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Long-distance air travellers hoping to save a few dollars by flying with Qantas and its reduced fuel surcharges will be disappointed - the lower prices are only for customers based in Australia.
The airline told the Herald yesterday that the $5 discount, prompted by dropping world oil prices,
would only be available to New Zealanders on domestic routes, from next Tuesday.
Qantas spokesman Lloyd Quartermaine said only Australian customers would enjoy the $5 reduction on international flights.
On Tuesday night, Qantas said it did not matter where the buyer was based, everyone would get the $5 reduction.
But yesterday a spokesman told the Herald he had "clarified" the position and New Zealanders would not benefit on international flights, even if they called Australia or went online to book tickets.
"That does not apply to international flights [booked in New Zealand] at this stage, although it is under review."
Air New Zealand has been criticised for failing to follow its trans-Tasman competitor.
"Our fuel bill for the 2007 financial year is expected to be around $1.1 billion, compared with around $480 million three years ago," the company said.
An economics expert said yesterday that Air New Zealand had been "hoist by its own petard" in the way it surcharged for fuel.
Professor Tim Hazeldine, University of Auckland professor of economics, said the national carrier chose to separate the costs of fuel from the ticket price so it could blame external factors for rising costs.
But it was now in the firing line because it did not want to reduce surcharges, despite the falling oil price.
Professor Hazeldine said if the company had stuck with inclusive pricing it would not be facing the current backlash.
The majority of people who contacted the Herald website on the subject yesterday criticised Air New Zealand's refusal to drop prices.
A barrel of crude is down to below US$52. But Air New Zealand said it had forward-purchased its fuel at higher prices than other airlines.
Professor Hazeldine said fuel purchasing involved forecasting and Air New Zealand "seems to have gambled and lost".
However, he said that did not mean the airline could not drop its price.
"They are quite free to charge whatever price they like," he said. "There's nothing to stop them other than the consumer reaction and competitor pricing. They've chosen to separate fuel costs and now the public relations does not look so good."
David Russell from the Consumers Institute said publicity played a part in the Qantas move, which was "marketing hype".
However, he said the publicity could prove damaging to Air New Zealand if it continued to sit on its hands.
