Humble pie on Air NZ menu

By CHRIS DANIELS aviation writer

Less than two weeks after unveiling its "Tasman Express" low-cost service, Air New Zealand has restored some frills for business customers.

Business-class travellers, unhappy about food in cardboard boxes and coffee in "takeaway-style" cups, have pushed the airline back to crockery and cutlery.

Airline chief executive Ralph Norris yesterday said the airline had made "a screw-up" over food for business class customers.

The problem had been fixed, he said, adding: "the good thing about Air NZ is that if we do screw up, we'll admit it and fix it."

David Burns, general manager of Flight Centre's corporate travel division, said his clients reacted immediately to the Air NZ change, some saying they would change airlines.

Business travellers had begun using Air NZ's Tasman Express serviceon November 1, and were surprised by the degree of change.

""The expectations these clients had were not being fulfilled."

Air NZ's reversal was good.

"It was a positive sign from the airline that it had listened to the passengers and responded so quickly," Burns said.

Business travellers paid about $1500 for a return flight to Australia. By comparison, the cheapest fares were less than $400.

Qantas and Emirates, which offered full business class service, charged a similar price, putting pressure on Air NZ to improve its product, or risk losing customers.

Airline spokesman Glen Sowry said the cost of reintroducing the cutlery and crockery was significant, but essential to meet the expectations of business class customers.

The eight business-class seats were pulled out of Air NZ's Boeing 737 aircraft when it rolled out the "express model" on domestic flights last year so that all passengers could be fed the same meals and given the same service.

Air NZ decided it could not afford to lose its premium-price Tasman customers and the Airbus A320 planes bought for these routes have eight business-class seats.

* Air NZ's decision on whether to appeal against the Commerce Commission's rejection of its bid to form an alliance with Qantas should be made this week.

Norris yesterday said the board of directors would receive a lawyer's recommendation and his own personal recommendation. The airline has until next Thursday to appeal to the High Court.

Meanwhile Qantas is taking an appeal on the matter to the Australian Federal Competition Tribunal.