Air New Zealand cuts Tasman fares

Media release
5 September 2008

Air New Zealand cuts Tasman fares

Air New Zealand is further reducing long-term lead-in fares to Australia, by an average of 15%, as the first of its refitted A320 aircraft begin flying the Tasman.

Customers in Auckland, Hamilton, Wellington, Christchurch, Queenstown and Dunedin stand to benefit from the cuts in fares to Sydney, Melbourne, Brisbane and the Gold Coast.

Today’s fare reductions are effective for travel from 14 October, and build on significant price cuts announced last month on Air New Zealand’s popular services between Auckland-Sydney and Auckland-Melbourne.

Air New Zealand General Manager Tasman Pacific Airline Glen Sowry says the airline is dropping prices to further stimulate demand on the highly competitive Tasman market, which has an over supply of capacity.

“In the current market of static growth, demand must be stimulated by having better product than your competitors, or better pricing,” Mr Sowry says.

“The Tasman is our home market and we will continue to ensure that we remain market leader by continuing to offer the best combination of price, product and frequency.”

Mr Sowry says Air New Zealand is investing almost $60 million in fitting its fleet of 13 A320 and five Boeing 767 aircraft that fly the Tasman and Pacific Island routes with new personal on-demand in-flight entertainment, which customers are able to watch gate-to-gate.

The 767 and A320 fleets are also being reconfigured to create a new “space+" zone at the front of the economy cabin that will provide greater legroom for regular Tasman and Pacific Island travellers.

The first of the refitted 767s and A320s are 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 says.

Air New Zealand is determined to offer the best value deals on the Tasman, he says.

“All meals, drinks, in-flight entertainment and baggage allowance are included in our fare pricing, so you know exactly what you’re getting when you step on board. There’s no need to fork out extra cash, and you don’t need to give up anything to get lower fares on the Tasman when you choose

Air New Zealand.”

Examples of today’s fare reductions (ex New Zealand):

Sector Current long-term lead in fare (one way internet fare, per person, fully inclusive) New price – long-term lead in fare (one way internet fare, per person, fully inclusive)

Christchurch-Melbourne $271 $229
Auckland-Brisbane $372 $269
Wellington-Sydney $358 $299

ENDS

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