Air NZ eyes 1pc lift in business

Air New Zealand enjoyed its ‘‘busiest night for some time’’ on Saturday but things are not expected to be much better for the airline when New Zealand moves to alert level three.

Late last month, Air New Zealand reduced its network capacity by 95 per cent in response to government restrictions in place to stop the spread of Covid-19 and reduced customer demand. International border closures stopped international travel, while domestically only essential travel has been allowed.

Air New Zealand chief revenue officer Cam Wallace has been tweeting regular updates through the Covid-19 pandemic, providing revealing insights into the struggles faced by the national carrier. On Saturday he said Air New Zealand experienced its busiest night on its international network for some time, with at least seven flights in the air at one time.

All but two were charter services and flights were carrying more cargo than passengers, he said. By contrast, it was a ‘‘very quiet’ Sunday on its domestic network with low demand for six scheduled flights.

Wallace said he was anticipating Air New Zealand’s business to be about 1 per cent better under alert level three, which New Zealand moved to today.

‘‘Level three is very similar to level four from an air travel perspective. Rest assured, more than anyone else we want to get back flying,’’ Wallace said.

The Transport Ministry says under alert level three, people can travel on domestic air services only if they are travelling to do essential work, relocating a home or business, travelling for medical reasons, because of an emergency or to give effect to a court order.

There are also exemptions for those going to a funeral or tangi, foreign nationals leaving New Zealand and New Zealand residents in the Realm (Tokelau, Niue, Cook Islands) returning home.

Those who arrived in New Zealand from overseas and have completed 14 days of quarantine are also exempt, as well as those who have been ‘‘stuck in wrong place’’ and need to get back to home or place of work.

You cannot travel if you are required to self-isolate, have symptoms of Covid-19; are being tested for Covid-19; or are a suspected, probable or confirmed case of Covid-19.

Physical distancing on aircraft still applies at alert level three.

At alert level two, ‘‘nonessential’’ travel should be minimised and airlines should leave a seat empty next to a passenger.

Air New Zealand has been applying a physical distancing policy since late last month.

Meanwhile, passengers worried about how they will be able to spend Air New Zealand credit resulting from cancelled flights because of coronavirus have been given some certainty.

More than 200,000 passengers had their flight in credit as a result of coronavirus-related cancellations, and some have been expressing concerns that they may not be able to use credit from cancelled international flights on new domestic airfares.

Wallace said the airline was working on a digital product so that customers had ‘‘maximum flexibility’’ in relation to credit.

He said customers would be able to consolidate credits.

An Air New Zealand spokeswoman told that as a general rule for credit obtained because of Covid-19, it was allowing credits to be applied to all flights.

In recent days it updated its credit policy to provide additional flexibility. This included extending the booking period for credit through to June 30, next year.

Once an new airfare is booked, customers have 12 months to complete their travel.

‘‘Rest assured, more than anyone else we want to get back flying.’’

Cam Wallace

Air NZ chief revenue officer