Air NZ fare jump raises Opposition ire

By Phil Boeyen, ShareChat Business News Editor

Wednesday 31st October 2001

The National Party is criticising recent increases in Air New Zealand's (NZSE: AIRVA) trans-Tasman airfares, warning that they will have a big impact on the country's tourism industry.

The fare increases were revealed to the travel trade last week and push the price for a return ticket to Sydney, Melbourne, Brisbane, Cairns or Perth rise up by between $50 and $100, depending on the class of ticket.

National's tourism spokesperson, John Luxton, is unhappy about the higher fares and says the airline should not be making a quick buck at the expense of New Zealand's tourism industry.

"New Zealand tourism depends on Australia as its largest supply of inbound tourists which will further knock an all ready worried New Zealand tourism industry.

"The events of September 11 are just beginning to bite the tourist market and for the soon to be Government-owned airline to be the first airline to increase prices across the Tasman shows a callous approach to the New Zealand tourism industry.

Mr Luxton claims that the price increases are likely to be followed by price increases from Air New Zealand's subsidiary Freedom Air and Australian owned Qantas further hitting the tourist industry.

Air NZ spokesperson, Rosie Flay, says the increases are a purely commercial decision and the first time the airline has raised the fares since July last year.

She says the airline has been absorbing a lot of cost increases, such as fuel, and higher fares will help to cover those costs.

Comments from our readers

No comments yet