Qantas attacks Air New Zealand's soft underbelly

By DANIEL RIORDAN

Qantas is poised to boost its transtasman services to Christchurch, turning up the heat on Air New Zealand and hinting of bigger battles ahead.

The Australian carrier is expected to announce this week that it is adding four weekly return flights to Australia - two each to Sydney and Melbourne - from July.

The increases, using wide-bodied Boeing 767 planes, will be especially welcome to South Island exporters hurt by Air NZ's replacement of its 767s with smaller 737s at the start of last summer, almost halving cargo capacity.

Qantas will not confirm or deny the moves - spokeswoman Melissa Thomson said an announcement was planned this week - but Canterbury business leaders say Qantas has already told them of the changes.

Canterbury Manufacturers' Association chief executive John Walley welcomed the move, saying Qantas had listened to South Island businesses as well as responding to passenger traffic increases across the Tasman.

When Air NZ downscaled its wide-body services, Walley was scathing, calling it "probably the worst thing to happen to manufacturing in Christchurch for some time".

Air NZ customers wanting to send containers or packaged loads heavier than 35kg to Australia were forced to send them through Auckland or switch to Qantas flights.

Christchurch is estimated to have lost 3000 seats a week across the Tasman in the past six months. Qantas' move, as well as pleasing exporters, will redress that loss by between 1600 and 1900 seats.

The initiative comes as Air NZ launches a charm offensive in Christchurch, tomorrow holding a rare board meeting in the Garden City, after managing director Ralph Norris leads a meet-and-greet session with local stakeholders and customers tonight.

As part of that offensive, Air NZ said last week that it would increase its domestic capacity in and out of Christchurch by about 5 per cent over the rest of the year.

Former Air NZ shareholder Singapore Airlines is also joining the South Island fray.

Singapore Airlines, which last month ended a revenue-sharing agreement with Air NZ, last week indicated it would increase its Singapore-Christchurch flights from three to five a week from September, responding to Air NZ's decision to withdraw from the route next month.

Darryll Park, chief executive of Christchurch and Canterbury Marketing and a former Air NZ South Island manager, welcomed Qantas' decision, saying Air NZ had frustrated southern business and tourist concerns by withdrawing services, and had a lot of ground to make up.

"We're asking them to keep us in the picture - just don't withdraw services."

In an interview with the Christchurch Press published on Saturday - timed to coincide with Air NZ's southern push - Norris said the airline was "very much committed" to the South Island.

Air NZ is running focus groups, asking what people want and what they are prepared to pay. Price is said to be the top priority, unsurprisingly.

Qantas, which flies 737s on main domestic routes and has been increasing its codeshare routes with Origin Pacific, is expected to lift its domestic presence by the middle of the year.

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