The move has upset Otago University Students' Association president Francisco Hernandez, who told the Otago Daily Times ''we're really disappointed''.
''Dunedin is already dominated by pretty much Air New Zealand alone. This means we're always locked in. This takes away the freedom of going home on short notice.''
The flights were first trialled for University of Otago and Otago Polytechnic students in 2009, entitling them to buy $39 stand-by fares, one way or return from Dunedin International Airport, to anywhere in the country - seat availability permitting.
That trial ended up being expanded nationwide in 2010, with a stand-by seat costing $69 for a one-way flight and services between Auckland and both Dunedin and Queenstown costing an extra $20.
Mr Hernandez said the fares were ''one of the best ways to get home on short notice''.
''I can't even recount how many times friends have been feeling homesick or stressed out and taken the opportunity to grab a stand-by fare to get home and focus or just be with family.''
The airline announced on its website stand-by fares would cease from May 6.
''While some of our customers have enjoyed Grabaseat stand-by fares, our ticket sales show the vast majority prefer cheap confirmed tickets over the uncertainty of stand-by travel,'' Air NZ spokeswoman Kelly Kilgour said last night. The final Grabaseat stand-by fares will be sold on Sunday, May 5.
''Students should also be aware that Air New Zealand regularly sells confirmed fares below the stand-by fare price. For instance, a stand-by ticket from Dunedin to Auckland is $89, but confirmed Grabaseat fares on this route start from $79,'' Ms Kilgour said.
