Latest news with #RichardThomson
Scoop
25-04-2025
- Business
- Scoop
Air NZ Blames Cost Of Inflation For Rise In Airline's Airfares
, Checkpoint reporter Air New Zealand's Chief Financial Officer Richard Thomson has blamed cost of inflation since the Covid-19 pandemic for a rise in the airline's airfares. Thomson also told Checkpoint the airline was not price gouging. 'We are hugely sympathetic to the travelling public, I know the cost of airfares over the past three or four years has gone up significantly. 'All of our costs have gone up by the thick end of 30 percent over the last three years, and obviously to run a sustainable economic business we need to ensure that is reflected in airfares,' he said. Thomson said New Zealand had a complicated geography and was the size of Japan with a population of Sydney. New Zealand Airport Association chief executive Billie Moore told RNZ on Wednesday that Air New Zealand charged high prices because there was no competition, and 'because they can.' In response, Thomson said that was not the case. '… New Zealand is an open sky market so it is open to competition anybody with an aircraft operation certificate can suit up in competition here.' He said their costs reflected the costs of providing their services. 'We've really worked hard to absorb as much of these cost increases as we can and keep regional and domestic airfares as affordable as we can.' Thomson said it was regrettable that flying was unaffordable to some. He added whilst Consumer NZ had called for a ministerial inquiry into the cost of airfares, it would likely be a costly exercise and not deliver any meaningful information. RNZ heard from a man left home at 1.30am to drive to Auckland Airport to save hundreds on air fares, while another 18-year-old couldn't come home for his first university holidays because of the cost of flights. This was the reality for many living outside the main centres who relied on air travel to get around, in markets with no or little competition. Since Tauranga man Scott Koster went to the Commerce Commission about Air New Zealand's pricing, more stories of regional frustration with air travel, and the national carrier, have emerged. Air NZ said running an airline was costly, but that didn't wash with those who relied on it to get around and felt airfares were too expensive. Like many commuters from smaller centres, Matt Walker faces a dilemma – fly from home at great cost, or seek cheaper fares in the big centres. 'My whare is in Rotorua. I have a hybrid role where I have to travel to Christchurch once a month,' he said. 'It's actually cheaper for me to drive to Auckland, catch the flight from Auckland, pay for parking for the three or four days I'm there, and at the end of my time come back and then do the reverse. 'It usually saves me $100 to $200 doing it that way.' Flying from Rotorua could otherwise cost $400-$500 one way on Air NZ, Walker said. Even if he were to score a Grab-a-seat deal, the times won't get him to his technical writing job for a full day's work. He's on a fixed-term contract, so moving south with his family wasn't an option. 'To get me to work on time I leave home usually about 1.30am and usually catch either the 6 or 6.30 flight, go down and work a full day. 'Coming home I try to get an early-afternoon flight so I get home to my whānau at 6.30 or 7pm. It's a pretty hard-going few days.' Walker said this grated when he thought about the profit the national carrier made – expected to be $150 million – $190m this year, down from $222m last year. Then, he said, there was the money it spent on celebrity safety videos and new uniforms. In Hawke's Bay, Angela Troup was looking forward to her 18-year-old son Jett coming home from Dunedin for his first university break, but the cost of flights on Air NZ was too much. 'I started checking a couple of months ago for this particular week's break and even then each flight was in the mid-fours [four-digit figures]. I was like, wow, okay, because there's another break coming up in June.' Troup's already booked flights for that, but worries about the next few years of Jett's land surveying degree as he samples life in the south. He's the first from his family to go to university. 'It is hard. I really wish that he was able to come home. He does as well. We're talking daily. He says there's not too many kids left there. It's all a bit quiet.' Otago Nuggets and Southern Hoiho basketball general manager Angela Ruske said the teams were lucky for this season to make group bookings early last year before prices rose. However, if teams made playoffs, and flights couldn't be booked early early, the budget took a hit. 'You're booking flights last minute and booking flights last minute with Air New Zealand is extremely expensive, and we would have a travelling team of 15-20 people. 'I know last year when we were looking at potential flights online, and this is without a group booking, the cheapest flight was $550 one way to Auckland.' Next year's men's and women's league schedules weren't out yet, but if prices rose Ruske couldn't rule out flying to or from games on the same day. 'It's not ideal, especially when you're doing a long-haul flight up to Auckland. You've got players that are up to two metres-plus tall crammed into a flight for a good couple of hours. 'It's not ideal travelling the morning of [a match], but you save in accommodation costs and all the food costs and rentals costs for vans.' Blenheim woman Nikki, who didn't want her surname used, often had to miss her daughter's rowing and running events around New Zealand if flights were too dear. She has a clear message for the national carrier. 'Ultimately, I'd just like to see Air NZ be competitive in their pricing and not price gouge. That's my biggest message – please don't take advantage of us because we live in a regional or rural area.'
Scoop
25-04-2025
- Business
- Scoop
Air NZ Blames Cost Of Inflation For Rise In Airline's Airfares
Article – RNZ Air New Zealand's chief financial officer Richard Thomson says costs of inflation has caused a rise in the airlines' airfares. , Checkpoint reporter Air New Zealand's Chief Financial Officer Richard Thomson has blamed cost of inflation since the Covid-19 pandemic for a rise in the airline's airfares. Thomson also told Checkpoint the airline was not price gouging. 'We are hugely sympathetic to the travelling public, I know the cost of airfares over the past three or four years has gone up significantly. 'All of our costs have gone up by the thick end of 30 percent over the last three years, and obviously to run a sustainable economic business we need to ensure that is reflected in airfares,' he said. Thomson said New Zealand had a complicated geography and was the size of Japan with a population of Sydney. New Zealand Airport Association chief executive Billie Moore told RNZ on Wednesday that Air New Zealand charged high prices because there was no competition, and 'because they can.' In response, Thomson said that was not the case. '… New Zealand is an open sky market so it is open to competition anybody with an aircraft operation certificate can suit up in competition here.' He said their costs reflected the costs of providing their services. 'We've really worked hard to absorb as much of these cost increases as we can and keep regional and domestic airfares as affordable as we can.' Thomson said it was regrettable that flying was unaffordable to some. He added whilst Consumer NZ had called for a ministerial inquiry into the cost of airfares, it would likely be a costly exercise and not deliver any meaningful information. RNZ heard from a man left home at 1.30am to drive to Auckland Airport to save hundreds on air fares, while another 18-year-old couldn't come home for his first university holidays because of the cost of flights. This was the reality for many living outside the main centres who relied on air travel to get around, in markets with no or little competition. Since Tauranga man Scott Koster went to the Commerce Commission about Air New Zealand's pricing, more stories of regional frustration with air travel, and the national carrier, have emerged. Air NZ said running an airline was costly, but that didn't wash with those who relied on it to get around and felt airfares were too expensive. Like many commuters from smaller centres, Matt Walker faces a dilemma – fly from home at great cost, or seek cheaper fares in the big centres. 'My whare is in Rotorua. I have a hybrid role where I have to travel to Christchurch once a month,' he said. 'It's actually cheaper for me to drive to Auckland, catch the flight from Auckland, pay for parking for the three or four days I'm there, and at the end of my time come back and then do the reverse. 'It usually saves me $100 to $200 doing it that way.' Flying from Rotorua could otherwise cost $400-$500 one way on Air NZ, Walker said. Even if he were to score a Grab-a-seat deal, the times won't get him to his technical writing job for a full day's work. He's on a fixed-term contract, so moving south with his family wasn't an option. 'To get me to work on time I leave home usually about 1.30am and usually catch either the 6 or 6.30 flight, go down and work a full day. 'Coming home I try to get an early-afternoon flight so I get home to my whānau at 6.30 or 7pm. It's a pretty hard-going few days.' Walker said this grated when he thought about the profit the national carrier made – expected to be $150 million – $190m this year, down from $222m last year. Then, he said, there was the money it spent on celebrity safety videos and new uniforms. In Hawke's Bay, Angela Troup was looking forward to her 18-year-old son Jett coming home from Dunedin for his first university break, but the cost of flights on Air NZ was too much. 'I started checking a couple of months ago for this particular week's break and even then each flight was in the mid-fours [four-digit figures]. I was like, wow, okay, because there's another break coming up in June.' Troup's already booked flights for that, but worries about the next few years of Jett's land surveying degree as he samples life in the south. He's the first from his family to go to university. 'It is hard. I really wish that he was able to come home. He does as well. We're talking daily. He says there's not too many kids left there. It's all a bit quiet.' Otago Nuggets and Southern Hoiho basketball general manager Angela Ruske said the teams were lucky for this season to make group bookings early last year before prices rose. However, if teams made playoffs, and flights couldn't be booked early early, the budget took a hit. 'You're booking flights last minute and booking flights last minute with Air New Zealand is extremely expensive, and we would have a travelling team of 15-20 people. 'I know last year when we were looking at potential flights online, and this is without a group booking, the cheapest flight was $550 one way to Auckland.' Next year's men's and women's league schedules weren't out yet, but if prices rose Ruske couldn't rule out flying to or from games on the same day. 'It's not ideal, especially when you're doing a long-haul flight up to Auckland. You've got players that are up to two metres-plus tall crammed into a flight for a good couple of hours. 'It's not ideal travelling the morning of [a match], but you save in accommodation costs and all the food costs and rentals costs for vans.' Blenheim woman Nikki, who didn't want her surname used, often had to miss her daughter's rowing and running events around New Zealand if flights were too dear. She has a clear message for the national carrier. 'Ultimately, I'd just like to see Air NZ be competitive in their pricing and not price gouge. That's my biggest message – please don't take advantage of us because we live in a regional or rural area.'
Scoop
25-04-2025
- Business
- Scoop
Air NZ Blames Cost Of Inflation For Rise In Airline's Airfares
, Checkpoint reporter Air New Zealand's Chief Financial Officer Richard Thomson has blamed cost of inflation since the Covid-19 pandemic for a rise in the airline's airfares. Thomson also told Checkpoint the airline was not price gouging. "We are hugely sympathetic to the travelling public, I know the cost of airfares over the past three or four years has gone up significantly. "All of our costs have gone up by the thick end of 30 percent over the last three years, and obviously to run a sustainable economic business we need to ensure that is reflected in airfares," he said. Thomson said New Zealand had a complicated geography and was the size of Japan with a population of Sydney. New Zealand Airport Association chief executive Billie Moore told RNZ on Wednesday that Air New Zealand charged high prices because there was no competition, and "because they can." In response, Thomson said that was not the case. "... New Zealand is an open sky market so it is open to competition anybody with an aircraft operation certificate can suit up in competition here." He said their costs reflected the costs of providing their services. "We've really worked hard to absorb as much of these cost increases as we can and keep regional and domestic airfares as affordable as we can." Thomson said it was regrettable that flying was unaffordable to some. He added whilst Consumer NZ had called for a ministerial inquiry into the cost of airfares, it would likely be a costly exercise and not deliver any meaningful information. RNZ heard from a man left home at 1.30am to drive to Auckland Airport to save hundreds on air fares, while another 18-year-old couldn't come home for his first university holidays because of the cost of flights. This was the reality for many living outside the main centres who relied on air travel to get around, in markets with no or little competition. Since Tauranga man Scott Koster went to the Commerce Commission about Air New Zealand's pricing, more stories of regional frustration with air travel, and the national carrier, have emerged. Air NZ said running an airline was costly, but that didn't wash with those who relied on it to get around and felt airfares were too expensive. Like many commuters from smaller centres, Matt Walker faces a dilemma - fly from home at great cost, or seek cheaper fares in the big centres. "My whare is in Rotorua. I have a hybrid role where I have to travel to Christchurch once a month," he said. "It's actually cheaper for me to drive to Auckland, catch the flight from Auckland, pay for parking for the three or four days I'm there, and at the end of my time come back and then do the reverse. "It usually saves me $100 to $200 doing it that way." Flying from Rotorua could otherwise cost $400-$500 one way on Air NZ, Walker said. Even if he were to score a Grab-a-seat deal, the times won't get him to his technical writing job for a full day's work. He's on a fixed-term contract, so moving south with his family wasn't an option. "To get me to work on time I leave home usually about 1.30am and usually catch either the 6 or 6.30 flight, go down and work a full day. "Coming home I try to get an early-afternoon flight so I get home to my whānau at 6.30 or 7pm. It's a pretty hard-going few days." Walker said this grated when he thought about the profit the national carrier made - expected to be $150 million - $190m this year, down from $222m last year. Then, he said, there was the money it spent on celebrity safety videos and new uniforms. In Hawke's Bay, Angela Troup was looking forward to her 18-year-old son Jett coming home from Dunedin for his first university break, but the cost of flights on Air NZ was too much. "I started checking a couple of months ago for this particular week's break and even then each flight was in the mid-fours [four-digit figures]. I was like, wow, okay, because there's another break coming up in June." Troup's already booked flights for that, but worries about the next few years of Jett's land surveying degree as he samples life in the south. He's the first from his family to go to university. "It is hard. I really wish that he was able to come home. He does as well. We're talking daily. He says there's not too many kids left there. It's all a bit quiet." Otago Nuggets and Southern Hoiho basketball general manager Angela Ruske said the teams were lucky for this season to make group bookings early last year before prices rose. However, if teams made playoffs, and flights couldn't be booked early early, the budget took a hit. "You're booking flights last minute and booking flights last minute with Air New Zealand is extremely expensive, and we would have a travelling team of 15-20 people. "I know last year when we were looking at potential flights online, and this is without a group booking, the cheapest flight was $550 one way to Auckland." Next year's men's and women's league schedules weren't out yet, but if prices rose Ruske couldn't rule out flying to or from games on the same day. "It's not ideal, especially when you're doing a long-haul flight up to Auckland. You've got players that are up to two metres-plus tall crammed into a flight for a good couple of hours. "It's not ideal travelling the morning of [a match], but you save in accommodation costs and all the food costs and rentals costs for vans." Blenheim woman Nikki, who didn't want her surname used, often had to miss her daughter's rowing and running events around New Zealand if flights were too dear. She has a clear message for the national carrier. "Ultimately, I'd just like to see Air NZ be competitive in their pricing and not price gouge. That's my biggest message - please don't take advantage of us because we live in a regional or rural area."
Otago Daily Times
24-04-2025
- Business
- Otago Daily Times
Air NZ stands by high fares for the South
Air New Zealand has defended high prices Southerners are railing against, but its chief financial officer could only offer sympathy yesterday. Richard Thomson's comments come amid a wave of discontent being expressed in the South about the national carrier's charging system, which many believe is inequitable. "We're very sympathetic to the fact that consumers who themselves find themselves in a disposable income crunch are also having to pay more for airfares. "But there's equally ... no point in us pricing airfares at less than the cost of delivering the service." At least two Dunedin sports organisations told the Otago Daily Times that costly fares could spell the end of national tournaments for the South. Dunedin Netball general manager Lee-Anne Anderson was particularly disappointed with Air New Zealand's approach. "We were lucky to host the Netball New Zealand open champs in 2023 and under-18 champs last year. "But with a rotation cycle of tournament allocation and the significant increase in cost of travel to and from Dunedin, we are concerned this will reduce, if not eliminate, the chance of hosting national tournaments at the Edgar Centre again." Basketball Otago general manager Jodi Brown shared the netball community's concerns. Players, coaches and supporters were "constantly burdened" by the high cost of travel to attend national sporting tournaments, she said. "National sporting bodies are often reluctant to allocate major tournaments to Dunedin. One of the biggest reasons for this is the high travel costs involved for visiting teams. "As a result, our region is unfairly overlooked and our local athletes are repeatedly the ones paying the price — both literally and figuratively." Mr Thomson said he could not comment on specific examples. "We do have commercial agreements in place with a lot of large sporting teams or sporting teams across the country, and that's knowing the vagaries of whether you're getting into semifinals or finals or where you might be playing ... So we'll be as flexible as we can to accommodate the vagaries of all that. "But the costs of air travel are going up." It had seen as much cost price inflation in the past three years as it would normally see over a decade, Mr Thomson said. "We are motivated to deliver the very best service that we can, at the best price we can that covers the cost of delivering the service in question." Asked whether having more competitors enter the market would force Air New Zealand to drop its prices, Mr Thomson said it was "not as simple as that". "We're a complicated island nation with complicated geography about the size of Japan, but we've got a population of 5.3million people, which is basically the population of Sydney. "We're trying to connect everybody, and we work our damnedest to do this." The international market had also affected the high increase, factors including labour costs, airport levies and passenger levies across the network, he said. "We are very hopeful and optimistic that price increases will start to moderate as we move into a less inflationary environment than we've had. "We'll keep doing our very best to keep people connected at the lowest price we can offer." The issue has caught the attention of the government. Acting Transport Minister James Meager acknowledged as an isolated, sparsely populated island nation, air travel was particularly important. "Ultimately, pricing will come down to how much competition there is in the airline market, and the increased costs airlines are facing as they continue to recover from the damage caused by Covid-19. "What government can do is make sure airlines are competitive, regulations and costs are limited and necessary for safety of passengers and that we support infrastructure investment in airports and airfields to make it easier for airlines to operate."
Time of India
24-04-2025
- Business
- Time of India
Air New Zealand faces backlash over rising airfares
Live Events Air New Zealand is under growing scrutiny as passengers express frustration over soaring airfares. The airline has blamed the rise in ticket prices on inflation pressures and the impacts of the COVID-19 Financial Officer Richard Thomson said non-fuel operating costs have risen approximately 5%, contributing to an overall inflation impact of 25% to 30% over the past five NZ, an independent, non-profit organization advocating for consumer rights since 1959, reports that domestic flight prices have surged between 34% and 297% compared to pre-pandemic levels. For many travelers, the rising cost of flying with Air New Zealand has become have called for a government inquiry into its pricing practices. Additionally, the Commerce Commission is investigating whether Air New Zealand has breached the Fair Trading Act, particularly in how it communicates delays and expressed regret that air travel is becoming inaccessible for some and emphasized that the airline is working to control costs while remaining economically viable. He also noted that operating in a geographically complex country the size of Japan but with the population of Sydney presents additional financial challenges.
