedin $620 $465 25%
Palmerston North Auckland $334 $234 30%
Invercargill Christchurch $369 $277 25%
Invercargill Auckland $578 $491 15%
Wellington Invercargill $521 $365 30%
Hamilton Wellington $339 $237 30%
Dunedin Christchurch $320 $224 30%
Dunedin Wellington $460 $322 30%
Napier Auckland $329 $263 20%
Nelson Auckland $439 $351 20%
Queenstown Christchurch $414 $290 30%
Queenstown Wellington $649 $487 25%
Editor’s Note
Domestic fare price structures
Air New Zealand currently offers three fare classes for domestic travel – Smart Saver, Flexi Saver and Flexi. Lead in Smart Saver fares are the lowest available everyday fares, followed in price by Flexi Saver and Flexi. Grabaseat offers ludicrously low fares on select routes that change out every day.
Smart Saver fares are designed to provide great value options to customers booking well in advance of travel, whilst the two flexible fare options, often purchased closer to the time of travel, accrue Airpoints Dollars and allow changes to be made at less cost.