1987: Air New Zealand and Ansett New Zealand go head to head

It's July 1987 and fully state-owned Air New Zealand is well aware that its long standing monopoly on the main trunk domestic routes is about to be challenged by Ansett New Zealand, which, at the time, was 50% owned by Ansett Australia.  Both airlines took out full-page ads in newspapers promoting the merits of their offerings. It's extraordinary to think that, quite possibly,  without Ansett New Zealand's entry into the domestic airline market, that it could have been many years (if at all) before domestic main trunk services had innovations such as airbridges and lounges.  As the ads are all A1 sized broadsheet, and my scanner is only A4, pardon me for cobbling these together.

Air New Zealand started with this ad focusing on its offering three - yes THREE - distinct classes of service:

- Pacific Class (Business Class) essentially consisting of Euro-business class with a blocked middle seat, Koru Club access, priority boarding and luggage, and better food and drink service.

- Economy Class (which now includes cold meals at meal times with light snacks at other times)

- City Saver (high density equipped aircraft with no on board catering, but all seats are fully flexible tickets for business travellers).

Air New Zealand introduced Pacific Class as a foil against Ansett New Zealand offering First Class on domestic services. As a quick conversion it blanked out the middle seats, inserted a small table in the middle and covered the window and aisle seats with sheepskin. It offered two-course meals at meal times, and high quality snacks in-between. At this point the licensing laws meant that on-board alcoholic drinks were not yet permitted. Priority check-in, Koru Club access (albeit they only existed in Auckland, Wellington and Christchurch at the time) were also part of the service. It was sold as $22 more than full economy fares, but then most passengers didn't pay full economy fare.  This was seen as attracting higher income fliers who wanted comfort and privacy, but was also a placeholder to show it also had a premium product (and indeed it HAD offered such a service on its limited Boeing 767 and 747 services on certain days of the week, for some years).

Air New Zealand ad July 1987 - domestic business class - Pacific Class

At the other end of the market, Air New Zealand offered a no-frills, but fully-flexible service with a separate fleet of Boeing 737-200s set up as one-class, high-density, offering flat flexible fares and no-frills service. The hope was that business travellers would find this appealing, essentially being able to change tickets and fly whenever they wanted.  However, these were not the cheapest fares, and often standard economy (with some frills) could be cheaper on some routes and times, than City Saver. Ultimately, this failed in part because of the complexity and cost of having two different fleets of aircraft.

Before Ansett New Zealand, Air New Zealand had International First Class Lounges for international premium passengers, but not domestic. Koru Club was launched directly in response to Ansett NZ launching its Golden Wing lounges (reflecting the same in Australia).  It was entirely membership based at the time, although Pacific (Business) Class passengers could access it.  The focus was on refreshments, drinks, comfort, but also TVs, teletext news (!). Curiously it also offered access to Australian Airlines lounges (previously TAA, later to merge with Qantas) for domestic travel in Australia.  Particularly curious when later Air New Zealand would be 50% owned by Ansett.

Part of Air NZ's strategy was to uplift its core product - economy class (on the main trunk only). Seats got refreshed, but the main element was to offer cold meals at meal time, and snacks at other times.  By selling this as the "middle" class between Pacific Class and City Saver, the airline was seeking to cover the market

Ansett New Zealand, highlighting the importance of newspaper advertising in 1987, spent a fortune to produce a six page feature ad in major newspapers (newspapers today could only dream of this type of advertising, and this was broadsheet format).  The first page being "From today there's a new star in our skies" and the second and third being a stylised Boeing 737-100.

The core of Ansett NZ's push to attract passengers was an emphasis on quality of service, as it sought to target frequent flyers, particularly business travellers.  The key selling points for Ansett were:

• Hot meals at meal times in economy class
• Purpose built new terminals, especially relevant in Wellington (which until 2000 still had the converted 1920s aircraft factory as the domestic terminal), to operate more efficiently and with fewer crowds.
• Airbridges at airports (Given boarding on Air NZ until literally months before was done as steps to the aircraft, which in July meant a lot of exposure to winter weather).
• Quick check-in and baggage retrieval
• Airport lounges - Ansett's Golden Wing lounge concept used in Australia was brought to NZ, available on a membership basis and to passengers in...
• First class. With larger seats, more legroom, dedicated cabin crew, full three-course meals at meal times, storage for coats and larger carry-on baggage.

Also noted is the cutaway was... the availability of newspapers and magazines, activities for children, plenty of overhead locker space.  Ansett NZ was seeking (and arguably succeeded) in being the "premium" domestic airline.

The final page was the schedule. As this ad was in the Dominion, it was a schedule focused on Wellington.   It displayed a schedule of nine flights a weekday (six on Saturdays and Sunday) each way between Wellington and Auckland, and seven flights a weekday (six on Saturdays and Sunday) between Wellington and Christchurch.  By today's (2024) standards, this is far in excess of what Jetstar offers on either route. This was a significant effort to rival Air NZ.

This began a period of 14 years of competition between the two airlines, before the Air NZ ill-fated takeover of Ansett Australia saw the airline rebrand as Qantas New Zealand, before folding.