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Air NZ cuts fares on key Tasman routes as demand wanes

Friday 5th September 2008

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Air New Zealand, the national carrier, will cut fares on routes across the Tasman Sea by an average 15% next month to stoke sales as demand wanes.

"In the current market of static growth, demand must be stimulated by having better product than your competitors, or better pricing," said Glen Sowry, manager of Tasman and Pacific services.

The new fares, effective Oct. 14, coincide with the introduction of airline's refitted A320 and Boeing 767 aircraft that fly the Tasman and Pacific Island routes. The planes have had a NZ$40 million spend on passenger services such as entertainment systems.

Sowry said the airline cut prices to stimulate demand on Tasman routes, where there is surplus capacity.

Air New Zealand stock fell 1.7% to NZ$1.14 and has declined 45% in the past 12 months.

By Jonathan Underhill

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