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Monday, October 19, 2009

New domestic fare structure at Air NZ - part 2

We've crunched the numbers for over 600 domestic routes and are almost ready to post information on the routes with the best decreases in lead-in rates. But first, here is a high level overview of the changes in the lowest (internet only) smart saver fares.
  1. Not all lead-in fares went down. Some stayed the same and some have increased.
  2. Lead-in fares between the main cities are unchanged. These are the routes which Air New Zealand previously reduced fares on, in response to Pacific Blue and Jetstar.
  3. The largest decreases are on routes most vulnerable to expansion by a competitor - ie routes between the main cities and secondary cities (generally flown by Air NZ with ATR or Q300 aircraft).
  4. Most rate decreases are small - typically $10. Thus there are a lot of fare decreases which are too small to report on.

Please check back later today for more details, including a couple of surprises.

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