An NZPA report says that Air New Zealand has announced it would cut domestic air fares by up to 30 per cent to stimulate demand.
The changes, effective for travel from February 23, would reduce lead-in Smart Saver fares by between 9 per cent and 27 per cent on around 40 domestic routes, and cut top end fares by 20 per cent to 30 per cent on some regional routes popular with business customers, Air NZ chief executive Rob Fyfe said.
Domestic main trunk fares would fall by 15 per cent at the top end.
The price cuts were part of the company’s ongoing review of its domestic services.
The airline had increased seat capacity on regional routes by nearly 50 per cent in the last 2½ years, but was struggling to fill the extra seats.
High fuel prices meant that price cuts were not across the board, but there would be no price increases, Mr Fyfe said.
Fuel costs had a bigger impact on the international flights, making up just 20 to 25 per cent of the cost of a flight between Auckland and Wellington.
A Report by The Mole from NZPA
