8-Aug-2013 12:50 PM

Air New Zealand: trans-Tasman 'performing in-line with economic growth'; pax charge affecting demand

Air New Zealand group GM airports John Whittaker, speaking at the CAPA Australia Pacific Aviation Summit, said (08-Aug-2013) the trans-Tasman market is "performing in-line with economic growth", but said the passenger facilitation charge on average makes up 20-25% of fares which is a "huge proportion compared to a long-haul journey and definitely affects demand." On the Qantas-Emirates and Virgin Australia-Air New Zealand duopoly, Mr Whittaker said the trans-Tasman market has never sustained more than two competitors, and that while there are consumer benefits to the alliances, there is a concern that they may prevent growth in smaller markets. On pricing, Mr Whittaker said there is "no doubt" a direct correlation between pricing and passenger demand in the trans-Tasman market.