Commerce Minister Craig Foss is backing calls for Air New Zealand to offer cheaper regional flights, saying air services are important to regional New Zealand.
Air New Zealand has rejected any suggestion its financial results are due to price-gouging those living in the regions, after yesterday announcing a 45 percent increase in profit, to $262 million.
After the announcement, Prime Minister John Key said he did not believe Air New Zealand was gouging those flying to and from regional airports but that he had raised the issue with the airline’s chief executive, Christopher Luxon.
“I’ve made it clear to him that I think Air New Zealand needs to continue the work it’s doing of making sure that it reduces prices to the regions if it can, because in the end we always know they're likely to have a more monopoly-type position in those areas,” Mr Key said.
Mr Foss said he agreed Air New Zealand needed to reduce prices for flying to the regions, because air services were important to regional New Zealand.
Mr Luxon was quick to reject any suggestion of excessive profits from regional routes. He said Air New Zealand had not raised the cost of its regional tickets for the past six years, despite increasing fuel and airport costs.
