Good news – I’m a huge fan of value based flights, which increase volume of travel and thus reduce the dependance of the airline on the wealthier segments of business and society. It’s not for nothing that the two biggest discounters (Jetblue and Southwest) in the USA are the two most profitable (and liked) airlines here.
When the cost of flying is approaches that of the alternatives (cars, buses, boats and trains) then those who have a lower value of their own time will fbegin to fly. For example, if it costs $120 to fly to Auckland from Wellington, and $40 (and 8 hours) to drive, then those who value their time at less than $10 per hour would drive.
Dropping the prices also boosts domestic (and international) tourism revenue, and has a tremendous flow-on effect to the New Zeland economy.