Minister James Meager expressed discomfort with the idea of flying being unaffordable for the average New Zealander. He highlighted the need for competition in the aviation market to lower airfares and make flying more accessible. The decision to conduct a market study to assess competition levels lies with the Commerce Commission and the commerce minister.
Meager acknowledged the lack of competition in regional areas and emphasized the importance of encouraging smaller airlines like Jetstar to compete with Air New Zealand. The Airports Association pointed out Air New Zealand’s market dominance and suggested government intervention to prevent excessive fares.
The government is looking into reviewing the Commerce Act to include regulations for airlines. Meager suggested exploring ways to reduce unnecessary costs on airlines and airports to make air travel more affordable. While he couldn’t commit to regulating prices, he mentioned the possibility of investing more in airports to support regional routes.
Meager met with regional airlines to address their concerns and is working on a support package for regional connectivity. The government is considering underwriting finance for regional airlines to expand their fleets, with a decision expected soon. The goal is to make air travel more reliable and consistent nationwide.
Meager emphasized the importance of making flying accessible to all New Zealanders and ensuring affordability. He highlighted the government’s efforts to explore options for reducing airfares and making flying a viable option for everyone, rather than just the wealthy.
