Air New Zealand offers $7 flights in domestic air fare price war

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By: Newstalk ZB staff | Business News | Saturday October 27 2012 6:45

Cut throat competition has brought some airfares to a fraction of the cost of driving the family car.

Air New Zealand is offering seats on its late night service between Auckland and Wellington for $7 each, in the lead-up to Christmas.

Aviation commentator Peter Clark says the airline has a large fleet, and it can push its rival Jet Star on the domestic market.

"It's going to make it hard for Jetstar now because this is very competitive. They are going to have to work at it now and work at it now and improve their customer service to get loyalty and get people on their aircraft."

Jetstar trumped Air New Zealand's original rate on the Night Rider of 29 dollars, with a 19 dollar fare between Auckland and Wellington.

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