Home Sweet As

Agency HOST
Advertiser Air New Zealand
Author Matt Kingston
Total Campaign Expenditure Under $500K


The trans-Tasman travel market has quickly gone from being a duopoly, consisting of the two national carriers Air New Zealand and Qantas, to one of the most hotly competitive in the world. There are now eight airlines competing for just 5.8 million annual passengers1.

The majority of the market growth has come from low-cost carriers, which has completely changed the consumer demand dynamic. Like many other short-haul air travel markets globally, price has become the dominant variable that drives consideration and purchase. Air travel has become highly commoditised. People are willing to ‘slum it’ if the flight is short enough. This change in dynamic saw the low cost carriers increase their capacity on the trans-Tasman route by a third in 2009. With Jetstar leading this expansion and the global financial crisis stunting consumer demand; 2009 was one of the most difficult years in Air New Zealand's 60 year history.