NZ aviation market price sensitive – Cullen

Published: Fri 20 Dec 2002 06:59 PM
Express service success shows NZ aviation market price sensitive – Cullen
“The better-than-anticipated success of Air New Zealand’s new low cost structure demonstrates how price sensitive the New Zealand market is, and the advantages to Air New Zealand of keeping prices down,” Finance Minister Michael Cullen said today.
Dr Cullen was commenting on Air New Zealand’s announcement to the stock exchange that its pre-tax profit expectations for the current financial year were now $30 million higher than earlier indicated.
“The additional earnings reflect higher than expected demand as New Zealanders have flocked to take advantage of the airline’s cheaper flights. Clearly much of that travel is discretionary, and would not happen if fares rose.
“This creates a strong commercial imperative on Air New Zealand to resist fare increases and should reassure those people who are concerned that the proposed strategic alliance between Air New Zealand and Qantas will lead to price rises,” Dr Cullen said.

Next in New Zealand politics

A New National For New Zealand
By: New Zealand National Party
Cancer Society Hopes Final Pharmac Report Is Stronger
By: Cancer Society
New Zealand Response To Assist Peace And Stability In Solomon Islands
By: New Zealand Government
Child Poverty Monitor 2021 Highlights Persistent Inequities In Rates Of Child Poverty
By: Child Poverty Action Group
Bridges Appointed Finance & Infrastructure Spokesperson
By: New Zealand National Party
Waitangi Week
By: Waitangi National Trust
View as: DESKTOP | MOBILE © Scoop Media