Mwenenzi
Apr 29, 03, 3:37 pm
From Dominion Post, Wellington
http://www.stuff.co.nz/stuff/0,2106,2437842a13,00.html
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Air NZ to lift overseas fares
WEDNESDAY, 30 APRIL 2003
By ROELAND VAN DEN BERGH
Air New Zealand will increase its international fares by 3 per cent next week despite falling passenger numbers and cuts to schedules.
Unlike fare reductions, Air New Zealand has not publicised the increase, only telling travel agents "some time ago" of the move.
An airline spokeswoman said the increase was the result of a meeting of International Air Transport Association airlines, which agreed to increase prices 3 per cent.
"This is an industry-wide decision (that) a number of IATA airlines agreed at a meeting last month," she said. The decision was based on "a very volatile market, so there is a lot of uncertainty".
The move adds about $70 to a typical return airfare to London – though this will vary depending on time of travel and availability of early booking discounts.
The increases take effect from May 6 on most routes. They come at a time of falling passenger numbers and as Air New Zealand is cutting services to Japan and Hong Kong because of the severe acute respiratory syndrome virus.
It is also trying to convince the Commerce Commission that it needs an alliance with Qantas that would be good for consumers.
The airlines have asked the commission for an extension of "some weeks" to prepare a submission in response to a strongly worded rejection of the alliance, which the watchdog says will be anti-competitive and cost consumers up to $402 million a year after three years. Air New Zealand managing director Ralph Norris said yesterday the airline was "a long way off" from giving up on the proposed alliance.
He would not be drawn on whether a rejigged proposal would include an undertaking to give up Air New Zealand's profitable domestic budget subsidiary, Freedom Air.
Qantas said yesterday it would make a submission on May 9 in response to the draft determination by the Australian Competition and Consumer Commission, which also strongly rejected the alliance.
However, Qantas indicated that the submission would only "highlight a range of issues" already included in the first alliance application. It appeared to be keeping its powder dry for an appeal to the Australian Competition Tribunal.
The submission would focus on the problems and changes facing the aviation industry, anticipated significant competition from Virgin Blue and the benefits the alliance would bring to consumers and the airlines.
Chief executive Geoff Dixon said Qantas believed it had made a strong case that the alliance would benefit consumers, tourism and the economy of both Australian and New Zealand.
There was a "pressing need" for Qantas and Air New Zealand to restructure and consolidate to ensure a viable and internationally competitive airline industry in Australasia.
Commentators say another factor is how much pressure the Australian and New Zealand governments – which both support the deal – are prepared to exert on their regulators. </font>
http://www.stuff.co.nz/stuff/0,2106,2437842a13,00.html
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Air NZ to lift overseas fares
WEDNESDAY, 30 APRIL 2003
By ROELAND VAN DEN BERGH
Air New Zealand will increase its international fares by 3 per cent next week despite falling passenger numbers and cuts to schedules.
Unlike fare reductions, Air New Zealand has not publicised the increase, only telling travel agents "some time ago" of the move.
An airline spokeswoman said the increase was the result of a meeting of International Air Transport Association airlines, which agreed to increase prices 3 per cent.
"This is an industry-wide decision (that) a number of IATA airlines agreed at a meeting last month," she said. The decision was based on "a very volatile market, so there is a lot of uncertainty".
The move adds about $70 to a typical return airfare to London – though this will vary depending on time of travel and availability of early booking discounts.
The increases take effect from May 6 on most routes. They come at a time of falling passenger numbers and as Air New Zealand is cutting services to Japan and Hong Kong because of the severe acute respiratory syndrome virus.
It is also trying to convince the Commerce Commission that it needs an alliance with Qantas that would be good for consumers.
The airlines have asked the commission for an extension of "some weeks" to prepare a submission in response to a strongly worded rejection of the alliance, which the watchdog says will be anti-competitive and cost consumers up to $402 million a year after three years. Air New Zealand managing director Ralph Norris said yesterday the airline was "a long way off" from giving up on the proposed alliance.
He would not be drawn on whether a rejigged proposal would include an undertaking to give up Air New Zealand's profitable domestic budget subsidiary, Freedom Air.
Qantas said yesterday it would make a submission on May 9 in response to the draft determination by the Australian Competition and Consumer Commission, which also strongly rejected the alliance.
However, Qantas indicated that the submission would only "highlight a range of issues" already included in the first alliance application. It appeared to be keeping its powder dry for an appeal to the Australian Competition Tribunal.
The submission would focus on the problems and changes facing the aviation industry, anticipated significant competition from Virgin Blue and the benefits the alliance would bring to consumers and the airlines.
Chief executive Geoff Dixon said Qantas believed it had made a strong case that the alliance would benefit consumers, tourism and the economy of both Australian and New Zealand.
There was a "pressing need" for Qantas and Air New Zealand to restructure and consolidate to ensure a viable and internationally competitive airline industry in Australasia.
Commentators say another factor is how much pressure the Australian and New Zealand governments – which both support the deal – are prepared to exert on their regulators. </font>