New Zealand's economy class airfares soar

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TUESDAY, 12 DECEMBER 2000 B U S I N E S S S T O R Y New Zealand's economy class fares soar - survey 12 DECEMBER 2000

New Zealand's economy class airfares have soared 10 percent during the past year - the biggest increase in the Asia-Pacific region, a survey shows. The American Express Asia-Pacific Airfare Index showed business class fares were also on the rise, up 8.6 percent for the year. First class fares rose only 1.6 percent.

"Airfare prices are being pushed up by rising international jet fuel costs and the impact of a steady decline in the value of the New Zealand dollar against the United States currency," American Express spokesman Mark Reynolds said.

"When the market is as difficult as this, it is important to shop with a substantial agent who will be able to find the best available fare," he said in a statement.

Air New Zealand spokesman Cameron Hill confirmed that increased fuel costs and the low New Zealand dollar were behind the increases.

"The low value of the New Zealand dollar also impacts on major items such as the cost of spare parts, again purchased in US dollars, and the cost of aircraft leases, which are paid for in US dollars," Mr Hill told NZPA.

"So there has been considerable pressure on us (and) we have flagged that as we have made fare increases."

Meanwhile, Air New Zealand on Monday announced it was reducing the advance purchase requirements of some of its domestic airfare deals.

Priceless fares usually had to be booked and paid for 21 days in advance and real deal fares 14 days. That had been dropped to seven and three days respectively for travel between December 25 and January 12.

However, fares were subject to availability so travellers should be prepared to be flexible about their arrangements. - NZPA

http://www.stuff.co.nz/inl/index/0,1008,539914a13,FF.html

-- Martin Thompson (mthom1927@aol.com), December 11, 2000


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