ANZ Takes Express Spirit trans-Tasman

12th Aug 2003

Air New Zealand today becomes the first airline to introduce everyday, low-cost travel across the Tasman - cutting its lead-in Auckland-Sydney fare by 45% with an average reduction of 20% across the full range of lead-in fares including Business class.
Tasman Express is the latest move in the airline`s development focused on delivering simple, low price fares to encourage more people to travel more often.

Unveiling the details of Tasman Express fares which go on sale today for travel from October 29th,Ê Air New Zealand`s Managing Director and Chief Executive Officer Ralph Norris said the company was extending the successful Express concept to the Tasman route as promised.

“Domestic Express Class was revolutionary - today`s announcement is evolutionary.Ê It`s the next step in a fundamental change of direction for Air New Zealand, setting the benchmark in everyday, low-cost travel on the Tasman.

“And to kick off Tasman Express we are offering 1,000 free seats to our customers booking online in the next ten days.”

Travellers in both New Zealand and Australia will benefit from new fares to an unrivalled range of direct trans-Tasman destinations including Sydney, Melbourne, Brisbane, Cairns, Perth in Australia, Norfolk Island and Auckland, Wellington, Christchurch and Queenstown in New Zealand.


Key features of Tasman Express include:

*  Auckland to Sydney, one-way fare from $189 (excl. applicable taxes and levies, and service fees) reduced from $344.50 each way - a saving of $155.50

* Lead-in Tasman Smart Saver fares an average 24% lower than current special fares on sale

* An average 20% reduction on the full range of lead-in fares, including Business Class, and up to 45% compared to current lowest year round fares

* A customer offering of I,000 free seats to customers who book online in the first eleven days, 12 -22 August 2003, for travel commencing between 29 October and 20 December 2003

* Fares available year-round, not only as ad-hoc, promotional deals

* A quarter of all seats available, on average, in the lowest Tasman Smart Saver fare range. On some flights, up to 40% of seats are expected to be available in this price bracket

* Three simple, economy fare categories - the same as domestic Express Class. Complicated fare rules and conditions scrapped

* Mix and match flexibility - the same as domestic Express Class, using a one-way fare structure

* Booking online through saves up to $50 in service fees (based on a return journey).

Tasman Express will retain a two-class structure, Business and Economy Class, and free onboard food and in-flight entertainment will continue. The food and beverage service will move to a simpler, more contemporary style.

While newspapers and magazines will no longer be provided, except in Business Class, Air New Zealand`s popular in-flight magazine will remain in both classes.

Mr Norris said the new low fares are possible because of some fundamental changes the airline has made to its trans-Tasman model.

“We`re working harder and smarter to deliver fares which will stimulate the market, both in terms of higher passenger numbers, and also in directing more bookings to the Air New Zealand website.Ê

“Savings have been made with our new-look food and beverage service and the operational savings from the progressive introduction of our new Airbus A320 aircraft on the Tasman will also provide cost benefits.”

Economy Class fares will follow the simplified structure of the domestic Express Class including the removal of complex fare conditions requiring advance purchase or Saturday night stays.



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