Air NZ to boost capacity

New Zealand's Air New Zealand is adding capacity on domestic and international routes to meet growing demand.

"We are seeing a slow, but definite sign of a recovery from the reduction in travel in 2009, however, bookings are still 13 per cent below levels in 2008," deputy chief executive Norm Thompson said.

The news comes as the NZ government has said it will spend more to attract visitors from Australia.

For its part, Air NZ says capacity on its routes to Australia will rise 10.2 per cent from last year.

Air New Zealand and Australian budget carrier Virgin Blue said recently they intended to form an alliance on Australia-NZ routes.

Air NZ to boost capacity

New Zealand's Air New Zealand is adding capacity on domestic and international routes to meet growing demand.

"We are seeing a slow, but definite sign of a recovery from the reduction in travel in 2009, however, bookings are still 13 per cent below levels in 2008," deputy chief executive Norm Thompson said.

The news comes as the NZ government has said it will spend more to attract visitors from Australia.

For its part, Air NZ says capacity on its routes to Australia will rise 10.2 per cent from last year.

Air New Zealand and Australian budget carrier Virgin Blue said recently they intended to form an alliance on Australia-NZ routes.