Air New Zealand slash domestic airfares
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Air New Zealand slash domestic airfares
NZ Herald
Air NZ cuts domestic fares by up to 50 per cent
31.07.2002
11.45am
Air New Zealand has cut some domestic ticket prices by up to 50 per cent with its new no-frills domestic fares announced today.
The single-class domestic Express service, to be launched in October, will replace full meals and drink selections with a snack, tea, coffee and water. Bookings can be made from today.
Flights on main trunk routes between Auckland, Wellington and Christchurch will drop by 28 per cent, and by an average of 20 per cent over the whole domestic network.
Air New Zealand Express will replace the current business and economy class flights in an effort to boost Air NZ's sales and restore profitability.
There are three categories of new fares, Smart Savers - which is the cheapest - Flexi Savers, and Fully Flexi.
A one-way Express service flight between Auckland and Wellington will cost as little as $59. Previously, the lowest price for a return flight between the two cities was $199. Under the cheapest new fares, the return trip will cost 40 per cent less.
People who pay the $59 fare, the so-called 'Smart Saver' fare, will not earn air points.
Air NZ managing director Ralph Norris said in Auckland this morning that 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."
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.
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, the lowest fares will only be available on the internet.
- NZPA
Air NZ cuts domestic fares by up to 50 per cent
31.07.2002
11.45am
Air New Zealand has cut some domestic ticket prices by up to 50 per cent with its new no-frills domestic fares announced today.
The single-class domestic Express service, to be launched in October, will replace full meals and drink selections with a snack, tea, coffee and water. Bookings can be made from today.
Flights on main trunk routes between Auckland, Wellington and Christchurch will drop by 28 per cent, and by an average of 20 per cent over the whole domestic network.
Air New Zealand Express will replace the current business and economy class flights in an effort to boost Air NZ's sales and restore profitability.
There are three categories of new fares, Smart Savers - which is the cheapest - Flexi Savers, and Fully Flexi.
A one-way Express service flight between Auckland and Wellington will cost as little as $59. Previously, the lowest price for a return flight between the two cities was $199. Under the cheapest new fares, the return trip will cost 40 per cent less.
People who pay the $59 fare, the so-called 'Smart Saver' fare, will not earn air points.
Air NZ managing director Ralph Norris said in Auckland this morning that 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."
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.
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, the lowest fares will only be available on the internet.
- NZPA
Last edited by Wirraway; 31st Jul 2002 at 07:13.
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heres my theory on QFs reponse 1/ QF matches or undercuts anz still providing full service, business class,meals,booze.2/ QF buys out origin pacific and does full service into their destinations,as when anz bought out air nelson.3/QF gets together with travel agents (who anz have cut commisions and dumped almost) and organise package deals to oz and domestic deals..
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The West Australian
Air NZ muscles Qantas with fare cuts
By Geoffrey Thomas
AIR New Zealand has slashed domestic fares by 20 per cent in a tit-for-tat move that signals it will not roll over for its Australia suitor, Qantas Airways.
In a strategic move, Air NZ has essentially reinvented itself in the image of Virgin Blue, eliminating that market niche and at the same time positioning itself just below Qantas"fares on NZ domestic routes.
But the strategy will need the full support of the public as the domestic market has been a major contributor to Air NZ's earning for years and accounted for all its EBIT of $NZ149.3 million ($128 million) for the year ending June 30, 2001.
Air NZ is expected to post a modest profit for the 2001-02 year of $NZ7 million and $NZ64.5 million in 2002-03.
Air NZ managing director and chief executive Ralph Norris hopes the new fares will encourage rail and car travellers to fly, with fares on some routes slashed by 50 per cent while the major routes have been cut by 28 per cent. The airline has increased the capacity of its 737s from 122 to 136 passengers, introduced no-frills in-flight service and renegotiated aircraft leases.
Rather than occasional seat sales, Air NZ has now put in place a range of permanent fares that will be available year-round on the internet.
-----------------------------------------------
Thurs "New Zealand Herald"
Price war as Qantas hits back
01.08.2002
By CATHY ARONSON
A price war on domestic flights has begun as Qantas prepares to slash fares to compete with Air New Zealand's new no-frills deal.
Air NZ yesterday cut its fares by up to 28 per cent for its new one-class, no-meal Air NZ Express. The service starts on November 1.
Qantas confirmed that it was reviewing fares after travel agents said the Australian airline had told them it would not be undercut.
But with prices set to fall, travel agents launched a campaign against Air NZ for axing their commissions.
The agents threatened to sell Qantas tickets instead and claimed the advertised Air NZ fares were misleading.
In the past month, Qantas has increased its flights and dropped its fares, with return Auckland-to-Wellington trips as low as $197.
Air NZ's lowest fare for the same journey has dropped from $199 return to $120 if booked over the internet.
But the fares will be limited to selected off-peak flights, they will not include airpoints and no refunds or changes will be allowed.
Air NZ's website received so many hits yesterday that it froze as travellers tried to log on for the latest deals.
The Consumers' Institute welcomed the competitive fares but questioned how long they would last if Qantas took a long-rumoured 25 per cent stake in Air NZ.
Air NZ yesterday reiterated that it had not reached an agreement with Qantas, despite four months of talks and claims by National Party leader Bill English last week that the sale was a done deal.
The Government owns 82 per cent of the national carrier after spending $885 million to bail it out last year.
Air NZ managing director Ralph Norris said the fares were not a one-off special and represented a new brand of no-frills flights designedto fend off competition.
"If it was a short-term offering, it would rebound on us and leave the opportunity open for someone else."
Australian budget carrier Virgin Blue has also been eyeing New Zealand after filling a gap in the Australian domestic market when Ansett collapsed last year.
The president of the Travel Agents' Association, James Langton, said the competition was waiting to pounce on Air NZ and the low prices would not keep them away.
"Air New Zealand have done this because competition is biting at their heels. They want to keep their dominance in the marketplace, but Qantas have informed me this morning that they will not be undercut."
Air NZ budget subsidiary Freedom Air will stop domestic flights next month, leaving Air NZ and Qantas to compete.
Mr Langton said the new fares were not cheap, because Air NZ had increased prices by 30 per cent in the past two years and reduced them now because of competition.
His association has placed an open letter in today's Herald urging travellers to use travel agents and warning them against booking online.
The travel agents claim the advertised Air NZ fares are misleading and could be undercut by Qantas.
Their campaign is in protest at Air NZ's decision to axe a 4 per cent commission in favour of online booking.
Mr Langton said Air NZ wanted to stop travel agents providing the cheapest deal.
He said the no-frills deals announced did not include GST and service levies and a $10 booking fee if not booked online.
That would increase the advertised $120 return Auckland-to-Wellington fare to $175.
He said the website generated only 10 per cent of Air NZ's bookings and the cheap deals could not be booked overseas.
Mr Norris reacted by questioning whether the travel agents were acting in their customers' best interest.
.
Air NZ muscles Qantas with fare cuts
By Geoffrey Thomas
AIR New Zealand has slashed domestic fares by 20 per cent in a tit-for-tat move that signals it will not roll over for its Australia suitor, Qantas Airways.
In a strategic move, Air NZ has essentially reinvented itself in the image of Virgin Blue, eliminating that market niche and at the same time positioning itself just below Qantas"fares on NZ domestic routes.
But the strategy will need the full support of the public as the domestic market has been a major contributor to Air NZ's earning for years and accounted for all its EBIT of $NZ149.3 million ($128 million) for the year ending June 30, 2001.
Air NZ is expected to post a modest profit for the 2001-02 year of $NZ7 million and $NZ64.5 million in 2002-03.
Air NZ managing director and chief executive Ralph Norris hopes the new fares will encourage rail and car travellers to fly, with fares on some routes slashed by 50 per cent while the major routes have been cut by 28 per cent. The airline has increased the capacity of its 737s from 122 to 136 passengers, introduced no-frills in-flight service and renegotiated aircraft leases.
Rather than occasional seat sales, Air NZ has now put in place a range of permanent fares that will be available year-round on the internet.
-----------------------------------------------
Thurs "New Zealand Herald"
Price war as Qantas hits back
01.08.2002
By CATHY ARONSON
A price war on domestic flights has begun as Qantas prepares to slash fares to compete with Air New Zealand's new no-frills deal.
Air NZ yesterday cut its fares by up to 28 per cent for its new one-class, no-meal Air NZ Express. The service starts on November 1.
Qantas confirmed that it was reviewing fares after travel agents said the Australian airline had told them it would not be undercut.
But with prices set to fall, travel agents launched a campaign against Air NZ for axing their commissions.
The agents threatened to sell Qantas tickets instead and claimed the advertised Air NZ fares were misleading.
In the past month, Qantas has increased its flights and dropped its fares, with return Auckland-to-Wellington trips as low as $197.
Air NZ's lowest fare for the same journey has dropped from $199 return to $120 if booked over the internet.
But the fares will be limited to selected off-peak flights, they will not include airpoints and no refunds or changes will be allowed.
Air NZ's website received so many hits yesterday that it froze as travellers tried to log on for the latest deals.
The Consumers' Institute welcomed the competitive fares but questioned how long they would last if Qantas took a long-rumoured 25 per cent stake in Air NZ.
Air NZ yesterday reiterated that it had not reached an agreement with Qantas, despite four months of talks and claims by National Party leader Bill English last week that the sale was a done deal.
The Government owns 82 per cent of the national carrier after spending $885 million to bail it out last year.
Air NZ managing director Ralph Norris said the fares were not a one-off special and represented a new brand of no-frills flights designedto fend off competition.
"If it was a short-term offering, it would rebound on us and leave the opportunity open for someone else."
Australian budget carrier Virgin Blue has also been eyeing New Zealand after filling a gap in the Australian domestic market when Ansett collapsed last year.
The president of the Travel Agents' Association, James Langton, said the competition was waiting to pounce on Air NZ and the low prices would not keep them away.
"Air New Zealand have done this because competition is biting at their heels. They want to keep their dominance in the marketplace, but Qantas have informed me this morning that they will not be undercut."
Air NZ budget subsidiary Freedom Air will stop domestic flights next month, leaving Air NZ and Qantas to compete.
Mr Langton said the new fares were not cheap, because Air NZ had increased prices by 30 per cent in the past two years and reduced them now because of competition.
His association has placed an open letter in today's Herald urging travellers to use travel agents and warning them against booking online.
The travel agents claim the advertised Air NZ fares are misleading and could be undercut by Qantas.
Their campaign is in protest at Air NZ's decision to axe a 4 per cent commission in favour of online booking.
Mr Langton said Air NZ wanted to stop travel agents providing the cheapest deal.
He said the no-frills deals announced did not include GST and service levies and a $10 booking fee if not booked online.
That would increase the advertised $120 return Auckland-to-Wellington fare to $175.
He said the website generated only 10 per cent of Air NZ's bookings and the cheap deals could not be booked overseas.
Mr Norris reacted by questioning whether the travel agents were acting in their customers' best interest.
.
Last edited by Wirraway; 1st Aug 2002 at 05:50.
