Air New Zealand keen to keep domestic fares affordable despite losses

Source: 1News

Air New Zealand is keen to keep domestic fares affordable despite losses due to the Covid-19 lockdown.

It comes as lockdown has caused a 95 per cent decrease in the airline’s overall capacity.

The airline's chief revenue officer Cam Wallace tweeted about the organisation's approach today.

"Working on pricing options as we incrementally expand the domestic @FlyAirNZ
network," the tweet read.

"We are keen to keep fares affordable in a higher cost per seat environment. We will continue to override our algorithms in the short-term."

However, when asked if this meant there would be no cheap Grabaseat deals in the near future, Mr Wallace agreed.

"That would be a correct assessment- - probably not the right moment in time for $1 fares...."

Air New Zealand also released a statement outlining plans when Alert Level 2 is announced.

“Following the Prime Minister’s announcement yesterday that domestic travel will be permitted under Alert Level 2, Air New Zealand is working through what this will mean for its domestic schedule.

"We are very keen to get Kiwis flying again as we know this will not only help reconnect family and friends, but also support New Zealand’s tourism industry and regional economies. We will announce our Level 2 domestic schedule as soon as we can.

“As we prepare to enter Alert Level 2, Air New Zealand is also working to implement additional health protocols. We will be able to share more details on this soon.”

It comes as around 300 Air New Zealand pilots are being made redundant this week, with the 900 remaining taking a pay cut of around 30 per cent.

The New Zealand Air Line Pilots’ Association (NZALPA) confirmed the latest development today.

Air New Zealand has struggled through the fallout of the Covid-19 pandemic, with staff across its pilot and cabin crews facing redundancies.

Routes have been slashed and planes grounded as countries around the world shut their borders and tourism dries up.

Some of the pilots are taking voluntary redundancy or accepting early retirement, NZALPA said.

Meanwhile, Jetstar remains out of action in New Zealand, having grounded its fleet in March.

"We are reviewing our network and any decisions will be based on how and when restrictions are eased and also where there is demand."