Air NZ

The price of last-minute air fares out of Dunedin is upsetting some travellers, and prompting renewed calls for competition.

An Australian consumer watchdog is expected to release its decision on the proposed alliance between Air New Zealand and Pacific Blue by the end of the year.

Cheap airfares have been cleared for take-off and Dunedin is the first airport in the country to offer Air New Zealand travellers stand-by fares.

Air New Zealand has announced it will boost domestic capacity - including the Dunedin-Auckland sector by nearly 50% next year - just a week after Pacific Blue announced it would leave the New Zealand domestic market.

Air New Zealand has booked a slight gain on operating earnings for the full year - up 3% from $688 million to $708 million - but revealed a decline in long-haul demand and falls in capacity and cargo.

Craigs Investment Partners is refusing to be drawn into a public argument with Air New Zealand about the stake Auckland International Airport Ltd (AIAL) has taken in the Queenstown Airport Corporation (QAC).

The 2008-09 financial year provided the perfect storm for airlines with record oil prices and significant increases in global capacity followed by a global financial crisis and demand destruction. Through all of this, Air New Zealand remained profitable.

Many people are starting to believe that the National-led Government is preparing to partially privatise several state-owned enterprises, with Finance Minister Bill English indicating there would be strong demand for Kiwibank shares. Business editor Dene Mackenzie investigates what is on offer.

Average airfares across the Tasman could fall between 10 percent and 20 percent as a result of a proposed alliance between Air New Zealand Ltd and Virgin Blue Airlines Group, according to Air NZ chief executive Rob Fyfe.