Costly air fares
Jetstar chief says fees crimping more travel
Jetstar group chief executive Jayne Hrdlicka says the fees and charges on airlines threatens to crimp travel.
Airport fees, border agency charges and government taxes on both sides of the Tasman can make up 40 per of fares.
“We know it’s having an impact on travel. It’s making it too expensive for many people to take the trip they want to take,” she said.
The more airfares came down, the more conspicuous the fees and charges part of tickets becomes.
Australian passenger movement charges have increased to A$60 ($65) per passenger and border charges were also increased in this country in the past two years to $16 for biosecurity screening on top of airport charges of around $25 at Auckland Airport.
Hrdlicka says if fees went down more even more people would travel. A return trip across the Tasman could cost a family of four close to $500. “What we’re encouraging government agencies to do is really understand the underlying elasticity of travel. There’s clearly a trade-off between the size of the fees and charges and the volumes they’ll get.”
The airline has copped criticism over the past month for flight cancellations from Palmerston North and New Plymouth to Auckland which meant fans missed Bruce Springsteen and Adele concerts due to crew illness.
Hrdlicka said the airline had enough staff for its business but said the New Zealand labour market was tight.