Air NZ plans more domestic flights and bigger planes

Air New Zealand is further bolstering its key regional services and promising lower fares.

The airline will add more than 9500 seats to the domestic network from February through a mix of more flights and larger aircraft on some routes.

Among the key changes are direct weekday flights between Wellington and Invercargill doubling to twice daily.

Flights between Tauranga and Christchurch would more than double to 11 return services a week. The additional direct flights from Tauranga and Wellington would be at peak times.

Air New Zealand's Australasia group general manager, Bruce Parton, said flying more direct services rather than via a main centre would lower costs, allowing average ticket prices to be reduced. It would also free up more space on flights from Tauranga to Wellington and Auckland, allowing more cheaper seats to be made available.

Seat numbers would also be increased between Auckland and Palmerston North, as well as between Auckland and Napier and Palmerston North to Christchurch, by using larger aircraft.

The 50-seat Bombardier Q300 would be swapped for 68-seat ATR-72s on those routes.

Flight schedules for services between Queenstown and Christchurch would also be adjusted to improve connections with trans-Tasman services.

Air New Zealand cut back domestic capacity during the recession. Mr Parton said the latest changes were in response to early signs of an anticipated recovery in demand for domestic travel.

Air New Zealand runs more than 500 flights a day to 26 domestic destinations. However, the airline faces the threat of competition from Jetstar on the regional network, where it has a monopoly.

The Centre for Asia Pacific Aviation expects Jetstar to attack some of Air New Zealand's lucrative regional routes within two years, using turboprop aircraft supplied by parent Qantas.

A planned trans-Tasman alliance between Air New Zealand and Pacific Blue's Australian parent, Virgin Blue, also meant Qantas would look to hurt the national carrier in its home market, the centre said.

Jet services between the main centres will return to a duopoly with the departure of Pacific Blue next month.

Mr Parton said Air New Zealand was more focused on its own business, rather than worrying about what competitors might do.

- © Fairfax NZ News