Air New Zealand will reduce seat capacity on the Tasman by 11 percent from April next year.
Group General Manager Shorthaul Airline Norm Thompson says there is insufficient demand to justify retaining capacity at the same level as the previous April to October period (known as the Northern Summer schedule). Compared with the same period the previous year the number of seats available between Wellington and Australia will fall by 15%, Dunedin 28%, Palmerston North 15% and Christchurch 7% from April 2007.
"The Tasman is one of the most brutal aviation markets in the world and all carriers struggle to make an adequate return on their investment. Unfortunately, not even the low airfares generated by significant excess capacity and competition have driven enough customer demand from these four centres to maintain the status quo schedule on a year-on-year basis. For example, Air New Zealand load factors out of Wellington over the low demand season averaged only around 63%, which is commercially unsustainable," Mr Thompson says.
The schedule changes follow:
Wellington
Air New Zealand services to Sydney reduce from 12 to 10 per week, to Melbourne from 7 to 5 per week and to Brisbane from 7 to 6 per week.
Dunedin
Freedom services to Sydney reduce from 3 to 2 per week and the 1 service per week to Gold Coast is withdrawn.
Palmerston North
Freedom services to Brisbane reduce from 4 to 3 per week.
Christchurch
Air New Zealand services to Sydney reduce from 14 to 13 per week.
Freedom services to Gold Coast reduce from 4 to 3 per week.
Auckland
No change in frequency but seat capacity falls by 11% due to use of smaller aircraft to Sydney.
Mr Thompson says despite the reduced capacity between April and October next year, Air New Zealand remains committed to the Tasman.
"The Tasman represents 20 percent of all Air New Zealand flying. We still have more capacity on the route than any competitor and we are determined to grow demand but not at the expense of destroying shareholder value," he says.
ENDS
Issued by Air New Zealand Public Affairs Ph: 09 336 2761
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