Transtasman airline discount battle heats up

By ANNE BESTON

Another round of cut-price air travel is on offer between Australia and New Zealand with Freedom Air saying its $129 one-way offer is its best transtasman fare yet.

The airline had offered lower dual fares on a "buy one, get one free" basis, said spokesman Mark Street, but the $129 fare up for sale was the lowest yet offered from some cities.

Mr Street, also spokesman for Air New Zealand, said that airline, which owns Freedom Air, had no plans to match the deal at this stage.

A Qantas spokeswoman said she did not know whether the airline would drop its prices.

Freedom Air's special offer closes at 4pm on Wednesday and is available only through the company's website. The fares are available from July 26 to September 16.

The cheap fares are available for all Freedom Air destinations in Australia, including Sydney, Melbourne, the Gold Coast and Brisbane, flying from Auckland, Hamilton, Palmerston North, Wellington and Dunedin.

They exclude insurance and tax surcharges, which can raise the total cost to around $160 one-way.

Pacific Blue, which offered a fare of $99 when it launched in New Zealand in February, promised it would respond.

Chief executive Tony Marks said: "The long and the short of it is that we will match or better anything Freedom is doing."

The latest cut follows a round of fare cutting a fortnight ago that centred on Christchurch, the scene of intense competition following the arrival of newcomers Pacific Blue and Emirates.

Air New Zealand offered fares of $119 from Christchurch to Sydney, Melbourne and Brisbane for a limited time.

Qantas followed suit, matching Air New Zealand's offer. Then Air New Zealand's no-frills arm, Freedom Air, joined the chase, announcing Christchurch-Gold Coast fares of $119.

Jumping the ditch

* The cut-throat transtasman aviation market has had an impact on tourist numbers to Australia.

* The Australian Bureau of Statistics in February recorded 59,000 New Zealand visitors, an increase of 13,500 or 29.8 per cent.