Airlines pile on seats as Oz bubble looms
Virgin Australia and Air New Zealand have poured capacity back on to the Tasman from late March in a renewal of intense rivalry — if and when the planned twoway travel bubble goes ahead.
While Qantas is saying little about its plans, it too has loaded dozens of new flights per week from March 28 on to its booking site.
Prime Minister Jacinda Ardern has said a date for the bubble could be in place from the end of March, re-energising what was one of the most competitive sectors in the world.
Virgin Australia suspended transtasman flights in March this year and now has more than 70 services to New Zealand per week currently on sale from March 28.
And Virgin fired another competitive shot yesterday, announcing it would expand eligibility of its elite frequent flyer scheme in an effort to lure customers from other airlines including Air New Zealand.
A Virgin Australia spokesman said the New Zealand Government’s in-principle decision to establish quarantinefree travel with Australia was very much welcomed and provided further confidence for travellers and those keen to do business across the Tasman.
He said the airline would adjust its schedule in line with demand and the start dates for quarantine-free travel being worked through by the respective governments.
Virgin Australia shut down its New Zealand operation at the start of April, costing 550 to 600 jobs, and the airline entered administration on April 21 with more than $7b in debt. Private equity firm Bain Capital won a fierce bidding war and has recapitalised the airline, installed ex-Jetstar (and a2 Milk) boss Jayne Hrdlicka as chief executive and has redrawn battle lines with Qantas in the Australian domestic market.
Virgin’s network would include flights between Auckland to Brisbane, Melbourne, Coolangatta and Sydney. It will fly between Christchurch, Brisbane and Melbourne. Queenstown will be linked to Brisbane, Melbourne and Sydney.
The airline says passengers with credits from transtasman flights cut due to Covid-19 will be able to use their credits on flights between the two countries.
Air New Zealand’s website shows a sharp increase in capacity and fall in prices from March 28. From as few as one flight a day between Auckland and Sydney through until capacity ramps up to as many as five times a day, one-way fares halve from more than $600.
A Qantas spokesman said there was a limited schedule at the moment.
“We know there’s a huge amount of pent-up demand for travel between Australia and New Zealand and we’re looking forward to adding [ capacity once details about the bubble are] confirmed.”
Qantas will operate two services a week between Sydney and Auckland with Jetstar to operate two to three flights a week from Sydney to Auckland until the end of January.
Before the pandemic the airlines were flying up to 150 transtasman flights a week.
Aviation consultant Irene King said restarting the market could be complex and first depended on very clear agreement between the two governments on a start date.
She said they also needed to set conditions of entry for Kiwis to all of Australia beyond New South Wales and the Northern Territory.
Other factors included whether travellers would need to be traceable, and how airports would segregate transit passengers from
Covid hotspots and those flying between New Zealand and Australia.
We’re looking forward to [adding capacity]. Qantas
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