Air New Zealand Domestic Fare Higher than Los Angeles Flights

2 godzin temu

WELLINGTON- A Tauranga Father has expressed outrage over Air New Zealand’s domestic airfare pricing structure, discovering that flying to Los Angeles (LAX) costs less than sending his daughter from Tauranga (TRG) to Wellington (WLG).

This situation highlights growing concerns about airline pricing practices and market competition in New Zealand’s domestic air travel sector.

Air New Zealand Higher Airfares

Scott Koster, who works for a non-profit organisation, encountered significantly high prices while attempting to book his daughter’s return flight to university in Wellington (WLG).

The Tauranga resident discovered one-way fares ranging from $430 to $735 for the domestic journey.

“I’m flying each way $640 to Los Angeles in November, so it’s cheaper to go to the States than it is to go to Wellington.”

Scott Koster, Tauranga Resident

The frustrated father found that alternative transportation methods proved more economical than Air New Zealand’s offerings.

According to Koster, arranging for his daughter to take a bus to Auckland, an Uber to the airport, and then a Jetstar (JQ) flight to Wellington (WLG) would cost less than a direct Air New Zealand (NZ) flight from Tauranga (TRG).

Timing of Uniform Launch Criticised

Koster specifically criticised the airline’s recent unveiling of new uniforms designed by Emilia Wickstead, calling the timing “tone deaf” given the current economic pressures facing New Zealanders.

“They’ve been doing it for a while – I just get kind of disgusted with it… I understand dynamic pricing and the free market, but just because the company can doesn’t mean it should.”

Scott Koster, Tauranga Resident

His frustration led him to file a complaint with the Commerce Commission regarding the airline’s pricing practices.

Unjustified Fares

Consumer NZ investigative writer Vanessa Prately confirmed that complaints about domestic flight costs surge regularly, particularly around holiday periods.

“High prices to fly over Easter are reflective of the levels of demand on airlines, and showcase the impact of dynamic pricing algorithms. It’s difficult for consumers to know what they’re paying for, and whether that price is fair,” Prately explained.

The consumer advocacy organisation pointed to Air New Zealand’s monopoly on several domestic routes as a key factor limiting consumer options. The Wellington (WLG) to Tauranga (TRG) route specifically leaves travellers with no alternative carriers.

“We think a market study examining all the factors that impact competition, especially on regional routes, is needed to get to the bottom of why consumers are paying so much,” Prately added.

Air New Zealand Defends

In response to the criticism, Air New Zealand (NZ) attributed the high fares to the timing of Koster’s travel needs, explaining that he was attempting to book during the conclusion of a busy school holiday, Easter, and Anzac period.

“Flights are very full next weekend and we already have a sold-out flight between Tauranga and Wellington next Sunday.”

Air New Zealand Spokeperson

The airline confirmed its use of supply and demand pricing methodologies, noting that fixed average pricing would result in quick sellouts during peak travel periods, leaving no availability for last-minute travellers.

“While we do our best to schedule additional flights, there is a limit to how much we can add, so pricing helps manage demand and encourage people to choose an alternative flight for which there is lower demand, at a lower price,” the spokesperson explained.

Recommendations for Travellers

Air New Zealand (NZ) advised passengers seeking more affordable fares to book early and maintain flexibility with their travel plans. The airline noted that off-peak periods, such as midweek afternoons, typically offer lower prices to encourage bookings during times of reduced demand.

The situation underscores broader questions about pricing transparency and market competition in New Zealand’s domestic air travel industry, particularly for regional routes where alternative carriers may be limited or nonexistent.

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