FlyerTalk Forums - View Single Post - Air NZ pulling 50% of WLG-BNE flights
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Old Feb 13, 2020, 11:37 am
  #7  
sbiddle
 
Join Date: Apr 2013
Location: New Zealand (most of the time)
Programs: Air NZ Elite *G, Honors Gold, IHG Platinum Elite
Posts: 6,111
One of the problems trying to cut capacity on TT route(s) is that it doesn't just affect a single destination as planes aren't just flying A-B-A.

Air NZ ideally need early morning flights from NZ and evening departures from AU getting back at midnight. Those flights are essential particularly on weekends for the huge weekend travel market between NZ and AU.

There have been many times over the years when the Sunday evening MEL-WLG has been pulled as a consequence of having to reduce capacity on other routes, with that aircraft normally doing WLG-MEL-ZQN-MEL-WLG in a day. If you cut ZQN/MEL capacity you then end up with a plane that simply does an early morning WLG-MEL-WLG.

So far this year we've seen aggressive TT pricing from NZ even in Jan before the impacts of coronavirus were widely felt. You have to wonder if these cutbacks are a combination of softening TT travel combined with poor forward sales.

Taxes are the major issue on all TT routes and it's just utterly crazy that it's around the $200ish figure now, and even more for those having to pay our new arrival and travel auth fees.

SQ learnt the hard way that $245 taxes WLG/CBR meant you could never grow the WLG/CBR market, and you have to wonder now whether softening demand for travel is going to see a major TT shake up.
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