Jones hones in on airfares
NZ First may have to campaign at the next election on a fund to improve regional aviation, MP Shane Jones says.
Jones, who is also Regional Economic Development Minister, made the comment after an airport industry group voiced concerns that domestic airfares had leapt in the past three months of 2019, adding an average of $14 to each ticket.
Airports New Zealand, which represents airports and related businesses, blamed fare increases on airlines ‘‘taking advantage of recent developments’’, such as Jetstar’s withdrawal from regional routes, to boost their prices.
Association chief executive Kevin Ward said the cost of domestic air travel had jumped 8.5 per cent in the past three months compared with a year ago, according to Stats NZ figures.
It was an issue Jones would be discussing with his colleagues once Parliament resumed next month, he said.
‘‘In defence, I imagine Air New Zealand may say the cost of fuel has risen [but] we need to be absolutely confident that the disappearance of the Aussie competitor isn’t providing fresh opportunity for gouging.’’
Air New Zealand had a bigger cheque book, but he had a larger megaphone, he said.
He had sought to restructure regional air travel, he said.
‘‘Unfortunately, that body of work I think is still with officials . . . It may very well be something that we have to campaign on.’’
The airline announced yesterday that it had sold more than
1 million domestic fares for under
$50 since reviewing its domestic prices a year ago.
About 600,000 of those fares had been sold on regional routes, the airline said.
Jones said Air New Zealand’s introduction of a ‘‘whole host’’ of
$50 fares had been in response to his earlier concerns.
Justin Tighe-Umbers, executive director of the Board of Airline Representatives of New Zealand, said the fact airlines were pulling out or reducing capacity on routes followed a slowdown in local passengers in the second half of last year.
At the same time, airlines faced more in red tape and jet fuel costs.