KEY POINTS:
Air New Zealand sparked an online buying frenzy yesterday when it advertised its cheapest domestic fares for $1 - the price of one of its inflight biscuits.
Special offers on grabaseat.co.nz included each-way flights from Auckland to Wellington and Auckland to Dunedin.
But customers had to be quick - some routes sold out within minutes of being posted on the airline's website with no warning.
The most popular route, from Auckland to Wellington, sold out within 20 minutes and other routes took around an hour to sell out.
The flights were offered to celebrate the first anniversary of the airline's discounted online airfare website grabaseat, which offers a range of low domestic and international fares. Prices include Hamilton-Palmerston North for $29 one way and Auckland-Los Angeles for $498 return.
They were advertised on the website at various times between midnight on Monday and 6.30pm last night.
An Air New Zealand spokeswoman said yesterday at least 500 discounted seats had been offered. She would not say if the offer would be repeated.
"At this stage it was a one-off celebrating the first anniversary. It's the lowest domestic fare we have ever offered."
She declined to say how much the discount cost the airline in terms of subsidies and what resources were put into the promotion.
"The quickest sellout was 20 minutes from Auckland to Wellington. The website slowed down because of the number of hits but it was still working. The frenzy wasn't surprising because it was such an amazing offer.
"Customers jumped in and got what they wanted."
Air New Zealand general manager (internet) Nicki Garraway said the response to grabaseat had been exceptional. The average fare for domestic routes was about $50.
A Flight Centre spokeswoman said yesterday it wasn't clear if this was a sign of things to come for New Zealand.
"The recent discounting of airfares, including the $1 fares, is great for consumers and great for stimulating interest in air travel," she said.
Peter Harbison, chairman of the Centre for Asia Pacific Aviation, said $1 flights were part of a global phenomenon.
"It's just one of those attention-grabbing happy birthday fares where they are picking a few selected routes where it's not going to do too much harm to their overall yield, so I wouldn't see anything sort of dramatic in the fact they've done that."
Discounts such as this would probably pull in customers who might not usually travel with Air New Zealand.
"Generally speaking with one-way fares, you buy one one-way, but your chances of getting one back are pretty remote, particularly when they are $1 fares because you've got a bit of competition there."
Qantas was last night advertising on its website flights between Auckland and Wellington for $59 each way and flights between Auckland and Christchurch for $69 each way.
