6 Oct 2008

Air NZ cuts Hamilton-Australia routes

10:03 pm on 6 October 2008

Air New Zealand has axed some services between Hamilton and two Australian destinations as passenger numbers decline.

The affected destinations are Sydney and the Gold Coast, with flights suspended from late March until October next year.

An Air New Zealand spokesperson Glen Sowry says the move is a result of weak demand and an oversupply of trans-Tasman capacity from Auckland.

Mr Sowry says many flights are only half full, and with poor yields and high fuel costs the company cannot afford to fly routes which lose money, given the current economic conditions.

He says efforts to stimulate demand with significantly lower average fares compared with the rest of the Tasman network have not worked.