Air New Zealand chief executive Greg Foran explains why fares are going up. Video / Supplied
Editorial
EDITORIAL:
Revelations Air New Zealand has pushed up domestic airfares by an average of 20 per cent come as a consumer group has launched a timely campaign to get a better deal for passengers.
The airline has a stranglehold on the domestic market and blames the steep increase in fareson surging costs across its business. The scale of the rises will come as a surprise to many flyers who are getting back on planes for the first time as the impact of the pandemic eases.
New Zealand taxpayers own 52 per cent of Air NZ, a stake that has deepened as the airline has received more than $2 billion of direct or indirect support during the past two and a half years. Kiwis have a very strong interest in how the national carrier is performing.
Other airlines have also taken advantage of strong pent-up demand and reduced competition to raise fares on international routes and, although there are early signs of consumer resistance, flying, for now, is far more expensive than in 2019.
So, as aviation climbs out of the pandemic, why not take the opportunity to revamp the flying experience?
Consumer NZ has long urged stronger protections for passengers who have had flights disrupted. In Europe, airlines must refund passengers and provide accommodation and compensation up to $1000 for flight cancellations in almost every case.
The campaign to replicate those protections has largely fallen on deaf ears among MPs considering changes to aviation laws in New Zealand.
Bad weather caused flight disruption during the July school holidays. Photo / Marty Melville
The Civil Aviation Act requires an airline to compensate ticket-holders if a domestic flight is cancelled or delayed for reasons within its control - commonly staffing issues or technical problems. The airline doesn't have to compensate for delays caused by uncontrollable factors, such as the weather.
Consumer says passengers shoulder a disproportionate share of the risk of disruption.
Now the watchdog is pushing hard to have the rights passengers do enjoy - however limited - to be spelled out more clearly.
In a petition launched yesterday, the watchdog is insisting airlines should inform passengers about their rights when a flight is delayed or cancelled.
Currently, airlines are not required to educate passengers of their rights.
"It's time the airlines lifted their game," Consumer NZ chief executive Jon Duffy says.
He argues that airlines aren't always upfront about why a flight has been disrupted, which makes it difficult to figure out what is owed to passengers.
During the July school holidays, domestic disruption caused by weather and airline staff absences led to cancellations and delays. Many travellers are understandably fed up.
Air New Zealand, at least, appears to be listening.
The airline's chief customer and sales officer Leanne Geraghty says it has held ''constructive dialogue'' with Consumer NZ about how to improve its response to domestic flight disruptions to make customers' options as clear as possible.
