Airfares upset mayors

Aug 31, 2007 Full story: The Press On-Line

“Air New Zealand has to take a hard look at its regional fares.”

High regional airfares are deterring travellers, say South Island mayors following Invercargill's challenge to Air New Zealand pricing. via The Press On-Line

Full Story
Simon Gunson Wellington

Raumati Beach, New Zealand

#1 Sep 8, 2007
The last mayoral comments were most telling. Of course Air New Zealand uses the provinces to subsidise it's main routes...

Look at this from a marketing point of view. Pacific Blue can't fill it's 180 seater Boeing 737-800 out of Invercargill, Palmerston North, Napier, or Nelson. Indeed most of these airports don't have strong enough runways for the weight of their big jet.

When Jetstar and Pacific Blue start up, where will they fly ?

The main routes to the bigger airports where the density of population sustains them is where.

Everywhere else Air New Zealand has a competitive advantage. It's called lack of competition, or monopoly for short.

Air NZ squeezes provincial New Zealand for higher airfares so they can offer cheap fares to rival Pacific Blue.

Sure you can fly Auckland to Christchurch for $39, but is Air NZ worried ?

Of course not because then they can rip you off at peak times for $300 to fly you back to Invercargill.

As one who has twice offered to create an airline to provide both domestic and international jet flights for Invercargill since 2005 and to do so with quite modest funding, I simply say this to the people of Southland. Your fate is in your own hands and someday maybe you will wake up to the fact that you only have to back the right horse and then you can obtain the services you need.

I recently repeated my offer to Mayor Shadbolt, Mayor Frana Cardno and to Venture Southland. I first made the offer last February, but got no response then either.

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