Air New Zealand has announced reductions in air fares to Sydney and Melbourne and the number of people travelling on that route is expected to skyrocket as a result.
Spokesman Bruce Parton says the Tasman route is one of the most competitive areas of business for the airline,and it needs to make sure the $50 to $60 million it has invested in new aircraft is paid back through full planes. Mr Parton says the way to do that is to slash the cost of travel across the Tasman by between 33 and 50 per cent.
From October, Air New Zealand's one-way fare to Sydney will be $249, and to Melbourne it will be $199. President of the Travel Agents' Association Peter Barlow says Air New Zealand hopes to compensate for a reduction in long haul traffic by slashing fares in an attempt to fill short haul flights.
He says the increase in fuel prices means Air New Zealand needs to fill their planes up, and this is an effective way of doing that. Mr Barlow says in a fuel crisis, long haul flights get hit hardest. He says with high fuel prices and half-full planes, planes still need to be fully fuelled, so slashing fares is one way to ensure more people travel.
Air New Zealand already has an edge over other airlines, as it is the only airline offering individual in-flight entertainment systems for flights across the Tasman.
