Concern swells over 'horrendous' flight costs

Otago Daily Times

23-04-2025

The women's basketball team representing the South was "probably lucky" not to make last year's final because it would have struggled to pay the costly airfares to get to the game, the general manager says.
Dire accounts of prohibitive airfares continue to flood in from Otago Daily Times readers, including long-distance couples facing costs of more than $1000 to see each other, leaving some considering a cheaper reunion in Australia instead.
Concern high Air NZ fares cutting off South
Calls are growing for the government, a majority shareholder in national carrier Air New Zealand, to address "extortionate" airfares, following Tauranga man Scott Koster's complaint to the Commerce Commission about the airline.
Otago Nuggets and Southern Hoiho general manager Angela Ruske said the Hoiho's flights for the 2025 season had been booked since mid-2024, but the fare increases were evident if flights were changed or cancelled.
"With the Hoiho, for example, if we had made a finals playoff, the cost per-person, one-way to get to Auckland was $550," she said.
"Multiply that both ways by 15-plus people, it was probably lucky or fortunate that we didn't have to spend that cost, because that's well over what we'd normally expect to pay for flights."
She was most concerned about flight costs for next season — and changes to the team's programme, such as travelling on game day, may be needed.
Regional Development Minister Shane Jones said he had been "overwhelmed" with calls from people concerned costly and unreliable flights were disconnecting regional New Zealand from the rest of the country.
He said he would be taking the matter to State Owned Enterprises Minister Simeon Brown and Finance Minister Nicola Willis as the government had bailed out the airline during the pandemic.
"Air New Zealand has a great deal of equity in its brand ... but losing the confidence of garden-variety Kiwis is a deep and troubling contradiction."
Taieri MP Ingrid Leary said "horrendous" airfares were marginalising people and crippling businesses in the lower South Island and the government needed to issue a "please explain" to the airline.
"This is the ideal scenario for a newly minted Minister for the South Island to show his chops and how much influence he has and get it sorted."
Dunedin MP Rachel Brooking said she had heard "outrageous examples" of people paying "extortionate" prices to travel to and from Dunedin.
"The government, as a shareholder, should be able to give some direction to Air New Zealand to provide affordable flights to southern regions."
Chief executive of industry group NZ Airports Association Billie Moore said a market study on the aviation sector was needed to address Air New Zealand's monopoly.
"[The sector is] less competitive than groceries and banks that the government spend a lot of energy on," she said.
"It's time to focus on the biggest monopoly in New Zealand, and that is, sadly, the national carrier."
Air New Zealand had no competition on 80% of its domestic routes, which stunted growth and innovation seen in markets around the world, she said.
"We're 1.5 million [available seats in the domestic network] down from where we were in 2019.
"Usually airline markets grow, and capacity grows, and the fact that it's declined that much tells us there's something seriously wrong with the health of the network."
Support for smaller airlines, investment in another large competitor and collection and analysis of aviation performance data by the government could restore competition to the market, she said.
Air New Zealand chief commercial officer Jeremy O'Brien said significant operating costs, such as fuel and labour, were reflected in airfares.
A supply and demand-based pricing system meant booking flights early was the best way to find cheaper fares, he said.
A spokesman for Mr Brown said the minister was not a shareholding minister of Air New Zealand while Mrs Willis was unable to answer the ODT 's questions by deadline.
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