Air NZ cutting prices

Dunedin and Queenstown customers are among those who will benefit from cuts in fares to Australia, with 6%-11% coming off the southern sector prices.

Air New Zealand is to cut long-term lead-in fares to Sydney, Melbourne, Brisbane and the Gold Coast by an average of 15%.

Fare reductions were effective from October 14, Air NZ general manager of Tasman Pacific Airlines Glen Sowry said.

Dunedin prices to all three Australian destinations would fall 8% on the lead-in Smart Saver fares and the more expensive range of fares down between 6%-9%.

Queenstown's fare to Brisbane would fall 11% and its fares to Sydney and Melbourne were expected to be around similar levels, Mr Sowry said.

Queenstown, Christchurch, Wellington, Hamilton and Auckland fares were dropping to stimulate demand on the highly competitive Tasman market, which had an over supply of capacity.

Air NZ was investing almost $60 million in fitting its fleet of 13 A320 and five Boeing 767 aircraft on Tasman and Pacific Island routes with new personal on-demand in-flight entertainment, which customers were able to watch gate-to-gate, he said.

The 767 and A320 fleets were also being reconfigured to create a new zone in the economy cabin to provide greater legroom for regular Tasman and Pacific Island travellers.

The first of the refitted 767s and A320s were now in service, with the fleet upgrade to be completed by the end of the year.

"Given this significant investment in our Tasman fleet it is imperative that we fly full planes," Mr Sowry said.

 Extra reporting by NZPA

 

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