Jetstar's planned Auckland-Singapore service is set to slash fares on the route and could mark the start of increased no-frills long-haul flying out of NZ.

Low-cost airline Jetstar is launching a new daily direct service between Auckland and Singapore in time for the Rugby World Cup.

Virgin Blue is reviewing its entire airline network, including its New Zealand domestic operations that are rumoured to be losing money.

NZ travellers may find themselves out of pocket if ash from the Icelandic volcano causes authorities to close airspace again.

Direct flights from Auckland to Houston as often as five times a week are being planned from November 2011.

Air New Zealand is increasing its international capacity by 4.9 per cent and domestic capacity by 3.8 per cent as it starts to see a recovery in air travel.

Claims from travelers disrupted by the Iceland volcano have topped half a million dollars, one of NZ's leading travel insurance companies says.

Air New Zealand climbed from eighth-best in the world last year's to fifth in this year's annual world airline awards.

Air NZ has taken an unusual approach as it defends itself from claims an alliance with Virgin will mean an inevitable downgrade of its services.

A partnership between Air New Zealand and Australian airline Virgin Blue that could result in up to 80 more flights across the Tasman each week is unlikely to deliver cheaper fares, aviation experts say.

A proposed Tasman alliance between rivals Air New Zealand and Virgin Blue has both companies promising lower fares.