Greg Foran: no reprieve on sky high airfare prices
Perfect storm of high fuel prices, low airline capacity, and significant investment in ground and air assets will serve to keep airfares in the clouds.
Air NZ has leased a former Cathay Pacific 777 on the back of capacity issues.
What’s at stake: High fares are set to remain a feature of air travel in the wake of capacity constraints, fleet, and infrastructural upgrades.
Background: Greg Foran says fuel prices and operational investments will have a significant role to play in propping up airfares. The wider industry is also concerned about the implications of a near $6b investment programme at New Zealand’s largest terminal.
Main players: Air New Zealand, Auckland International Airport, Barnz, Greg Foran, Cath O’Brien, Carrie Hurihanganui.
Air New Zealand continues to cite capacity issues, fuel prices, operating and airport costs as the chief culprits for sustained high airfares.
Chief executive Greg Foran today said the price of jet fuel, which recently peaked at about US$105 ($174) a barrel (bbl), is a key factor, at about $20/bbl
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What’s at stake: High fares are set to remain a feature of air travel in the wake of capacity constraints, fleet, and infrastructural upgrades.
Background: Greg Foran says fuel prices and operational investments will have a significant role to play in propping up airfares. The wider industry is also concerned about the implications of a near $6b investment programme at New Zealand’s largest terminal.
Main players: Air New Zealand, Auckland International Airport, Barnz, Greg Foran, Cath O’Brien, Carrie Hurihanganui.
