Pacific Blue Offers Kiwis Expensive Air Travel

Pacific Blue Offers New Zealanders More Expensive Air Travel

Air New Zealand says it will not be beaten on price and is surprised at how expensive Pacific Blue plans to make domestic air travel for its customers. Group General Manager Short Haul Airlines Norm Thompson says that based on information Pacific Blue released today it will be uncompetitive in most fare categories.

The following tables compare today's Pacific Blue fares and Air New Zealand's fares, which are effective September 1.  (Note:  Air New Zealand's year-round lead-in fares are now the same as Pacific Blue's and Air New Zealand's Flexi Saver and Fully Flexi fares are unchanged.)

AKL-WLG Year Round Lead-in fares / Flexi Saver / Fully Flexi    

Pacific Blue    $69     $329    $359   
Air NZ  $69     $184    $279   
Comparison      $0      -$145   -$80   

AKL-CHC Lead-in / Flexi Saver / Fully Flexi    

Pacific Blue    $79     $349    $389   
Air NZ  $79     $204    $332   
Comparison      $0      -$145   -$57   

CHC-WLG Lead-in / Flexi Saver / Fully Flexi 
   
Pacific Blue    $59     $259    $279   
Air NZ  $59     $154    $222   
Comparison      $0      -$105   -$57   

Mr Thompson says Air New Zealand is the market leader when it comes to everyday low cost travel in New Zealand.

"That position is not going to change.  Our commitment extends to the fact that this afternoon we have moved to continue to lead the market by lowering lead-in year-round fares on the main trunk routes.

"Furthermore, Air New Zealand has been at the forefront of ridiculously low fares through initiatives like grabaseat, which has seen fares as low as $1 on key routes like Auckland-Wellington and Christchurch-Dunedin over the past couple of months.  Kiwis have really embraced our drive to make air travel more affordable than ever, with the number of people we have flown around New Zealand increasing from 5.5 million in the 2002 financial year to 7.7 million in the 2007 financial year, an increase of 40%."

Mr Thompson says Air New Zealand's advantages over Pacific Blue go beyond price points.

"Our frequency on the main trunk routes on which we will compete is far superior due to the fact that we have 14 Boeing 737s in our domestic fleet and are about to take delivery of a further two, compared with Pacific Blue's two aircraft."

Weekday Frequency On Competing Routes:

Route, Air New Zealand flights Vs. Pacific Blue flights

Auckland-Christchurch  
18     
2      

Auckland-Wellington    
22     
5      

Christchurch-Wellington
16     
3      

Mr Thompson says Air New Zealand had been expecting a new competitor in the domestic market for the past couple of years.

"Impending competition has been a great incentive to ensure that Air New Zealand's domestic services have become as efficient and low cost as possible.  In effect, we have been operating as though a competitor is already in the market on the 26 destinations to which we operate to and from," Mr Thompson says.

Air New Zealand will announce changes to its domestic experience at its Annual Result on Tuesday.

Issued by Air New Zealand Public Affairs. Ph: 09 336 2761

ENDS

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