However, the national carrier is emphasising more than 50% of its fares will be at its cheapest rate and in-flight services will be of a higher standard.
Changes will include some seats with additional leg room, free use of in-seat movie screens, and direct access to international links through its global Star Alliance network.
Air New Zealand's new general manager of Tasman Pacific Airlines, Glen Sowry, said yesterday Dunedin tourism could be ‘‘boosted hugely'' because Air New Zealand's brand was better recognised in Australia than that of the no-frills Freedom Air.
‘‘Our lead-in fares will be about $30 more expensive than Freedom, to reflect the increased services, meals and in-flight entertainment and [use of] frequent-flyer points,'' Mr Sowry said.
He acknowledged the difference between the lowest Freedom fare and the most expensive Air New Zealand fare would be greater than $30, but said the more expensive spare-seat capacity had to be maintained for travellers unable to book in advance.
‘‘We can't sell the whole plane [seats] cheap, as there would be no last-minute capacity [on offer]. It's a balancing act,'' Mr Sowry said.
Dunedin will immediately gain an extra Sydney flight, resulting in three return flights a week. There will also be four flights a week to Brisbane and two flights a week to Melbourne between November and March.
Mr Sowry reiterated at least half the seats on the transtasman flights from Dunedin would be the low Smart Saver fares, starting at $219 one way. Freedom Air's lowest fares were $199 one way, but they were available in limited numbers.
Last September, Air New Zealand announced it was ending its 12-year-old subsidiary Freedom Air flights nationally from March 30, to be replaced the next day with an Air New Zealand service.
Freedom's most popular route, to Brisbane, had recorded an average 78% passenger loading.
For the new Air NZ service to be sustainable, passenger loadings of 75% were needed for the Brisbane and Sydney flights, Mr Sowry said.
‘‘Brisbane works well and there are indications of good support for Sydney. But the community will have to support it [Sydney] to build demand and sustain it for expansion,'' he said.
The Dunedin business community has become increasingly frustrated with Air New Zealand, having unsuccessfully lobbied for more than two years for export space on its planes to and from Sydney, Brisbane and Melbourne.
At present, perishables being exported to Australia have to go via Christchurch.
Mr Sowry said there was not enough potential export freight on offer from Dunedin to make it financially viable.
- Ozjet has confirmed the transtasman service planned to replace Freedom Air from Palmerston North has been cancelled because of a takeover bid for the Australian airline.
Our Airline, previously Air Nauru, is bidding for Ozjet, which had proposed operating four days a week from Brisbane and Sydney to Palmerston North from Monday.
