Return to market for Govt air travel

  • 24/02/2016
Economic Development Minister Steven Joyce (File)
Economic Development Minister Steven Joyce (File)

There'll be a return to market for the Government's air travel contract, which is set to expire in December.

The Ministry of Business, Innovation and Employment has decided to retender the contract, which was signed in late 2011, rather than exercise any renewal options, Economic Development Minister Steven Joyce says.

"The decision to retender follows a robust review which showed recent changes in both the domestic and international markets are generating increased competition on key flight routes, while some other routes are no longer serviced," he said.

Since the contract was signed, a number of smaller domestic airlines have entered the regional market and there's also increasing competition internationally.

This makes it an "opportune" time to return to market, Mr Joyce said.

A request for proposals will be released later this year and a new contract will be in place by mid-December.

Around 290 agencies and schools participate in the all-of-government air travel contract.