Air New Zealand has announced it will introduce simpler, all-inclusive pricing on its domestic fares from March 31.
In response to customer demand for easier to understand fares, additional costs such as the Government security and insurance levies currently added onto fares will be incorporated into a new overall price so that the price consumers see, is the price they will pay.
This is not a price increase. Overall, Air New Zealand will not be collecting any more levies, taxes and surcharges under this new pricing structure than it does at present.
The new all-inclusive prices have been calculated by taking the airline’s Express Class fare and then taking the overall total of levies applicable to each route.
The average of these levies has then been calculated, and this has been smoothed across each route, evening out the higher and lower ends of the levy spectrum to produce one straightforward, all-inclusive price.
Levies currently vary, even on the same route, depending which journey options a customer takes (direct or indirect) and the aircraft type involved (jet or turbo-prop). The new approach delivers a simple all-inclusive price, regardless of which journey option a customer chooses.
The current levies payable per sector travel are as follows:
* Civil Aviation Authority domestic passenger levyÊ- $2.00 * War Risk Insurance Levy - $5.00 * Domestic Aviation Security Screening levy - $2.80
(applies only to aircraft with 90 seats or more)
Air New Zealand Chief Operating Officer Andrew Miller described the move to inclusive pricing as “an initiative that delivers simpler fares for customers - true to the spirit of Express Class.”
He added: “Research feedback shows customers are keen for this change.
They want one easy to understand price with no added levies to the fare.”
Customers booking online will continue to avoid any service fees. For customers booking through Air New Zealand Travelcentres or the Call Centre, the new all-inclusive advertised price will include the current service fee.Ê Customers booking through a travel agent will still be required to pay a service fee.