Air NZ

Air New Zealand has slammed a 78% rise in Dunedin International Airport user charges as profiteering at the expense of passengers.

Air New Zealand was being prudent in reviewing its operations in a volatile market place, Forsyth Barr head of research Rob Mercer said yesterday.

Air New Zealand has cut its domestic fares and introduced nationwide standby flights in an effort to get more Kiwis flying.

Earthquakes, rising fuel costs and declining demand for international flights are all expected to contribute to an estimated 17%-36% decline in after-tax profit for the national carrier, Air New Zealand.

Air New Zealand resumed flights to Queenstown yesterday, with one from Auckland arriving at midday.

Air New Zealand is flying high with customers and sharebrokers as it continues to fly its passengers while Qantas and other airlines keep their planes grounded.

Air New Zealand and the Wanaka Chamber of Commerce squared off yesterday at the Wanaka Airport plan change hearing on just how big Wanaka Airport could be in 20 years' time.

Qantas and Jetstar flights from Australia were still grounded yesterday as the rising Chilean volcanic ash cloud continued to disrupt the carriers' flight paths.

About 50 Auckland and Hamilton mums, their 80 relatives and well-wishers descended on Queenstown for a specially themed Air New Zealand flight to celebrate Mothering Sunday and New Zealand Music Month yesterday.

Air New Zealand is still regarded as having good earnings potential despite rising fuel prices, Forsyth Barr broker Suzanne Kinnaird said yesterday.