Freedom Air to expand beyond cheap fares

By CHRIS DANIELS

Air New Zealand's budget arm, Freedom Air, has signed a deal with two travel companies, designed to widen its market presence beyond just cheap airfares.

A new plane is scheduled to join its fleet of four aircraft in December and next year three of the five planes are likely to be replaced with new Airbus aircraft.

The House of Travel chain of travel agents has become Freedom's "retail partner", meaning it will conduct joint marketing and advertising campaigns.

Freedom sales and marketing manager Rachel Gardiner said the airline had traditionally been good at its core business - selling airfares.

Holidays Plus will now provide what Freedom calls "online travel products" and it will offer what is described as "an on-line travel solution that has been designed to work seamlessly with the Freedom Air website".

Freedom Air incurred the wrath of the travel industry in 1999 when it stopped paying a $25 fee to travel agents whose customers booked a flight with it. Gardiner said Freedom had "not had a strong relationship with agents" since.

When the airline stopped paying fees to agents, the House of Travel was "in here the next day" looking for ways to develop a relationship. She said the new deals allowed Freedom to "add value to the customer experience" through preferred partners.

Under the new arrangement, customers who book with Freedom on the phone, then ask for information on rental cars, accommodation, or other travel products, will be referred on to the House of Travel.

The House of Travel will also develop and promote holiday deals where flights will be offered by Freedom.

Accommodation and rental cars are currently offered by Holidays Plus through the Freedom website, but there is a low level of automation. This, along with more virtual tours and more products, will be offered from mid-August, said Gardiner.