Editorial: Competition happy news for customers

I dare say, as someone pondered the price of their return flight from Hawke's Bay to Auckland, they may have mumbled "I'm not surprised" when they heard how Air New Zealand had delivered a record annual profit of $327 million for the year to June 30.

That's quite a return.

That's around $6,280,000 a week ... that's closing in seriously on $1 million a day.

The company line was a fairly predictable one as they noted strong passenger demand, lower fuel prices and general cost control (cutting).

It was the strong passenger demand that got me, and others I dare say.

Because in terms of major players, Air NZ has been the only horse in the domestic transport stable.

Need to get to one of the main centres for some urgent reason next Wednesday?

Oh you'll get a seat ... but it won't be a bargain.

Oh yes, some lead-in flights have dropped in price but they're not "gosh wow" material just yet, but there may well come a time when they could be.

But it won't be due to Air NZ saying thanks to its customers for helping make some serious dosh, and offering some cuts of fare prices as a form of gratitude.

Oh no, I think it will be because there might be a new kid in town.

Jetstar, not massive profits gleaned through effectively monopolistic services through places like here, will sway the deal.

Competition does that.

All of a sudden a rival is offering cheaper seats and that is challenging, to the ledger book.

Air NZ is promising fare cuts and had made some already as the Jetstar turbo-props set their sights on a couple of provincial targets to take on the koru.

In anticipation, even before Hawke's Bay has entered the competitive mix, Air NZ has already carved some dollars off fares out of here. Great what a threat to a healthy profit line can do.

But what if (and hopefully I'm wrong) Hawke's Bay don't get tagged to the Jetstar trail?

Will those cheaper Bay fares remain, or mysteriously edge up again to ensure the national carrier has another reason to celebrate in 2016?