Price hikes feared on the Los Angeles-Auckland route may not eventuate since Qantas pulled out of the route last week.
Air New Zealand has no immediate plans to raise fares and the delivery of more efficient aircraft to the market next year will increase the competition on North American routes.
A spokeswoman for the national carrier says there was no plans to raise fares and capacity on the route would be increased as a result of Qantas’ announcement.
“Air New Zealand currently operates 12 direct services per week between Auckland and Los Angeles utilising Boeing 777-300 aircraft.
“Air New Zealand plans to add further capacity on the route as a result of Thursday’s announcement, meaning even more everyday low fares will be available. Grabaseat will continue to also offer great deals to LA on a regular basis,” the spokeswoman says.
While the average fare was likely to increase with a reduction in the frequency of cheap fares offered per flight it would not make sense for individual fare levels to be increased, Eagle Aviation Consulting’s director David Lanham says.
The delivery of Boeing’s 787-Dreamliners will bring a lot more competition to North American routes, Mr Lanham says.
“There’s a gaping hole in the market for Jetstar, they’ve taken the opportunity to fly non-stop to Singapore and that’s a fantastic strategy they’ve unveiled. Feeding Kiwis into their Singapore hub throughout Asia so I wouldn’t be surprised ultimately if Jetstar come onto the route,” Mr Lanham says.