29 May 2010

Rivalry in long-haul air travel looks set to intensify

5:56 pm on 29 May 2010

An aviation analyst says Continental Airline's new route to New Zealand marks the start of a new long-haul movement that will open up routes, stimulate the market and drive down prices.

Continental plans five direct flights a week from its base in Houston to Auckland from November 2011.

The route will be serviced by the airline's new Boeing 787 Dreamliners, which it expects to have from August next year.

An aviation analyst at Forsyth Barr, Rob Mercer, says the extra flights and competition should boost the aviation and tourism sectors, which have been hit hard in the global recession.

Smaller passenger aircraft with a longer range, such as the Dreamliner, make it possible for airlines to open up direct routes deeper into Asia and North America, Mr Mercer says.

Potentially world's largest airline

In some respects, he says, Continental has stolen the thunder of Air New Zealand - which is also bringing in the Dreamliner - by introducing a later version. He thinks competition between the airlines will heat up next year.

Continental is finalising a merger with fellow US airline United which, if approved, will be worth $US3.2 billion and make the combined airline the world's largest carrier.

Auckland will be Continental's 63rd international destination.