Has Air New Zealand become a low-cost airline? The flag carrier of New Zealand has dropped prices and complimentary luggage allowance for domestic flights. From November 29, 2011, the new “seats to suit” fares include 7 kg of carry-on luggage, but an additional fee of $10 NZD will apply to check a bag.

“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,” explained Bruce Parton, the Air New Zealand group general manager.