Consumer NZ Shows Need For Airline Regulation

The NZ Airports Association has welcomed analysis from Consumer NZ released today showing the massive airfare increases impacting consumers around the country.

Consumer NZ compared fares for 11 Air New Zealand flights in 2023 and 2024 with fares for equivalent flights in 2019 to 2021. It found price increases between 34% and 297%. That equates to consumers paying hundreds of dollars more for the same ticket than they did a few years ago.

“Consumer NZ’s work is helping to pull back the veil on domestic airfares, showing that it is airline pricing and a lack of competition that is costing Kiwis,” NZ Airports Chief Executive Billie Moore says.

“We applaud Consumer NZ for its work. This is another wake up call that we need airfare monitoring in New Zealand. Transparent data can empower consumers and provide information to foster the market investment and new competition that is so sorely needed. The Government has the power to implement this monitoring now.”

With Air New Zealand holding 86% of the domestic market, domestic aviation is more concentrated than any other sector in the competition spotlight, like banks and supermarkets.

“It’s time for a serious conversation about how to get more capacity and competition into the New Zealand market through new entrants and supporting smaller regional airlines. This is the key to getting airfares down. It’s been great to see Jetstar expanding its operations recently and we hope this will have some impact.”

© Scoop Media