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Heather du Plessis-Allan: Air New Zealand are milking kiwis

Author
Heather du Plessis-Allan ,
Publish Date
Fri, 25 Aug 2023, 5:54pm

Heather du Plessis-Allan: Air New Zealand are milking kiwis

Author
Heather du Plessis-Allan ,
Publish Date
Fri, 25 Aug 2023, 5:54pm

Let's听be brutal about what we all suspect is going on with Air NZ.

And听that听is that听Air听NZ听managed to turn its business听around听yesterday and post a profit for the first time in three years.听

By milking kiwis.听

Not听the听rest of the world,听just us.听

We're听all aware by now that听they鈥檝e听jacked up the听price听on听their听domestic routes.

It might surprise you though to know that they鈥檙e pretty competitive on some the international routes where there鈥檚 lots of competition.

For example, try flying next week, let鈥檚 say Auckland to Wellington. Their cheapest flights on Thursday are double what Jetstar is charging.听

But try booking an international flight on that day, direct flight to Singapore. Air NZ is the cheapest ticket.听

Auckland Uni economics professor Robert MacCuloch鈥檚 on this. He wanted to know how much of their billion dollar turn around yesterday was off the back off domestic routes compared to international routes.听

He听couldn鈥檛 find it anywhere in the end of year accounts.听

For听Qantas听he found it pretty听easily听in last year鈥檚听annual report,听page 19, but Air听NZ鈥檚听was nowhere to be听found.听

Judging by the texts听yesterday,听lots of people are clearly getting grumpy at Air听NZ听for this, and I don鈥檛 blame you. Especially if you live in a region where Air NZ is the only option.听

But the number of听people听I've听spoken听to who complain about Air听NZ听and听don鈥檛听fly听anything听else is听extraordinary. 听

Someone听today听was complaining听about $1400 for two adults听to听Nelson this past summer, I said why not fly听Jetstar听to听Wellington听then Sounds Air to Nelson?听

Nah听can鈥檛听be听bothered... too听inconvenient.听

In that case, you听can鈥檛听complain.听

If听you鈥檙e still听flying them and you听don鈥檛 like it,听don鈥檛听fly them听anymore. Fly听someone else or drive.听

Air听NZ听will be听pushing听it with us as far as they can to make as much money as they can, and听you can鈥檛听blame them.听

They鈥檙e听a business听answerable听to their shareholders.听

We might be grumpy but they听clearly听haven鈥檛听pushed it too far yet听because听we鈥檙e听still flying.听

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