Air NZ fares are multiplied by six because of the lock: Kiwis complain about the price increase

Air New Zealand’s fares skyrocketed after the lockdown when it was the only airline operating – the average cost of return flights from Auckland to Christchurch increased six-fold, new data shows.

Three complaints about price increases have been filed with the Commerce Commission and Cabinet Minister Shane Jones says the conflicting airline has an obligation to be more transparent because taxpayers gave it a “lifeline” of $ 900 million.

But Air New Zealand says its price increases were because physical distance requirements meant it could only sell about half the seats on a plane.

Data from the Kayak flight comparison site shows that the average price for a return flight from Auckland to Wellington peaked at around $ 400 in late May, when the country was at alert level 2.

In April, return flights from Auckland to Christchurch increased to six times their February price.

At the time, Air NZ was the only airline flying because its competitor Jetstar suspended all flights from mid-March to July because the lockdown restricted travel and Alert Level 2 imposed social distancing regulations.

Jetstar canceled all of its flights again when Auckland returned to alert level 3 last month and the rest of the country to alert level 2. The low-cost carrier said a return to social distancing meant its New Zealand operation was ” non-viable”.

An Air New Zealand spokeswoman said keeping passengers at a distance meant they could only sell just under 50 percent of the seats in a turboprop aircraft and 65 percent in an A320.

“Once the physical distance requirements are removed, we can once again offer our lowest rate advantage, but in the meantime this is not possible.

“However, it is also worth noting that we have capped our rates, which means that our higher rates are also not currently for sale.”

The Commerce Commission has received three complaints about Air NZ that include the words “price increase”.

Jones, New Zealand’s first MP and Minister for Regional Economic Development, said it was his view that New Zealanders should be entitled to more transparency from the airline about how it justified price increases.

Especially since “he came to Wellington on all fours to ask for help,” Jones said, referring to the $ 900 million loan the government offered to the struggling airline in March.

In its annual results report last week, Air NZ said it expected to use the loan “in the next few days.”

“It’s always been my point of view that the bailout option represents obligations,” Jones said.

“Why should the Kiwis bail out Air New Zealand while Air New Zealand does not appear to be able to provide competitive and justifiable fares to keep regional businesses, regional economies and regional communities strong?”

“It’s just not sustainable to think that they are going to recover their historic operating model through a tear.”

Jones has long accused Air NZ of price hikes on its regional routes where it is a monopoly operator, calling the recent price hikes between major cities a “toll operation.”

“Any future Crown infusions in New Zealand must clearly be linked to a higher, more transparent and fairer level of New Zealand travel costs to keep kiwis connected. That is the least the public should expect.” .

Consumer CEO Jon Duffy said anyone who hadn’t booked but was upset about the prices couldn’t do much about it.

However, there could be a case under the Fair Trade Act if someone canceled their flight and the airline claimed it was due to Covid-19, Duffy said.

If they believed that the real reason was because the airline wanted to make them rebook a more expensive flight, then it would be misleading.