Freedom pushes the boundaries

Graeme Kennedy

Friday 23rd April 2004

Air New Zealand no-frills subsidiary Freedom Air is getting a fifth Boeing 737-300 to increase passenger capacity 25% and lift transtasman frequencies.

General manager Wayne Dodge said the latest addition to Freedom's fleet would enable the carrier to look at further expansion, including new Pacific routes after starting weekly Hamilton-Nadi services on April 29.

Direct Fiji flights will begin from Christchurch on May 13 and Palmerston North two days later.

Freedom's low-season Hamilton-Fiji fare will be $209 one-way, rising to $239 in the April-October peak period, compared with its parent's Pacific Express rates of $229 to $309 and $439 depending on required flexibility of travel and peaking at $589 for business class.

Mr Dodge said his carrier's fleet has grown with demand since beginning Tasman services with one 737 nine years ago.

"And we will continue to grow to meet increasing demand for our type of product," he said.

"New Zealanders have taken to the low-cost, no frills model which has been a real sea-change in the short-haul market.

"It's happening everywhere else  in Australia, Europe, the US and Asia  and New Zealand is no different.

" We are looking at longer-term plans for more expansion with growth in aircraft numbers and more destinations including the Pacific.

"Samoa, for example, provides a large community driving visiting friends and relatives (VFR) traffic which suits our model."

Mr Dodge said the fifth aircraft would arrive in June and initially operate Tasman services to cover for other 737s undergoing maintenance. Freedom would become a five- jet fleet in October when frequencies on Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin Tasman routes would be increased.

"Our operation is based on demand from the leisure traveller," Mr Dodge said.

"It is a product for people who pay for their own fares.

"We fly a lot of city pairs but our low frequency is an issue with business travellers although we expect to attract more SMEs with smaller travel budgets when we can offer them closer to daily services."

Mr Dodge said Freedom, like most low-cost carriers, outsourced many operations such as ground handling for economy and flexibility and to keep direct staff costs minimal.

The airline has no employees in Australia, for example, where all work is contracted out.

Freedom has around 40 employees for each aircraft compared with about 30 for European Ryanair and 50 for Virgin Blue.

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