Cheaper regional flights come with a catch

A scheme by Air New Zealand could save customers up to 30 per cent off regional fares but customers will have to pay $800 upfront to qualify.

The new Starfish Card will see automatic savings of 15-30 per cent off all regional airfares, including tickets bought online through grabaseat.

The card, which is valid for one year from the date of purchase, costs $200 for a 15 per cent discount and $800 for a 30 per cent discount.

The discount is for all regional flights to and from regional destinations and all regional flights to a city, or from a city back to a regional destination.

Consumer NZ has warned consumers to be cautious when considering the deal and to calculate how much they travel and whether they would benefit from the discounts before the expiry date.

Air New Zealand group general manager Australasia Bruce Parton said the company was introducing the cards to stimulate growth and to push the notoriously high prices of regional travel down for frequent flyers.

Parton said customers told him they wanted cheaper flights when the company visited 20 towns and cities looking for feedback on regional fares.

Parton said Air New Zealand had a customer who spent $60,000 a year on regional flights - with the 30 per cent discount, he would save about $18,000.

Air New Zealand will make up the money it loses to discounts through additional fares it expects the cards will generate. Forsyth Barr analyst Rob Mercer said only time would tell whether the cards would be successful and whether consumers would get value for money.

He said it was another initiative by Air New Zealand to fill seats in planes and encourage people to travel.

"The biggest way to stimulate demand is price. Air New Zealand is trying lots of different ways to provide ongoing discounts for customers," Mercer said.

The discounts are available if a traveller departs or arrives at the following places; Blenheim, Kerikeri, Palmerston North, Wanaka, Gisborne, Masterton, Rotorua, Wanganui, Hamilton, Napier, Taupo, Whakatane, Hokitika, Nelson, Tauranga, Whangarei, Invercargill, New Plymouth, Timaru, Westport and Kaitaia.

WEEKEND GETAWAY

Cheapest available one-way flights from Auckland between 5pm and 6pm on August 27

TO
* Tauranga: $141
* Wellington: $171
* Christchurch: $171
* Napier: $181
* Nelson: $181
* New Plymouth: $221
* Gisborne: $319

Source: airnewzealand.co.nz