Originally Posted by
modandm
Looking at NZ's strategy it is becoming increasingly aggressive towards competitors (particularly Trans-Tasman).
The movement to seats to suit is stealing market share from Emirates and Jetstar who have traditionally picked up the lower yielding pax. With the Alliance coming into force and greater frequency and even new TT routes (AKL-HBA/CBR most likely) AIR is well placed.
I believe it is Jetstar that will most be affected as Emirates is a quality long haul full service product and should be able to maintain pricing levels even with Air NZ priced slightly lower. Loads though are likely to be affected somewhat. Jetstar on the other hand needs to price at least 25% below Air NZ and will really struggle with both loads and basement yields as perception of the carrier worsens.