Air New Zealand lifts prices, cuts services

[Tom Lohdan]

Air New Zealand has announced a range of price rises and service cuts in response to the continued high cost of fuel and changes in demand.

The airline says the industry faces sizeable challenges in what it describes as a 'rapidly changing economic environment.'

The price of domestic airfares will rise by an average four percent as will international airfares sold in New Zealand, Australia and the Pacific Islands.

Cuts to services involve the Japan to New Zealand route, and those across the Tasman.

Link- No Extra text (http://www.radioaustralia.net.au/news/stories/200806/s2267719.htm?tab=latest)

[Pieter S]

Air New Zealand fare and capacity changes
Full text of media announcement from the company is here ... http://www.airnewzealand.com.au/aboutus/mediacentre/pressreleases/default.htm

[David Ramsay]

Quote from the media release

As a result of continued strong passenger demand, from October several Auckland - San Francisco services per week will be up-gauged from a 313 seat 777-200 to a 379 seat 747-400.

That's great and is probably a response to the reduced capacity on the AKL-LAX sector due to NZ1/NZ2 changing to the 777.

It is contrary to their stated objective of saving fuel, however I guess there is an overall saving when you take NZ1/NZ2 into account as they go to/from LHR.

On the other hand, it may just be an aircraft availability thing.