11.45am
Air New Zealand has cut some domestic ticket prices by up to 50 per cent with its new no-frills domestic fares announced today.
The single-class domestic Express service, to be launched in October, will replace full meals and drink selections with a snack, tea, coffee and water. Bookings can be made
from today.
Flights on main trunk routes between Auckland, Wellington and Christchurch will drop by 28 per cent, and by an average of 20 per cent over the whole domestic network.
Air New Zealand Express will replace the current business and economy class flights in an effort to boost Air NZ's sales and restore profitability.
There are three categories of new fares, Smart Savers - which is the cheapest - Flexi Savers, and Fully Flexi.
A one-way Express service flight between Auckland and Wellington will cost as little as $59. Previously, the lowest price for a return flight between the two cities was $199. Under the cheapest new fares, the return trip will cost 40 per cent less.
People who pay the $59 fare, the so-called 'Smart Saver' fare, will not earn air points.
Air NZ managing director Ralph Norris said in Auckland this morning that the new fares will make flying the most realistically priced transport option within New Zealand.
"Today's announcement on fares represents the most significant fare reduction programme yet undertaken by Air New Zealand across its domestic services," he said.
"Our promise is that twice as many fares will be sold at the lowest prices -- our objective is to encourage people to fly."
Air NZ, which reported a loss of $1.43 billion last year after the collapse of Ansett, is encouraging customers to book flights through the internet.
The airline has restructured its domestic and short-haul services in a bid to head off competition from Qantas, which recently announced it would increase trans-Tasman flights.
Mr Norris said Air NZ will retain its air points reward programme, although the airline will announce changes to its system in a few weeks.
As part of the Express service, the aircraft will be fitted with 136 seats compared with the 122 at present with the removal of business class seats.
Air NZ has also begun upgrading its Auckland Koru Club lounge.
In the three categories of fares, the lowest fares will only be available on the internet.
- NZPA
