Air New Zealand has slashed long-term transtasman airfares for direct flights from Dunedin by nearly a quarter in an effort to boost passenger numbers on "half-empty planes".
The airline will this week begin a major advertising campaign aimed at increasing passenger numbers by as much as 15%.
"We have not held anything back in our efforts," Air New Zealand Tasman Pacific general manager Glen Sowry said.
The campaign is expected to focus on the cost and convenience for Otago and Southland travellers of a Dunedin transtasman service, he said. Transtasman flights from Dunedin to Sydney (previously $304), Melbourne ($289) and Brisbane ($290) have been reduced to $239.
In comparison, direct flights from Wellington to Sydney, Melbourne and Brisbane cost $289, and from Christchurch to the same destinations, $209. Air New Zealand last month announced it was suspending its twice-a-week Dunedin-to-Sydney service from April 16 to October 24, and reducing its Dunedin-to-Brisbane flights to one service a week during May and June.
Mr Sowry at the time said the airline could not continue to fly half-empty planes.
"We are confident [these airfares] will prove to be popular...and help to improve load factors," he said yesterday.
Air NZ reduces transtasman prices> From Page 1A spokeswoman for the airline confirmed current loading from Dunedin was about 55% to Sydney, and 65% to Brisbane.
The airline hoped the new fares, available now, could increase passenger numbers by "at least 10% to 15% on these routes", she said. Tourism Dunedin chief executive Hamish Saxton said Air New Zealand "were not in the business of losing money".
"By offering these airfares they are obviously gauging interest from the region for transtasman services. The message the airline is sending us is that Dunedin, Otago and Southland are an important market."
Competition on the route has resulted in transtasman airfares being the lowest in 20 years, he said. Dunedin International Airport chief executive John McCall did not return calls yesterday.
