Chain's $499 charter flight deals to Fiji spark price war

By CHRIS DANIELS aviation writer

A new air charter service to Fiji has been launched by the Flight Centre, sparking a Pacific Island aviation price war with Air New Zealand.

The travel agency chain, New Zealand's biggest, has done a deal with aviation company Airwork to run flights, beginning in March.

Prices for a seven-night holiday, with return airfares, are being quoted at $499 for four-person share.

The New Zealand-Fiji route has until now been a cosy duopoly, with only Air NZ and Air Pacific offering flights. Air Pacific is jointly owned by the Fijian Government and Air New Zealand's supposed rival Qantas.

Air New Zealand's website quotes $742 for economy return airfares to Fiji in mid-March, with no accommodation. It said yesterday it was going to slash its prices for travel starting "mid-year", when it began its "express" style service on Pacific routes. It would not say what the fares would cost.

New low-cost airline Pacific Blue is also thought to be keen on flying to Fiji and the Pacific Islands.

In a press release issued just hours after the Flight Centre detailed its long-expected charter service, Air New Zealand chief executive Ralph Norris said the airline was "committed to ensuring visitors to the Pacific Islands and residents of the idyllic nations have the opportunity to travel cheaper than ever before".

Earlier this week, Air New Zealand's budget brand, Freedom, said it too would start flying to Fiji from Hamilton and Palmerston North, but would not say when these flights would start, or what they would cost.

The Flight Centre flights will leave from Auckland, Hamilton, Wellington and Christchurch, using a Boeing 737-300.

Flight Centre New Zealand managing director Graeme Moore said it was no secret the company had difficulty getting enough seats for its customers on some popular routes.

"We believe the introduction of this charter service will further add to the appeal of Fiji as a holiday destination and will significantly grow the market."

A senior travel industry source told the Weekend Herald that the cheap prices were "totally sustainable", as Air New Zealand and Air Pacific had charged far too much for flights to Fiji.

"It's the best thing that's ever happened. It'll finally give Air New Zealand and Air Pacific a run for their money."

Fiji airfares and accommodation had been overpriced for a long time. When compared with the Gold Coast, Sunshine Coast and Far North Queensland, it had not been good value.

* Flights will leave Auckland for Fiji on Fridays and Sundays, Hamilton and Christchurch on Saturdays and Wellington on Sundays. Packages are initially for six nights out of Christchurch, seven nights out of Auckland, Hamilton and Wellington, with the option of an eight-night package out of Auckland. The accommodation deals are for a number of Fijian hotels and resorts. Tickets will go on sale next week.