Air New Zealand cancelling domestic flights booked for May, June

Friday, 8 May 2020

Finance Minister Grant Robertson says the government's plan for level 2 will get as many people as possible safely working again.

Air New Zealand is cancelling domestic flights booked for the coming weeks and months, just days out from when the Government will decide if we move into level two next week.

It is also warning fares for the flights it does operate won't be at bargain prices.

Customers have been left facing higher prices if they want to rebook.

When New Zealand enters alert level 2, domestic travel will be permitted, including for tourism, although travel should not be for the purposes of attending large events or conferences.

Are you affected? Email newstips@stuff.co.nz

Stuff is aware of Air New Zealand cancelling bookings for flights including between Christchurch and Tauranga in late May, Wellington and Dunedin in June, Wellington and Timaru in early June, and Wellington and Queenstown in late June.

Air New Zealand chief executive Greg Foran said the airline would operate about 20 per cent of its normal domestic capacity in level 2.

'Alert Level 2 will see the return of flying to the likes of Queenstown, Invercargill and Blenheim in the South Island and Rotorua, Gisborne, Palmerston North, New Plymouth, Hamilton, Whangarei and Kerikeri in the north. This comes on top of current flights to support essential service travel between Auckland and Christchurch, Wellington, Tauranga and Napier, as well as between Wellington-Christchurch, Wellington-Nelson and Christchurch-Dunedin,” he said.

“We’ve been keen to start domestic air services as soon as practicably possible to support New Zealand’s economic recovery and connect family, friends and businesses. But the ramp up to higher frequencies will be a slow journey and even when we come out of Alert Level 1, all of our domestic destinations will see fewer flights and reduced frequencies. This is the harsh reality of closed international borders and a depressed domestic economy, with more Kiwis in unemployment and people watching what they spend.'

Foran said Air New Zealand would be working closely with Tourism New Zealand, regional tourism organisations, iwi partners and Government agencies like the Department of Conservation to encourage Kiwis to see more of the nation.

“We live in the best country on earth and on our doorstep have world class accommodation, attractions and activities. We’ll be strongly encouraging Kiwis to support our tourism sector and to visit friends and family.”

But he said that during Alert Level 2 Air New Zealand would not be able to offer its normal cheapest lead-in fares.

Air New Zealand has been cancelling domestic flights booked for May and June, just as a shift to level 2 appears to be on the horizon.

“One-metre social distancing means we can only sell just under 50 per cent of seats on a turboprop aircraft and just 65 per cent on an A320. On that basis, to ensure we cover our operating costs, we won’t be able to offer our lowest lead in fares until social distancing measures are removed.”

Customers receive an 'automatic credit' for their fares, meaning they will have to pay any cost difference when they come to rebook. Some customers have said that will leave them out of pocket because of the increase in future fares compared to the bargain prices some paid when they booked.

Air New Zealand will restart services to Taupo, Hokitika and Timaru as demand allows.

Customers who no longer needed their bookings were encourage to cancel to free seats for those who needed to fly.

A spokesperson for Air New Zealand shareholding Minister Grant Robertson said there was nothing in the debt funding agreement that precluded Air New Zealand from cancelling flights on the designated routes.

“There is a minimum service schedule that lists destinations and the minimum number of flights per week,” the spokesperson said.

“There is nothing that says the Government gets involved in decisions about flight cancellations. Air New Zealand just has to meet the minimum schedule and it’s up to it to decide how.”

Auckland International Airport a ghost town as flights in and out of New Zealand ground to a halt.

Wellington resident Sharron Pardoe, who works for Stuff, said she was disappointed to find a trip she had planned to Queenstown in June for her husband's birthday had been cancelled.

Pardoe received an email from Air New Zealand on Friday, outlining her flight NZ603 from Wellington to Queenstown on June 20 and the return flight NZ604 on June 23 were both cancelled.

“Due to the current alert level restrictions, we are reducing our domestic schedule significantly. Unfortunately, this includes cancelling the following flights,” the email read.

The flights would be credited and new flights would need to be rebooked before June 30, 2021.

Passengers would then have 12 months from the time the new booking was made to complete that travel.

“I’m a bit disappointed and a bit surprised that it’s been cancelled when [in] alert level 2, which should be up in a week or so, [the Government] has said we can travel.

“I know Queenstown will be gearing up for snow and all that stuff … it would’ve been nice to have been able to support them as well as enjoy our long weekend and a bit of a break,” she said.

Queenstown Chamber of Commerce chief executive Anna Mickell said: 'It has big social and economic consequences. However, what we really needs is a strong and stable airline and if this commercial decision is one that they must make to ensure their long term sustainability, we, regretfully, need to accept it.'

KiwiRail chief executive Greg Miller said the Interislander ferries had been providing travel for essential passengers and maintaining freight links between the North and South Islands throughout lockdown and alert level 3.

He said KiwiRail intended to widen the ferries services to include general passengers once the country moves to alert level 2. “We are taking seriously our responsibilities to protect the public and our staff and appropriate measures will remain in place, including physical distancing and heightened cleaning procedures,” Miller said. “The detail of what that will mean at level 2 is still being finalised.”

Cabinet is set to decide on Monday when the country will move into level two. The country will likely get 48 hours notice before it comes into effect.

On March 20 the Government said it had agreed to loan Air New Zealand up to $900m in two tranches over two years provided the airline met a range of conditions.