Air New Zealand ditches seat only fares for Perth and mid-haul services

Air New Zealand is doing away with seat only fare options for services to Western Australia and two other mid-haul routes.

From Thursday 20 October, passengers to Perth and Tahiti will no longer be able to opt in for the budget seat and 7kg carry on luggage option.

Instead the economy fare options will be streamlined to "The Works", including meal and check in luggage allowance.

From the end of the month Honolulu will no longer offer a carry-on only option, to "bring it inline" with the other North American destinations - offering only Economy, Premium Economy and Business cabin classes.

"The majority of our customers on these services already purchase [fares with a meal and luggage allowance]," says Jeremy O'Brien the airline's GM of short haul.

A spokesperson from Air New Zealand said 'Seat' only fares represented around 5 per cent of tickets from Perth. On Honolulu this is closer to 4 per cent flying carry-on only.

O'Brien says the decision is driven by customer preference and the launch of a new food and beverage offering in November gave the airline a chance to review the under-used seat-only product.

"It's not about regulation but reflective of what customers are looking for. Particularly on flights over 5 hours," he said.

For passengers who have already bought seat-only fares to these destinations - prior to 20 October for Perth and Tahiti or 30 October for Honolulu - they will be given a full meal and inflight entertainment offering for the service.

Original baggage allowance will apply to existing tickets.

"With our new economy product we look to be competitive in the market. Fares will remain in line with current rates," says O'Brien.

Why is Air New Zealand is getting rid of seat only fares on these routes? Photo / File

There is currently a $50 to $80 difference in fare between the base 'seat' only option and the top 'The Works' economy package, depending on your route.

Streamlining the economy cabin classes would also make Air New Zealand's short-haul business a lot simpler.

"It does enable our crew and operations to benefit from the standardised economy options," says O'Brien.

There is a huge potential fare difference between all 246 economy passengers flying to Perth with either The Works or Seat only package. Although the airline says the number of passengers opting to fly these routes with the basic seat only package remains low.

Seat and carry-on only fare options will remain on offer for all other short haul and transtasman routes.