Labour is taking aim at Air New Zealand's dominance of regional routes, promising to force open airport infrastructure to smaller airlines and to enshrine an array of consumer protections if elected.
The party announced its aviation policy today, pledging automatic refunds for cancelled flights on larger carriers, all-in pricing and new Commerce Commission scrutiny of airline fares, costs and profits.
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Labour leader Chris Hipkins said flying was a necessity for many Kiwis, not a luxury.
"For many New Zealanders flying is how we get home for a birthday, get to a hospital appointment in another city, or keep a business running," he said.
"But flying is expensive, and on many regional routes there is little or no competition. Kiwis are struggling with the cost of living and are finding it harder and harder to make those important trips."
Commerce spokesperson Arena Williams said an uncompetitive market hurt travellers.
"For many regional routes there is limited or no competition. That means fewer choices for travellers and less pressure on airlines to offer better prices and service," she said.
"Smaller airlines shouldn't have to compete with one hand tied behind their backs."
Labour acknowledged that fuel, maintenance and the cost of running smaller aircraft on shorter routes push up the cost of domestic flying, but said those factors did not "fully explain the big price rises we've seen in recent years".
The party's policy document cites a Commerce Commission finding that Air New Zealand faces limited or no competition on many regional routes.
Under the policy announced today, Labour said it wanted to require "fair access" to gates, check-in, baggage handling and ground services for all domestic airlines.
It would also update the rules that let airlines connect their flights, so smaller carriers could reach more passengers, including people transferring from international flights.
Major airlines would also have to report their fares, costs, and profits to the Commerce Commission regularly. They would also have to publish how often their flights are delayed or cancelled and how reliably they handle bags.
"We'll make airlines more accountable, with greater scrutiny of fares, costs and profits and clear reporting on delays, cancellations and baggage," Williams said.
Big airlines would have to give automatic refunds when flights are cancelled or significantly changed, and compensate or reimburse passengers when checked bags are significantly delayed or paid services aren't delivered.
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"When an airline screws up, passengers shouldn't have to fight to get their money back. If your flight is cancelled or significantly changed, you'll get an automatic refund."
Under the plan, airlines would also have to tell customers when they use personal data, such as search history, to set the price they are offered.
Airlines would also have to show all-in fares up front, with every fee included, so travellers could compare the true cost of flights.
"Labour will make sure the price you see is the price you pay, you get your money back when things go wrong, and more airlines compete for your business," the party said.
The party also wanted to look at ways to help regulated airports borrow more cheaply.
The policy document says the refund and compensation rules are aimed at big airlines, not small regional carriers such as Sounds Air or Air Chathams.
Williams took a swipe at the Government's approach.
"National's answer has been to hand smaller airlines a bit of extra cash to help them get by, while leaving the barriers to competition in place. That won't help smaller airlines grow or give passengers more choice," she said.
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