Air NZ price hikes draw rebuke from Jones

WELLINGTON: Regional Development Minister Shane Jones has again taken aim at Air New Zealand, saying its latest domestic price increases were a further ‘‘affront’’ to the provinces and the airline needed to ‘‘go back to basics’’.

Mr Jones was previously strongly critical of Air NZ over its services for regional New Zealand, going so far as to say some board members should go.

After news yesterday that Air NZ would lift its prices by a further 5% tomorrow to help cover increased costs such as labour and fuel, Mr Jones said he knew the company faced challenges, such as problems with its Dreamliners and fuel increases.

‘‘It’s a commercial decision, I accept that.

‘‘They are facing a bunch of commercial pressures, but Air New Zealand should have no doubt my voice will not be stifled by these matters.

‘‘They will justify their price increases but lots of people have already contacted me saying they are disappointed.’’ In February, Air New Zealand raised charges by up to 50% for extras on its domestic jet flights.

In addition, from tomorrow, the charge for seat plus bag will increase from $10 to $15. Flexi Time addon fares on A320s will increase from $30 to $35 and Flexi Plus will rise from $50 to $55.

Changes also apply to ATR turbo prop flights between Christchurch and Wellington and Christchurch and Dunedin.

An airline spokeswoman said the company was no longer able to absorb the rising cost pressures in fuel, labour and goods and services.

Fuel prices had increased by more than 50% in the past year.

The increase would initially apply only to domestic fares, but it is understood international fares will also be reviewed.

❛ Air NZ should have no doubt my voice will not be stifled by these matters

Shane Jones