Freedom leaves gap in skies

By JO-MARIE BROWN

Air New Zealand's budget airline, Freedom Air, flew domestic routes for the last time yesterday, leaving a gap of almost six weeks before the national carrier begins its own no-frills service.

Freedom will now offer transtasman flights only, but domestic travellers concerned that no cheap fares will be available until the Air NZ Express starts on November 1 need not worry.

Qantas and Origin Pacific will continue to offer their cheapest deals, both airlines matching the $89 one-way fare plus taxes between Auckland and Wellington previously offered by Freedom Air.

Air NZ will maintain its 21-day advanced purchase fare of $199 return between the two centres before Air NZ Express and Qantas drop prices to $59 one way after November 1.

Air NZ spokesman Mark Champion said Freedom Air had to finish domestic services yesterday so maintenance could be carried out on its aircraft before they began international flights.

Freedom accounted for only 6.7 per cent of seats previously available on the domestic network so its withdrawal would not have a significant impact.

A 5 1/2 week gap would occur because a lot of work still needed to be done on launching Air NZ Express, such as removing the business-class seats from a dozen or so 737 aircraft in preparation for the single-class service.

Travel agencies the Herald spoke to yesterday said they were surprised Air NZ had left a gap between the demise of Freedom Air's domestic service and the start of its own budget option.

House of Travel's commercial director, Tony Moffatt, believed it would be more expensive to fly during October.

"There will be slightly higher fares because we're going back to the old structure and no value-based airline in the middle."

But Mr Moffatt said travel agents would still be able to offer a range of decent fares from Qantas, Origin Pacific and Air NZ.

Flight Centre general manager David Burns said that below-average flight bookings for next month suggested many consumers were waiting until after November 1 to fly.

Bookings in the leisure sector were down 10-20 per cent so far across all airlines for next month despite part of the school holidays and Labour Weekend falling in October, he said.

"But that stands to reason when you go from a pricing structure that was quite high to one that is very low.

"If people were thinking of going to Wellington to visit someone for the weekend they'll have put it off till November now."

Mr Champion confirmed there had been "some softening" in Air NZ bookings for provincial routes.