Air fares anything but cheap

When Air NZ chief executive Christopher Luxon says his domestic air fares are among the cheapest in the world (yesterday's Chronicle) you know he's pulling your leg.

Come on ... getting from Wanganui to anywhere else in the country by Air NZ is overseas-holiday prices.

Wanganui has a good air service between here and Auckland, four times a day, provided by Air NZ, using 19-seater Beech 1900 aircraft with an average age of 12.7 years. It's a bit like taking an airborne bus, but with less room.

What's not good is the price which can vary considerably. Today, for example, flights to Auckland range from $314 to $419. That's one person, one way.

For many, it's unaffordable, and if they don't fly, that's money the airline is not getting.

Mr Luxon says routes servicing smaller towns are often considered uneconomic. They might be considered as such but are they in reality? The Wanganui-to-Auckland service makes a profit - a big one.

Air NZ used to fly from here to Wellington but profits became so marginal they gave it away and Sounds Air picked up the slack, providing a reasonably priced service twice a day.

Putting it in perspective, you can fly from Wanganui to Wellington on Sounds Air and pick up a Jetstar flight to Auckland for a lot less than an Air NZ flight direct from Wanganui to Auckland. Sounds Air also offers cheaper options.

I'm suggesting Air NZ is overpricing regional route fares to subsidise flights between the big centres, where they're competing against Jetstar.

On the regional routes, is Air NZ a monopoly? The short answer is yes, which is why they're charging what they feel like. With no regulatory control, people flying from Wanganui or any smaller centre will continue to prop up the cheaper fares on the trunk service.

Airports are regulated, why not airlines?