The airline's cheapest fares have fallen by up to $10, with the introduction of new Seat with carry-on luggage only fares on all its regional and domestic jet services.

This is in addition to the three existing baggage-inclusive fare levels of grabaseat, Smart Saver and Flexi plus.

"Seats to Suit is the flexible fare structure Air New Zealand introduced 14 months ago on Tasman and Pacific Island flights and its outstanding success means we are extending it to include our domestic services as well," said Air New Zealand Group General Manager Australasia Airline Bruce Parton.

The new entry-level fares means Air New Zealand will now have well in excess of 1.5 million domestic fares under $100 available for customers each year, more than any other carrier.

All customers on domestic jet, Q300 and ATR turbo-prop services will continue to enjoy complimentary tea, coffee, water and a snack, and breakfast on domestic jet services before 9am on weekdays as well as wine, beer and cheese and crackers between 4.30pm-7pm.

Prices for the new lead-in Seat fares will be $10 less than lead-in Seat + Bag airfares and will appear to customers on www.airnz.co.nz similar to the following Auckland-Christchurch example:

Standby fares go nationwide

For those looking for even cheaper fares and with time on their side, Air New Zealand is today introducing standby fares nationwide until 30 June next year, following trials in Dunedin and Christchurch.

$59 one way Standby Seat Only fares are now available to many of the airline's 27 domestic destinations on any non-stop off peak (10am-3.30pm) flight, with the two longest routes of Auckland-Dunedin and Auckland-Queenstown available for $79 one way).

Standby fares including a bag are available for $10 more per person per one way journey.

"This means thousands of last minute, bargain basement seats on regional and main trunk routes every week," says Mr Parton.

"It is important to point out that these are standby fares, which means passengers will only fly if there are spare seats available on the specified off peak flights."

Blackout periods will be put in place on peak travel days when the likelihood of passengers getting a seat is small.

Anyone who's not already an Airpoints member can sign up online for free until the end of January to take advantage of the standby fares.

Full details about the fares and how to use them are available at www.grabaseat.co.nz/standbyfares

Ends

Issued by Air New Zealand Public Affairs ph +64 21 747 320