Air NZ to introduce new services

Air New Zealand is to introduce direct flights from Auckland to Dunedin as part of a range of services aimed at heading off competition from other domestic airlines.

Air New Zealand's chief Gary Toomey announced the changes today, saying the airline "can't afford to relax for a second in today's wide open aviation market."

In-flight videos, upgrades to lounges and e-check-in will also be introduced, as well as WAP mobile customer information services.

In addition to the domestic initiatives, Air New Zealand is bringing in another Boeing 767 aircraft to expand connections between New Zealand and Japan later this year.

Increased services will also be offered to Hong Kong and Taipei from Auckland.