Air NZ plans regional changes

Air New Zealand is believed to be planning big changes to its regional fare structure, including deep discounts in return for an annual fee to attract more business fliers as the economy recovers.

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Leisure travellers would also benefit through doubling the number of super-cheap seats to the provinces via the airline's grab-a-seat website. This would make an extra 50,000 seats a year available from as low as $1 each.

Senior management has held a series of workshops nationwide involving about 5000 key customers, businesses and local politicians to canvass options.

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It is understood that central to the plan is an annual discount card, which would be sold for between $1000 and $1500 in return for a discount of between 20 per cent and 35 per cent on any regional fare.

The discount card would also include Koru lounge membership, worth about $600, and all fares would continue to earn airpoints. To improve the value of the Koru membership wholesale lingerie lounges would be added to some smaller airports, and existing lounges upgraded.

The changes were aimed at regular business travellers. A one year nationwide trial of the system was expected to be announced next month and launched before September.

House of Travel retail director Brent Thomas said the initiative was surprising given that Air New Zealand held a monopoly on the regional network. The airline could also be taking pre- emptive action in anticipation of competition.

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