Qantas boosting transtasman capacity, piles more pressure on Air New Zealand from Auckland to New York

Qantas is putting more flights on the Tasman - which could lead to cheaper fares - and is turning the heat up on Air New Zealand with an extra flight from Auckland to New York.

The Australian airline will from late October add one million seats to its international network over 12 months compared to its current schedule.

In June it is launching its Auckland-New York route in direct competition to Air NZ’s flagship service. Both airlines will fly three times a week but the Australian airline will step that up from October 29 to four flights a week.

And on the Tasman it is starting a new daily route between Wellington and Brisbane with an Embraer E190 aircraft, increasing Christchurch-Sydney flights from 11 to 14 a week and adding another flight between Queenstown and Sydney (up to 14 during the peak summer season).

More capacity on routes generally leads to better deals for consumers who have faced sky-high high prices on the Tasman during the past 18 months, especially during peak holiday periods. Virgin Australia had an 17 per cent slice of the Tasman before the pandemic but is limited to flying into Queenstown, which means Qantas and Air NZ dominate the market.

Qantas chief executive Alan Joyce said: “We know our customers are looking for great value and this additional capacity will also put downward pressure on fares.”

The additional Qantas capacity will be made possible through a combination of more its own aircraft returning to service, new aircraft joining the fleet and an arrangement with oneworld partner Finnair to operate two Airbus A330 aircraft on two Qantas routes.

The network changes will see the Qantas international capacity grow to around 100 per cent of pre-Covid levels by March 2024, up from 44 per cent 12 months ago and 84 per cent today.

Most of the flying announced today will be operated by the 2400 pilots and cabin crew Qantas has recruited into the Group since borders reopened; a further 300 people will be needed by the end of the year.

During the past six months, Qantas has brought five international aircraft back into its fleet – some from long term storage and some that were on standby as operational spares while the industry stabilised.

A new Boeing 787 Dreamliner arrived in May and another two will be delivered next month. The latest Qantas A380 stored in the desert was reactivated in January and an additional A380 will return to service at the end of the year following maintenance and modifications to the cabin.

“The rebound in demand for international travel since borders reopened has been incredibly strong and this boost to our network will add hundreds of thousands of seats in time for the busy Australian summer holiday period,” said Joyce.

This announcement comes as Qantas prepares to resume San Francisco flights next week and launch its inaugural service to New York which originates in Sydney and flies via Auckland from June 14.

Flights will operate on Monday, Wednesday, Friday and Sunday.

Seasonal services to Rome and flights between Melbourne and Hong Kong will resume in June.

Joyce said improved on-time performance meant the airline can release some of the aircraft it has had in reserve.

“That reflects more parts of the aviation supply chain returning to normal and it’s a huge credit to the hard work of our people across the group.

“While airlines globally are working to restore capacity to meet demand, there is still a mismatch between supply and demand for international flying. But with more of our aircraft back in the air, new 787s joining our fleet and our contract with Finnair, we’ve got more seats for our customers and more opportunity for Qantas crew as we increase our own flying.”

The Finnair A330 aircraft will operate selected Qantas flights between Sydney and Singapore from late October and all flights between Sydney and Bangkok from late March 2024, freeing up Qantas aircraft and crew to boost flying elsewhere.

For the first two-and-a-half years of this agreement, flights will be operated by Finnair pilots and cabin crew, with customers continuing to receive Qantas’ inflight food and beverage service, amenities, inflight entertainment and baggage allowance.

From late 2025, two Finnair A330s will be dry leased, operating for up to three years with Qantas pilots and cabin crew, creating new jobs and further promotional opportunities within Qantas.

Other expanded services from October 29 include:

Melbourne - Los Angeles: Flights to increase from daily to nine per week, increasing capacity by around 60 per cent with more A380s flying.

Sydney – Tokyo: to increase from daily to double daily.

Melbourne – Tokyo: to increase from four per week to daily.

Brisbane – Tokyo: to increase from three per week to daily.

Sydney - Shanghai: Flights to commence for the first time in more than three years with daily A330.

Sydney - Hong Kong: Capacity boosted by more than 50 per cent over the peak Australian summer season, with daily flights to be operated by a mix of A380 and A330 aircraft.

Melbourne - Hong Kong: Flights to increase from four per week to daily.

Sydney - Singapore: Flights to increase from 14 to 15 per week from March 31, 2024.