Fares battle: Air NZ has responded

Press, 1 February 1986, Page 9

Fares battle: Air NZ has responded

PA Auckland Air New Zealand has responded to the fares battle started on the route to Britain by Qantas by offering a $246 reduction on a return epic fare to London, plus savings on ground arrangements. The $2740 fare from Auckland is available for travel in May, June and , July, provided it is bought : before February 28. The' fare, which British Airways also is offering, does i not approach the $2200 Qantas net fare, to Which the travel agents’ price must be added. : However, agents said yesterday that the savings being offered by Air New Zealand on sightseeing, accommodation and internal travel overseas represented good value. Under one holiday package savings of $291 are offered and on another $251. British Airways is offering its own savings on ground arrangements. The manager of one big

travel agency chain wished Air New Zealand well with its attempt to return agents to their traditional relationship with airlines. Under this arrangement airlines set the fare levels and agents get a commission on what they sell.

However, the agency manager said he feared the Air New Zealand move might not be sufficiently successful to get the market back on a more stable footing. “Net fares have been in too long, they have made too much of a market impact," he said. He believed many consumers would still look “at the bottom line” — the price they can travel by air. Another agency chain manager said that if people were interested only in the cost of getting to London they would travel with Qantas. However, if they wanted a travel package they might well use Air New Zealand or British Airways.