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Home / Business

Air NZ puts up Koru Club charges

9 Apr, 2003 05:37 AM2 mins to read

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Air New Zealand today said it was hiking businessclass club membership fees by between 32 and 62 per cent.

Koru Club individual memberships rise by $120, or 32 per cent, to $495 annually and corporate memberships by 48 per cent, or $145 (from $300 to $445).

The company said it was the
first price increase in four years and would help fund "ambitious" plans for a $20 million upgrade of key Koru lounges in New Zealand and overseas.

The new fees will apply immediately. Existing members will benefit from a 12 month period of grace if they renew subscriptions before July 1.

The lounge upgrade programme, the most comprehensive undertaken for many years, will include the major refurbishment and expansion of the Los Angeles and Christchurch lounges. Other projects are in the pipeline.

Air New Zealand chief operating officer Andrew Miller said the Koru Club was a user-pays facility which had been significantly subsidised since its inception 16 years ago.

"With the advent of lower fares through Express Class, we cannot sustain this next phase of lounge refurbishment without seeking additional funding from those who benefit from these facilities."

Membership was growing with one third of members signed in the last two yeas.

Air New Zealand has scrapped partner and life memberships although existing members can continue to renew subscriptions.

Partners will have to choose between individual full membership or buying an annual guest card.

Partner memberships for existing members will increase by 62 per cent, $125 per year, from $200-$325.

Air New Zealand would not say how many Koru Club members it has except to say there are "tens of thousands".

- NZPA

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