KEY POINTS:
The airfare war is heating up with Air New Zealand to offer 2000 seats for $10 between New Zealand destinations today.
The seats will be sold in batches throughout the day.
Another mix of 2000 seats around the domestic network for the same price will be offered through grabaseat tomorrow.
The $10 sale is the latest shot in the intensifying airfare war which has seen transtasman return prices dip below $300. Airlines put seats on sale on selected routes at a late stage to fill lightly booked planes.
Air NZ chief executive Rob Fyfe said this week: "We take a philosophy it's better to fill up your aircraft rather than to fly around part empty aircraft."
While the airline says domestic demand was strong over the holiday period through its website, loads have been lighter compared with a year ago.
Mr Fyfe said in the next two to three years airlines were going to be working hard to fill their aircraft.
"Consumers will benefit from that. That's a good thing for our business long term even though we may lose some short term profit."
