Air NZ: Domestic and international fares to drop
Flying is about to get substantially cheaper, the head of Air NZ says. Lower fuel costs, an expanded fleet and increased competition from the likes of Jetstar would all pull down domestic and international prices, the airline's CE Christopher Luxon said. Although he said prices were likely to drop "substantially", Luxon said he was unable to put a figure on how much airfares could fall. "The combination of fuel, supply and competition will ultimately determine pressure on pricing. Clearly, when you fly internationally fuel becomes a bigger variable than it does in domestic New Zealand. When you fly for 12 to 14 hours, fuel can be 25% to 30% of your actual cost base." Air NZ had a successful year last year, making NZ$474m profit, before tax and paid $89m in dividends to the govt. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-01-27/star/air-nz-domestic-and-international-fares-to-drop
https://portal.staralliance.com/cms/logo.png
Air NZ: Domestic and international fares to drop
Flying is about to get substantially cheaper, the head of Air NZ says. Lower fuel costs, an expanded fleet and increased competition from the likes of Jetstar would all pull down domestic and international prices, the airline's CE Christopher Luxon said. Although he said prices were likely to drop "substantially", Luxon said he was unable to put a figure on how much airfares could fall. "The combination of fuel, supply and competition will ultimately determine pressure on pricing. Clearly, when you fly internationally fuel becomes a bigger variable than it does in domestic New Zealand. When you fly for 12 to 14 hours, fuel can be 25% to 30% of your actual cost base." Air NZ had a successful year last year, making NZ$474m profit, before tax and paid $89m in dividends to the govt. <br/>
