Pacific Blue’s flying start in New Zealand
A report in The Dominion Post in New Zeland says that Pacific Blue will launch its domestic services in New Zealand two days earlier than scheduled, on November 12, and will sell most seats for its first days at $9 each, adding fuel to an already heated price war.
The Australian-owned budget airline announced in August that it would fly two 180-seat Boeing 737-800 jets between Auckland, Wellington and Christchurch in competition with Air New Zealand and Qantas.
Pacific Blue spokesman Phil Boeyen said preparations for the domestic services had gone more smoothly than expected, allowing the earlier start.
The $9 one-way fares, which go on sale today, are the latest in a series of promotional fares as the Virgin Blue offshoot looks to quickly build market share.
Pacific Blue’s opening shot, in an increasingly aggressive price war, was to sell 70,000 seats at $39, undercutting standard fares by up to $60.
When Qantas said it would reinstate its Wellington-to-Christchurch service, abandoned in March, Pacific Blue responded with a $30 special on the route.
Air New Zealand have completed a 26-day sale campaign that offered maximum fares of $26 from a different destination each day.
Pacific Blue’s arrival immediately slashed all standard fares between the three main centres by 30 per cent to between $59 and $79 as Air New Zealand and Qantas were forced to protect their market share.The increased competition has also prompted the return of more frills on flights.
Air New Zealand provides more than five times as many flights a day between the main centres as Pacific Blue. Its fleet of 16 Boeing 737s also compares with Qantas’ four aircraft.
Yesterday Air New Zealand said it carried 6.3 per cent more passengers in September than it did for September last year. The Rugby World Cup had helped boost passenger numbers on long-distance flights by more than 22 per cent over the same period.
A Report by The Mole and The Dominon Post
John Alwyn-Jones
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