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Air New Zealand to lift capacity on improved demand

PCC Daily News for Pilots

May 24, 2010

WELLINGTON, NZ (Reuters) - Air New Zealand Ltd will increase capacity on some North American and Asia services from November in response to improved demand, the national carrier said on Tuesday.

The airline plans to put on more flights to Vancouver, San Francisco and Los Angeles and Japan between November and March next year, raising international capacity by 4.9 percent from a year earlier.

"We are seeing a slow, but definite sign of a recovery from the reduction in travel in 2009, however these are still 13 percent below levels in 2008," said Air NZ's Deputy Chief Executive Norm Thompson.

Capacity on flights to the United Kingdom and China would remain unchanged, but there would be an increase on particular routes between New Zealand and Australia and domestic capacity would also rise by 3.8 percent.

Shares in Air NZ, around 77 percent owned by the New Zealand government, last traded steady at NZ$1.20, in a broadly weaker market.

Earlier this month, Air NZ and rival Australian carrier Virgin Blue said they would seek regulator approval for a trans-Tasman alliance to strengthen their positions in a fiercely competitive market.

*Reporting by Gyles Beckford

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