The airline said today’s fare reductions were effective for travel from October 14 and built on significant price cuts announced last month on Air New Zealand’s popular services between Auckland-Sydney and Auckland-Melbourne.
The reductions coincide with the introduction of Air New Zealand's refitted A320 aircraft.
The airline said customers in Auckland, Hamilton, Wellington, Christchurch, Queenstown and Dunedin stand to benefit from the cuts in fares to Sydney, Melbourne, Brisbane and the Gold Coast.
The latest reductions mean that Air New Zealand's long-term one-way airfare from Christchurch to Melbourne will drop to $229 from $271, the Auckland-Brisbane fare falls from $372 to $269 and Wellington-Sydney from $358 to $299.
Air New Zealand General Manager Tasman Pacific Airline Glen Sowry says the airline is dropping prices to further stimulate demand on the highly competitive Tasman market, which has an over supply of capacity.
"In the current market of static growth, demand must be stimulated by having better product than your competitors, or better pricing'" Mr Sowry said.
"The Tasman is our home market and we will continue to ensure that we remain market leader by continuing to offer the best combination of price, product and frequency."
Mr Sowry says Air New Zealand is investing almost $60 million in fitting its fleet of 13 A320 and five Boeing 767 aircraft that fly the Tasman and Pacific Island routes with new personal on-demand in-flight entertainment, which customers are able to watch gate-to-gate.
The first of the refitted 767s and A320s are now in service, with the fleet upgrade to be completed by the end of the year.
"Given this significant investment in our Tasman fleet it is imperative that we fly full planes," Mr Sowry said.
Air New Zealand was determined to offer the best value deals on the Tasman, he said.
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