Airlines slug it out to lure transtasman travellers

Air travellers are beginning to reap the fruits of an airfares war as Air NZ's low-cost Freedom Air bids to undercut the fares of newcomer Pacific Blue.

The local wing of Australian Virgin Blue is marking its foray into the Auckland market by selling $89 one-way fares to Brisbane and the Gold Coast - plus taxes and charges from $40.

The offer on sale now is for travel from May 12 until June 30 and the airline says thousands of seats will be available.

Pacific Blue will launch its first flights from Auckland on May 12 to two Australian destinations - Brisbane and the Gold Coast - after cutting some of its Wellington flights.

Freedom, which competes in the same low-fare, leisure end of the market, says it will undercut any rival by at least $10 each way.

Freedom yesterday said it would sell its tickets for $79, plus $41 in charges for the Gold Coast route. The Auckland-Brisbane leg would cost an extra $44.

General manager Stephen Jones said the airline had more seats available at these prices than anyone else, so was promising it would not be undercut by a rival.

Aucklanders will hope the Gold Coast and Brisbane routes are merely the first shots in the war because routes to the Pacific Islands are yet to be included in the Pacific Blue-Freedom Air fight.

Neither Pacific Blue nor Freedom fly the main business travel routes: Auckland-Sydney or Auckland-Melbourne.

In Freedom's case this would run the risk of cannibalising high-value passengers from its parent, Air New Zealand.

House of Travel retail director Brent Thomas said consumers should make their plans quickly to take advantage of the fares.