Concern grows over Air NZ's potential price hikes, less flights next year

Tickets for some Air New Zealand flights could be more expensive next year, with the airline running fewer flights on some domestic routes.

Authorities and businesses in Gisborne and Rotorua fear the changes, though temporary, could stunt their growth.

Aviation Industry Association chief executive Simon Wallace attributed the need for cuts to the changing business landscape.

"When it comes to business travel and certainly when it comes to business travel at a domestic level, we've got Zoom, we've got Teams," he said.

"I think of my own personal circumstances. I'm not travelling as much within New Zealand so the way that business has done has certainly changed."

That reduced demand was forcing a shake-up, and it was not just Air New Zealand.

"We haven't just seen Air New Zealand do it actually, we've seen some of the other smaller airlines like Sounds Air, for example, having to look at the way they're operating their services and where they're operating services," Wallace explained.

Gisborne Mayor Rehette Stoltz told Morning Report it was bad news for her community.

"For an isolated region like us, that connectivity is so, so very important," she said.

"We do have some local players like GisAir (Air Gisborne) or Air Rotorua who can fill some of those gaps but the vast majority of people rely on Air New Zealand to connect them not only to the rest of the country but also line them up with some international site."

Gisborne Chamber of Commerce President Ashley Fisher agreed, saying the cuts went against what the region was trying to achieve.

"We are trying to grow tourism to be a big part of our economy for the future and without flights and connections to the region that's more difficult," he said.

"They need to understand that if you want tourism to be a part of the future of economies for New Zealand then we need to be able to grow those networks not reduce them."

Rotorua Mayor Tania Tapsell said the changes were restrictive.

"For us the main loss is the Wellington flights, the early morning one. For our business community that means we'll now have to stay overnight," she said.

"That could be good for the accommodation and sector in Wellington, [but] not very good for our productivity or needing to be at home with the family."

Marlborough District mayor Nadine Taylor was less concerned.

"I think we have a few unique regional advantages here in Marlborough. We also have Sounds Air which does regular flights between Picton and Wellington and Blenheim and then of course we're also connected with the Interislander ferries," she said.

With fewer flights and fewer seats Air New Zealand's Domestic Manager Scott Carr admitted prices could increase.

"The average prices may go up. There may be a marginal change in the number of seats available at the bottom of the fare structures," he told Morning Report.

"The fact is the flight loads are lighter than normal, so our intent certainly is to try and carry the same number of passengers over a reduced number of flights."

He said the cuts were necessary due to low demand, but Ashley Fisher was doubtful.

"They are citing weaker demand as a reason for why they're cutting flights. I would question that because anecdotal evidence from the airport suggests that demand is increasing due to the fact that the car park is always full and there's an overflow area that's always full," he said.

Air New Zealand said the reductions were only temporary, running from February to June next year.

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