30 Nov 2011

Air NZ hopes low fares will boost tourism

7:06 am on 30 November 2011

Air New Zealand hopes cheaper fares for passengers travelling without bags will stimulate domestic leisure travel.

Air New Zealand announced on Tuesday that it is cutting some fares for domestic passengers travelling without bags, hoping to mirror the success a similar fare structure has had on trans-Tasman patronage.

The airline introduced a flexible seat-to-suit fare structure, which includes a seat-only option, on its trans-Tasman flights fourteen months ago.

Now it is cutting prices of its lowest domestic fares by $10 for passengers who only have carry-on luggage.

Australasia general manager Bruce Parton expects cheaper fares to stimulate domestic leisure travel in New Zealand.

Mr Parton says the airline will also start offering even cheaper standby fares on off peak flights until the end of June next year, but only if there are spare seats available.

Mr Parton says very few airlines do standby fares anymore, but Air New Zealand thinks they will give leisure travellers another reason to fly.

"Anything we can do to help the regions in New Zealand to have more tourists and more New Zealanders out there travelling is really good for the economy," he says.