Trans-Tasman routes to become "domestic"

[openseat]

The common currency is falling from favour - just look at the issues Greece and Spain are now having due to being part of the European Union and Currency, subject to the much bigger going ons in Germany and France, and not having the ability to control their own monetary policy.

Sure is according to NZ Reserve Bank Governor
NZ says common currency with Australia unlikely - ABC News (Australian Broadcasting Corporation)

 

[JohnK]

I wondered the same thing - while accepting that there are some additional overheads on international flights, 30% sounds like a lot!

To be fair the article did say up to 30% off for airfares. I would be surprised if the reduction to airfares was as high as 30%.

 

[serfty]

more likely 30% in relation to the base fares ... at best ...

 

[beardoc]

Time for the OU - the Oceania Union!

I'm sure that the Solomon Islands and Fiji would be thrilled at that idea.

 

[Keith009]

One less Flounge opportunity?

 

[NM]

One less Flounge opportunity?

I would not be as certain of that as being a result of this proposed change. It is my expectation that the flights will still operate from the international terminal and just be treated similar to how domestic legs of international flights are treated now with passengers having a specific identifying stamp or similar on their boarding pass (like the big orange D) for express immigration and customs handling.

 

[Maca44]

If it was classified as domestic travel across the Tasman, I can't see a problem with flights departing from the Australian domestic terminals. Pax would pass through perhaps a more stringent security screening with luggage, but after that (and domestic pax are not entitled to duty free so that alleviates that issue) they could simply board as they do any other domestic flight.

Note, I am only referring to domestic flights and not international flights that have a connection in say Auckland etc as those flights would need to leave from the various International Terminals.

 

[ozimax]

Finally some common sense.

Now how about a shared currency.....

Aussie dollar = pacific peso. Not worth a cracker ATM. Even taken a plunge against the PNG currency as at last week.

 

[NM]

If it was classified as domestic travel across the Tasman, I can't see a problem with flights departing from the Australian domestic terminals. Pax would pass through perhaps a more stringent security screening with luggage, but after that (and domestic pax are not entitled to duty free so that alleviates that issue) they could simply board as they do any other domestic flight.

Note, I am only referring to domestic flights and not international flights that have a connection in say Auckland etc as those flights would need to leave from the various International Terminals.

I guess we will have to wait and see just how such logistics will work. My guess remains that it would be from the International Terminals with similar logistics to current domestic segments of international flights.

 

[Nigelinoz]

My ubderstanding is that the proposal involves treating passengers arriving in either country as being a "domestic" visitor and that this means that they will immigration cleared prior to departure not on arrival,so some form of clearance will still be required.
I have not seen anything that suggests that flights would be departing from domestic terminals,and one would think that would be fairly impractical anyway given that there will still need to be some form of customs surveillance,one would think anyway.

 

[serfty]

I guess we will have to wait and see just how such logistics will work. My guess remains that it would be from the International Terminals with similar logistics to current domestic segments of international flights.

I concur with this based on clearance still needs to happen.

However, if using a system similar to the D stickers, it is difficult to imagine a 30% reduction in costs, even on the AUD90 one way base fare MEL/AKL.

 

[docjames]

Well, to me, it'd be a waste if you have to go International (with earlier checkin cutoffs etc) - I'd really think this would add value if it was domestic to domestic.

Might be interesting as there'd probably end up being a mixture:

- QF / DJ from their own terminals
- Pac Blue Intl
- Air NZ - Dom in NZ, Intl in Aust? Common user terminal? DJ terminal?
- Others (eg. UA AKL-LAX - prob stay arriving intl)


Really, it works well for point-point NZ-AU flights (imagine the ease on a basic AKL-MEL or CHC-ADL etc), but not for those also carrying through traffic (MEl-AKL-LAX, LAX-AKL-SYD etc).

 

[comint]

Public Service Money Pits

It is my expectation that the flights will still operate from the international terminal and just be treated similar to how domestic legs of international flights are treated now with passengers having a specific identifying stamp or similar on their boarding pass (like the big orange D) for express immigration and customs handling.

Unfortunately this version of processing just adds additional costs and complexity to processing.

For immigration, even though “D” sticker passenger processing at most International airports is fairly quick, it is still a process that costs in terms of personnel, time & administration etc. Let’s guess that it’s around 50% (of the cost per passenger) to process compared to a standard immigration desk?

Plus, we are talking about moving immigration formalities to a new location. This isn’t just a simple 100% move of processing/admin costs to a new base (whether those costs are smartgate or human operated) there will be new administrative and managerial costs related to opening/running a second immigration station. Let’s say 20% of the current operating costs to process NZ arrivals.

Thus, if it costs 100% for immigration to process NZ arrivals at the moment, we could be looking at a cost blow out to 170% to run your proposal.

Next, I imagine that customs would be none too happy about pre-cleared passengers mixing with unsterile international arrivals in the international terminals. There are too many opportunities for the baddies to take advantage of the system. Another cost blow-out, as Customs won’t want to close the component of its Australian operations (that deal with NZ arrivals) completely, and the cost of opening second processing facilities offshore will probably be more than the value of the synergies (which would be removed) by operating exclusively at point of entry into Australia.

Yet another processing problem – Quarantine. What you can legally take out of Australia or NZ is different to what you can bring in. So while you might consider there would be screening synergies at the International departure airports by using existing security stations, there won’t be. It would need to be more like USA departures, with an additional screening that leads to an additionally-secured gate area. And this doesn’t deal with arrival sterilisation issues, so I would expect that Quarantine would be after additional money for dogs to do 100% check on all passengers using the D quarantine channel. (Similar to domestic arrivals into Tasmania.)

 

[notzac]

One less Flounge opportunity?

The way I read it is that you would still leave from the international terminal, perhaps with expedited processing - however the plane would arrive in to the domestic terminal, similar to what happens in the LOTFAP for flights to/from Canadia.

If so, no loss of Flounging :]

 

[NM]

I wonder if they will remove the AU Passenger Movement Charge (formerly known as Departure Tax) of $47 per passenger? If truly a domestic flight, surely the AU tax would have to be removed.

And then will airlines be required to collect GST on the cost of the airfare since its now a domestic fare and not an international ticket?

 

[JohnK]

And then will airlines be required to collect GST on the cost of the airfare since its now a domestic fare and not an international ticket?

And in theory fuel surcharges should be negligible as it would be a domestic flight and not an international trans-tasman flight.

 

[abc12345678]

I'd really think this would add value if it was domestic to domestic.

No F Lounge in Domestic!!!!

 

[docjames]

No F Lounge in Domestic!!!!

As useless QFF Silver, that's not a drawback to me.

 

[serfty]

As useless QFF Silver, that's not a drawback to me.

... unless you are travelling with a WP ...

 

[docjames]

Touche!






tcm