Air NZ cuts fares to the islands

[1279shp]

Air NZ to cut prices to Pacific Islands around 20pc
24 January 2004

Air New Zealand plans to cut prices to the Pacific Islands from the middle of this year.


The airline said yesterday it planned to expand its successful formula used domestically and on trans-Tasman routes to Pacific Island destinations.

Going on the cuts that have occurred across the Tasman, customers can expect fares to drop by an average 20 percent, spokesman Mark Street said.

Again, assuming a similar response to the Tasman fare cuts, that should translate into a 10-11 percent increase in passengers.

Air New Zealand currently flies more than 100,000 customers between New Zealand and Pacific Island destinations annually.

The lower fare structure will be launched in March for travel commencing mid-year.

Chief executive Ralph Norris said the new structure on Pacific Island routes was a logical next step for the airline following the success of the domestic Express Class and Tasman Express services.

Air New Zealand simultaneously announced it was becoming a key sponsor of the annual Pasifika event celebrating Pacific Island culture, which takes place at Western Springs in Auckland from March 12-14.

[troppo]

In response to this???

Fiji-NZ charter plans could slash air fares (http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID=3535284&thesection=business&thesubsection=transport&thesecondsubsection=aviation)

See also

Airwork 737-300? (http://www.pprune.org/forums/showthread.php?threadid=103360&highlight=airwork)

All things aside I wouldn't mind a cheap island holiday:cool:

[Kaptin M]

When a large airline (any) suddenly announces they are going to reduce airfares, one wonders whom they're trying to screw.
troppo's link (posted below) reveals the "bee in Air N.Z's bonnet".

Fiji-NZ charter plans could slash air fares

21.11.2003
By CHRIS DANIELS aviation writer
The Flight Centre travel agency chain and aviation company Airwork are set to launch an air charter operation between Fiji and New Zealand which could slash fares by up to 50 per cent on the route.

Such a venture would also fire up competition on the route, at present run as a cosy duopoly by Air New Zealand and Air Pacific, which is jointly owned by Qantas and the Fiji Government.

The travel industry publication Travel Today reported that the venture was planning up to five return weekly flights between New Zealand and Nadi, starting in February.

It said that, if successful, the venture would be the biggest single charter operation launched in the New Zealand market. Flights were likely to leave from Auckland.

Graeme Moore, managing director of the Flight Centre, confirmed that the chain was talking to the Auckland aviation company Airwork about setting up a charter programme.

He said he could not give any more details at this stage. No one from Airwork would comment.

Airwork, based at Ardmore Airfield, is one of New Zealand's biggest aviation companies, offering maintenance services and charters for fixed-wing aircraft and helicopters.

It is owned by its managing director, Aucklander Hugh Jones, and Canadian venture capital firm Emerald Capital.

Airwork runs rescue helicopter services and owns the ChildFlight air ambulance. It has a Boeing 737 jet that is used for charters and freight.

Whether a full service could be operated week in, week out with just one aircraft would be one potential problem to be addressed before charters with Flight Centre could start.

One industry insider said the idea of setting up a charter service to Fiji was not new, but had been stymied in the past by the attitude of the Fijian Government, keen to protect its 51 per cent ownership interest in Air Pacific.

Return flights of a similar length to Australia sell for less than $400, but flights to Fiji sell for $700 to $800 on Air New Zealand and Air Pacific. A charter could, in theory, slash fares to Fiji by as much as half.

The price of an Air New Zealand economy class return flight between Auckland and Nadi next April is quoted on the airline's website as $1100.

One source said lobbying of the Fijian Government by Virgin Blue had convinced the authorities that allowing more competition into Nadi would actually grow the tourist market, not just seize market share from Air New Zealand and Air Pacific.

Popular in Europe, charter flights offer only the barest of service and comfort, but are cheap.

If fares dropped far enough, a charter service could increase the number of people being able to travel to Fiji for winter holidays.

Some in the travel industry say the only problem with the Fijian tourism sector is a shortage of accommodation.

Planes flown by the charter operation could be branded with the Flight Centre name.

Airwork would operate and maintain the planes.

Airwork

Founded: 1936.

* Based: Ardmore Airfield, Auckland.Operations at Auckland International Airport; Wellington, Timaru and Christchurch airports.

* Services: Helicopter and fixed wing aircraft maintenance, aircraft charter and leasing, parts supply, engineering training. Manages joint venture cargo operation with NZ Post.

* Ownership: Takapuna-based Hugh Jones (54 per cent), Canadian venture capital firm Emerald Capital (44 per cent).


Out of ignorance may I ask why "the annual event celebrating Pacific Island culture" is spelt Pasifika? It appears to be a Bahasa (Indonesia/Malay) version of Pacifica.

[troppo]

...and also...

Freedom Air Confirms Flights To Fiji (http://www.scoop.co.nz/mason/stories/BU0312/S00292.htm)

what are the terms used in the past...anti-competitive behaviour, capacity dumping and predatory pricing???

[koru_kid]

Nice conspiracy theory, but unfortunately it bears no basis to reality. This has been in the works since early 2002.


Air NZ Outperforms Original FY02 Target

Wed 28 August 2002

....."The company's strategic focus is on the start-up of new low-fare Express Class domestic services in November, the development of specifications for the new short-haul international services to be introduced on Tasman and Pacific Island routes next year, and the revamping of long-haul services in 2004," Mr Palmer said....

Full press release here (http://www.scoop.co.nz/mason/stories/BU0208/S00235.htm)

[slamer]

So we can now afford the Airfare to Fiji.....lets hope the (Quality) accomadation follows suit.
________________________________________________

Such a venture would also fire up competition on the route, at present run as a cosy duopoly by Air New Zealand and Air Pacific, which is jointly owned by Qantas and the Fiji Government.
__________________________________________________

Not sure of their Freedoms (no pun intended) but dont Korean fly AKL or CHC to NAN?

[troppo]

i guess the timing of it is just a coincidence then :}