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Home / Business / Companies / Airlines

Air NZ says new baggage system to cut costs

7 Nov, 2006 02:06 AM2 mins to read

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KEY POINTS:

Air New Zealand says a new electronic baggage check-in system, which would collect $5 million domestically a year, is aimed at cutting costs and does not represent a change to policy.

The system, being trialled in Auckland, automatically calculates the weight of baggage being checked through and any
applicable charges, Air NZ executive Norm Thompson said today.

Domestic travellers are charged $5 per kilogram of baggage over 20kg, and can carry on a further 7kg free. Charges are higher for international travellers.

"This new X-bag system is designed to ensure that we more closely control baggage weight, and fuel use. Every extra kilo carried on an aircraft means extra fuel burned," Mr Thompson said.

Air NZ currently carries about a million kilograms of excess baggage domestically each year, costing $2200 per kg in fuel. Fuel makes up 35 per cent of the airline's total costs.

"It's important to remember that there is no change to our current policy. This is categorically not a revenue-gathering exercise," he said.

The system is due to be rolled out to Wellington and Christchurch within the next month.

Check-in staff were being briefed on how to deal with passengers angered by the new system, The Dominion Post reported today.

A source told the newspaper Air NZ had a 3kg "buffer" on top of the 20kg allowance and staff could currently decide whether to let some excess baggage go free, for example if it would cause delays.

Air NZ is trying to cut costs and improve efficiency across the business, including a planned transfer of nearly 1700 jobs to a specialist ground handling company which would do the work for $20m a year less.

- NZPA

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