Air New Zealand cuts some domestic airfares by 50 percent

By NZPA

Wednesday 31st July 2002

Air New Zealand has cut domestic ticket prices by up to 50 percent with its new no-frills domestic fares announced today.

Air NZ's single-class domestic Express service, to be launched in October, will replace full meals and drink selections with a snack, tea, coffee and water.

Express will replace the current business and economy class flights in an effort to boost Air NZ's sales and return to profit.

Air NZ managing director Ralph Norris said in Auckland this morning that fares on the main trunk route will drop by about 28 percent, and by an average of 20 percent over the whole domestic network.

Mr Norris said the new fares will make flying the most "realistically priced" transport option within New Zealand.

"Today's announcement on fares represents the most significant fare reduction programme yet undertaken by Air New Zealand across its domestic services," he said.

"Our promise is that twice as many fares will be sold at the lowest prices -- our objective is to encourage people to fly.

"These new low fares are possible because of fundamental changes we have made to our domestic network."

Air NZ, which reported a loss of $1.43 billion last year after the collapse of Ansett, is encouraging customers to book flights through the Internet.

The airline has restructured its domestic and short-haul services in a bid to head off competition from Qantas, which recently announced it would increase trans-Tasman flights.

Mr Norris said Air NZ will retain its air points reward programme, although the airline will announce changes to its system in a few weeks.

However, the cheapest `Smart Saver' fares will not attract air points.

As part of the Express service, the aircraft will be fitted with 136 seats compared with the 122 at present with the removal of business class seats.

Air NZ has also begun upgrading its Auckland Koru Club lounge.

In the three categories of fares -- Smart Savers, Flexi Savers, and Fully Flexi -- the lowest fares will only be available on the Internet.

The new fares will be available from November 1, and bookings can be made from today.

The cheapest Smart Saver fare between Auckland and Wellington will be from $59 one-way, between Auckland and Christchurch it will be $69 one-way, and between Wellington and Christchurch it will be $39 one-way.

Those prices exclude levies and surcharges.

The lowest Fully Flexi fare will be from $199 one-way between Auckland and Wellington; from $249 one-way between Auckland and Christchurch; and from $149 one-way between Wellington and Christchurch.

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