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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 be brutal about what we all suspect is going on with Air NZ.

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

By milking kiwis. 

Not the rest of the world, just us. 

We're all aware by now that they’ve jacked up the price on their domestic routes.

It might surprise you though to know that they’re pretty competitive on some the international routes where there’s lots of competition.

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

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

Auckland Uni economics professor Robert MacCuloch’s 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. 

He couldn’t find it anywhere in the end of year accounts.  

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

Judging by the texts yesterday, lots of people are clearly getting grumpy at Air NZ for this, and I don’t blame you. Especially if you live in a region where Air NZ is the only option. 

But the number of people I've spoken to who complain about Air NZ and don’t fly anything else is extraordinary.  

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

Nah can’t be bothered... too inconvenient. 

In that case, you can’t complain. 

If you’re still flying them and you don’t like it, don’t fly them anymore. Fly someone else or drive. 

Air NZ will be pushing it with us as far as they can to make as much money as they can, and you can’t blame them. 

They’re a business answerable to their shareholders. 

We might be grumpy but they clearly haven’t pushed it too far yet because we’re still flying. 

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