Adverts hit turbulence

Air New Zealand and Qantas will both be prosecuted by the Commerce Commission for misleading advertising of airfares.

The two carriers, which last week announced plans for an alliance, have fallen foul of the commission over alleged breaches of the Fair Trading Act.

Air New Zealand spokeswoman Rosie Flay said the airline would defend the action and Qantas spokeswoman Melissa Thomson said its had not yet received a statement of claim detailing the advertisement concerned.

"However, we believe all advertising has complied with the Fair Trading Act," she said.

Commission director of fair trading Deborah Battell said papers would be filed with the District Court within two weeks.

She said the commission had been concerned for some time about the travel industry misrepresenting airfares and separating out insurance and other costs.

The commission wanted airlines to start advertising prices that included all additional costs they required the customer to pay, instead of itemising them in the fine print.

On domestic jet services, security and Civil Aviation Authority levies, and an airline insurance premium, adds $9.80 to the price of a one-way ticket.

"Consumers are entitled to be told one price. The advertised price should be the price they will pay for their tickets and should not have additional taxes, levies and costs disclosed only in small print or not at all," Ms Battell said.

Air New Zealand's budget arm, Freedom Air, last month pleaded guilty to eight breaches of the Fair Trading Act and was fined $9000 plus costs.

- NZPA