Air New Zealand Further Reduces Trans-Tasman Services

Air New Zealand has recently confirmed that trans-Tasman services will be reduced below current levels due to lessening demand in the current difficult economic climate. Current weekly services out of Dunedin include two services to Sydney and two to Brisbane. Only days after announcing the suspension of the sole remaining trans-Tasman service out of Hamilton, Air New Zealand has decided to suspend both Dunedin–Sydney services from 16 April–24 October 2009, and reduce the Brisbane service during May and June to one service per week. Twice-weekly services are scheduled to be restored in July, after the seasonal lull is expected to improve.

Air New Zealand’s General Manager Tasman Pacific Airline, Glen Sowry, said that the over-supply of trans-Tasman capacity, combined with softening winter demand, made the continuation of the current level of service unfeasible, but after talks with Dunedin Airport and tourism officials, he believed that there should be sufficient demand from both sides of the Tasman to sustain Dunedin-based services in the longer term.

Illustrating the difficulties faced by the airline on the Dunedin services, Mr Sowry pointed out that the load factor had averaged only 55.4% over the preceding nine months and flights on the Dunedin–Sydney route had carried 4,000 empty seats in the last three months alone, the equivalent of 25 empty A320 flights. He said that the yield on the service was also poor, with sale and Smart Saver fares making up 94% of the fares sold and a much lower percentage of business travel than on comparable routes.