Neha Jain: http://newzealandaviationnews.blogspot.com/16

1. Southland pair attend Erebus memorial

Two Southland men orphaned by the Erebus tragedy yesterday made a pilgrimage to the continent their parents never returned from.

Dean Carleton, of Winton, and Invercargill man Grant Colbran flew to Antarctica with 102 other family members for a service to remember their loved ones.

Some 257 were killed on November 28, 1979, when Air New Zealand flight 901 flew into the side of Mt Erebus.

Six Southlanders died on the ill-fated DC10, in what is New Zealand's worst aviation disaster.

Mr Colbran's parents, North Makarewa couple Cyril and Yvonne Colbran, won the trip in a 4ZA radio station promotion. Invercargill broadcaster John "Boggy" McDowell was four months into his job when he gave away the tickets on air.

Three Southland passengers, Mr Carleton's parents, Otautau couple Barrie and Marion Carleton and Bryan Holtham, of Invercargill, were among the 44 passengers whose remains were not identified or recovered – 16 bodies were unidentifiable and 28 were never found.

Owen Murray, from Mataura, also died.

Yesterday Mr Carleton, Mr Colbran and the other Erebus disaster relatives left Christchurch Airport on a special air force flight at 9.10am.

The Boeing 757 landed near Scott Base about 2pm for an outdoor service conducted at the koru sculpture site, which has views of Erebus.

Weather permitting, the family members were to be flown around the crash site at Mt Erebus, 37km away from the base, before departing about 8pm and arriving back in Christchurch about 1am to-day.

It is the second time family members of the victims have been taken to Antarctica. The first was during the 30th anniversary commemorations of the tragedy in 2009.

Yesterday's trip means representatives of all but 20 of the victims' families have now been to the ice.

2. Gillard will meet NZ PM more often

Prime Minister Julia Gillard has announced she will hold talks with her New Zealand counterpart more often, in a landmark speech to the nation's parliament.

Ms Gillard on Wednesday became the first overseas leader to address the NZ parliament in its Wellington debating chamber.

She had been due to speak to MPs during sitting time but the New Zealand government's plan was vetoed by the Green Party which claimed the move would compromise the country's sovereignty.

Ms Gillard and NZ Prime Minister John Key had agreed to restore the pattern of regular prime ministerial exchanges that had occurred in the past.

She will host Mr Key in Australia next year, and will travel again to New Zealand for the talks in 2013.

Ms Gillard said it was an honour to speak to the parliament.

"Yours is one of the oldest democratic legislatures in the world," she said.

Ms Gillard confirmed Australia would soon begin importing apples from New Zealand, ending a 90-year trade battle between the two nations.

It came to a head late in 2010 when the World Trade Organisation issued a final ruling forcing Australia to open its doors to NZ apples.

Ms Gillard said a promise to accept the ruling made by Trade Minister Craig Emerson would be delivered.

"Australia accepts the verdict of the global umpire and will implement the World Trade Organisation rulings on the importation of New Zealand apples to Australia," she said to loud applause.

Talks on borderless travel project SmartGate were progressing well, with Ms Gillard flagging a joint study to create a "domestic-like aviation experience" between Australia and New Zealand would begin this month.

She and Mr Key also would sign a Closer Economic Relations (CER) investment protocol.

"The protocol will make investment simpler and cheaper, creating employment and opportunity on both sides of the Tasman," Ms Gillard said.

"For New Zealand this agreement provides the most liberalised access to the Australian investment market.

"For Australia, it makes CER our most liberal and comprehensive trade agreement. But as family, that is how it should be."

Talks on borderless travel project SmartGate were progressing well, with Ms Gillard flagging a joint study to create a "domestic-like aviation experience" between Australia and New Zealand would begin this month.

She and Mr Key also would sign a Closer Economic Relations (CER) investment protocol.

"The protocol will make investment simpler and cheaper, creating employment and opportunity on both sides of the Tasman," Ms Gillard said.

"For New Zealand this agreement provides the most liberalised access to the Australian investment market.

"For Australia, it makes CER our most liberal and comprehensive trade agreement. But as family, that is how it should be."

3. Airline innovations, such as the "cuddle class", are often a clever and effective form of attention-seeking, suggests a expert on industry trends.

"It's a way for an airline to be noticed in a cluttered marketplace," says Raymond Kollau, founder of website airlinetrends.com, which monitors new developments in the aviation industry.

"You may never use the particular service that's being written about but you'll probably remember the airline and think of it as innovative - and, therefore, perhaps decide to travel on it."

Kollau cites the example of Emirates Airline, which garnered plentiful publicity globally when it introduced showers for first class passengers aboard its A380s. Very few passengers can afford to travel first class, he points out - but they nevertheless view Emirates positively because of such developments.

Most passengers use ticket price as their main criterion when picking an airline. Low-cost carriers - such as Australia's Jetstar and Tiger Airways, Europe's Ryanair and Asia's Air Asia (with long-haul arm Air Asia X flying to Australia) - win abundant publicity through announcements of deep discounts, $1 fares and even "free" seats.

Airlines are remembered even by passengers who miss out on these deals or who are aware that "free" flights aren't actually free when taxes, charges and ancillary fees are factored in.

In this highly competitive climate, other traditional airlines - known in the aviation industry as "legacy carriers" - are compelled to try harder to win media coverage.

"It's about differentiation," says Amsterdam-based Kollau. "Fierce competition... is forcing airlines to think of ways to stand out.

This especially, but not exclusively, applies to relatively small airlines such as Air New Zealand, All Nippon Airways and Finnair. They don't have the vast networks of the likes of Lufthansa, Delta or Emirates and have to offer something extra."

While Air New Zealand is important in Australia, in world terms it's "a small airline in a small country at the end of the world". At least, that's how airlinetrends.com defines it. What's more, many of its flights are long-haul - such as services to London.

Air New Zealand landed immense international publicity last year when it unveiled its Skycouch innovation, to be available on some London services from April before being more widely rolled out. It's a stunningly simple concept, requiring 22 sets of Skycouch seats (the first 11 economy class rows next to windows). Passengers pay a discounted price for three seats comprising a Skycouch. Armrests fold away and, at the touch of a button, footrests rise level with seats to create a couch - which comes with a pillow and other amenities. The airline says the Skycouch can be used to stretch out while reading or watching movies, for more sleeping space or as a children's play area.

Perhaps inevitably, WAGS nicknamed it "cuddle class" - and publicity resulting from such mischief hasn't hurt Air New Zealand either. According to Air New Zealand, more than 30 other airlines are interested in buying rights to the Skycouch concept after 18 months' exclusivity ends. Aviation analysts suggest that vast publicity pegged to Air New Zealand's Skycoach announcement - boosted by inevitable Mile High Club connotations - will enhance an already-good long-haul reputation even among passengers occupying regular economy seats.

Another airline managing to gain attention through innovation is Finland's Finnair. (The airline doesn't fly to Australia but markets connections through Asia.)

Finnair ensures it is noticed through three strategies:

- Highlighting, particularly in Asia, that Helsinki flights are shorter than those to other European destinations, with good connections. (Asia already provides 50 per cent of Finnair's revenue.)

- Showcasing a classic Finnish amenity by installing saunas in airport lounges.

- Recycling aircraft seat coverings, curtains and even seatbelts as trendy tote bags, toiletry bags and other items to earn money and emphasise "green" corporate attitudes.

Other airlines winning attention for innovations include:

- Virgin America, with a seatback digital shopping platform, allowing shopaholics to while away time by browsing hundreds of products and shopping online. (The airline is also touting an "open tab" system, meaning travellers swipe credit cards only once to buy drinks, movies and items available through online shopping.) Kollau of airlinetrends.com says these are examples of an airline pushing boundaries to surprise passengers.

- KLM, now part of the Air France group, has developed a free iPhone app describing ceramic models of historic Dutch houses (filled with gin-related Dutch genever) that it gives to non-economy passengers - who no longer need to carry scribbled notes reminding them of which they already have.

- Lufthansa touts noise-absorbent carpets and curtains, an innovation poised to spread from first and business classes to economy when aircraft are refurbished.

While big airlines have large marketing budgets, small airlines don't, notes Kollau. So, the latter gain attention by "adding small, passenger-friendly touches to their offerings".

4. Air New Zealand hikes fares as fuel costs rise

WELLINGTON: Air New Zealand said on Tuesday it was lifting air fares by an average three percent to offset the rising price of aviation fuel.

An airline spokeswoman said the increase took effect on domestic, Pacific and trans-Tasman routes on Monday and would be introduced on all other international flights from February 21.

She said Air New Zealand did not have a separate fuel surcharge, unlike some of its international competitors.

Shares in the airline were up 0.72 percent at NZ$1.40 ($1.06) in early trade on an overall market up 0.1 percent.