Air New Zealand introduces new domestic fare structure in response to price gouging accusations

Air New Zealand announced (11-Nov-2014) plans to introduce a 'regional gotta go' fare from 01-Feb-2015 to provide more affordable fare options for regional passengers and introduced a new compassionate domestic fare structure from 20-Nov-2014. While Air New Zealand's average regional fare has not increased in five years, the airline said it is responding to customer feedback about high last minute fares on regional services: "Our regional gotta go fare is a confirmed seat at the time of purchase. It won't be available on all flights, depending on demand, but the likelihood of securing a seat is generally good especially if customers have the flexibility to fly at off peak times." The fare will be available at a fixed price of NZD169 (USD130.70) for a single one-way sector or NZD249 (USD192.60) for two or more one-way sectors. The compassionate fare structure will offer domestic sectors at a fixed price of NZD169 for a single one-way sector or NZD249 for two or more one-way sectors, available for booking up to seven days in advance for close family bereavement or up to 48 hours in advance of travel for a critical medical situation. As previously reported by CAPA, Air New Zealand was accused of price gouging regional customers leading to calls from New Zealand Prime Minister John Key to reduce fares as much as possible. Air New Zealand said fares have fallen by about 1% since 2009 despite rising costs. [more - original PR]