Competition sees trans-Tasman fares fly low
A weekend trip to Australia is becoming more viable, reports John Anthony.
Fierce airline competition, more seats and fuel-efficient aircraft are bringing airfares down for trans-Tasman flyers.
Forsyth Barr head of research Andy Bowley said greater competition and increased capacity from airlines, in particular from low-cost carrier Jetstar and international airlines including Emirates and China Airlines, were helping keep trans-Tasman fares competitive.
‘‘Pricing has become increasingly favourable to consumers,’’ Bowley said.
Statistics New Zealand figures from the past 14 years show trans-Tasman and Pacific Island airfares were lowest in June 2009 when global passenger numbers fell sharply and airlines around the world grounded aircraft to minimise losses.
Travel agency Flight Centre told the Sydney Morning Herald that return fares between Auckland and Australia’s east coast were selling for as little as A$330 (NZ$365), including taxes.
Flight Centre said weakening demand for international travel since Australia’s federal budget in May had forced airlines to discount fares to entice travellers on routes to New Zealand and Asia.
Air New Zealand filled 78 per cent of its seats on the route in June, Qantas 61 per cent, Emirates 56 per cent, Jetstar 72 per cent and Virgin 74 per cent.
The trans-Tasman market has become a two-way fight between two allied airline groups consisting of Air New Zealand and Virgin Australia, and Qantas and Emirates.
Between them, these groups carry about 97 per cent of passenger traffic between Australia and New Zealand.
House of Travel commercial director Brent Thomas said the trans-Tasman was the most competitive route to New Zealand resulting in lower fares.
‘‘When you’ve got multiple carriers and choices, pricing will remain competitive.’’
Travellers regarded a trip to Australia as a domestic flight and an increasing number were taking more than one holiday across the Tasman, often for extended weekends, he said.
‘‘They’ve certainly got not just good pricing but a good choice in terms of when they can fly and out of which airports.’’
That is set to increase, with Jetstar announcing it would start flying three times a week from Wellington to the Gold Coast, and also from Queenstown to the Gold Coast from early December.
Virgin Australia also plans to add business class on routes to Wellington, Queenstown, Christchurch and Dunedin.