Air New Zealand raises domestic, international fares again

Air New Zealand, the national flag carrier of New Zealand and the country’s largest carrier, has announced that it will increase fares – once again – on domestic and international flights by 4% on an average. The airline, 76% owned by the government of New Zealand, will also do away with some services in the wake of unusually high costs of jet fuel.

Air New Zealand had indicated earlier that further increases in ticket prices were likely because of high oil prices.

The airline would eliminate a twice-weekly Auckland-Hong Kong service, operated seasonally in December and January, and cut capacity on a number of routes between New Zealand and Australia during the low-demand months of August to November.

Also, it would reduce services between Japan and New Zealand by one flight a week between September and November.

Flights to Sydney from Dunedin, Wellington and Hamilton will be reduced from August.

On the contrary, a statement from Air New Zealand said, it would raise seat capacity on its services from Auckland to San Francisco because of strong passenger demand.

Fares on domestic flights and services to Australia and the Pacific Islands will go up from June 16, 2008, and fares on long- haul flights will increase from June 20, 2008.

This is the third increase in fares that Air New Zealand is carrying out in 2008.
Air New Zealand, based in Auckland, New Zealand, has its focus is on Australasia and the South Pacific, with services to Europe, North America and Asia. It is a member of Star Alliance.

Rob Fyfe, chief executive officer of Air New Zealand, said in a statement: “Relative to other airlines, Air New Zealand is well-positioned with superior product, a network primed for growth and a relatively young fleet. However, we are not immune to changes in demand and skyrocketing fuel costs. It is critical that we adapt our business in response.”

In the meantime, Air New Zealand has announced that its will test biodiesel made from jatropha nuts.

The jatropha plant, which can survive in deserts, is widely considered as an alternative to fossil fuel.

The newspaper Sydney Morning Herald quoted Rob Fyfe as saying that “Air New Zealand is absolutely committed to being at the forefront of testing environmentally sustainable fuels.”

The test will be conducted later in 2008, using a Boeing 747 aircraft with engines from Rolls Royce.

According to Sydney Morning Herald, “Boeing Company has been at the forefront of an industry push toward alternative fuels since 2007, following soaring rises in the price of ordinary fossil jet fuel.”