AAaLot
Nov 9, 05, 12:09 am
As an American on a long holiday in NZ I have just purchased my first tickets on Air New Zealand.
I thought that in comparison to distances traveled (CHC-IVC) that the tickets were expensive in comparison to a similar route in the USA.
Is there legal or other reasons why Air New Zealand lacks competition within New Zealand?
Is Air New Zealand 100% public or private?
kiwiandrew
Nov 9, 05, 12:58 am
As an American on a long holiday in NZ I have just purchased my first tickets on Air New Zealand.
I thought that in comparison to distances traveled (CHC-IVC) that the tickets were expensive in comparison to a similar route in the USA.
there is not sufficient demand on this route , if there was , QF , the other airline would fly it - how far out from date of travel did you book it ?
Is there legal or other reasons why Air New Zealand lacks competition within New Zealand?
no , in fact , unlike your country we even allow a 100% foreign owned airline , QF , fly domestically because we want competition - but they cannot be forced to fly on all routes if they dont wish to .
Is Air New Zealand 100% public or private?
after they nearly went belly-up 4 years ago the taxpayer bailed them out , as a consequence the NZ Govt owns around 80% currently - partly their own fault as the idiot Minister of Finance turned down a bid from SQ to raise their stake in NZ to 49% back in 2001
ntddevsys
Nov 9, 05, 1:59 am
Keep in mind that when NZ/QF were looking at a tie-up there was plenty of pressure on QF to not increase it’s services within New Zealand (a substantial amount of NZ's profit is made on N.Z. Services). In the past there have also been various political pressures, some will know what I mean.
N.Z. also have very high landing charges and keep in mind our cost of living is far above that of the States (I.E. US$50,000) doesn't buy alot...