Air travel services
An All-of-Government panel of 13 air travel services suppliers representing 16 airlines offer agencies extensive coverage to most corners of the globe.
Key details
Type
All-of-GovernmentLead agency
Ministry of Business, Innovation and EmploymentWhat's covered
The contract benefits apply to flights purchased by an agency for its organisational purposes; this includes purchase of flights for an agency’s customers (such as patients and prisoners), contractors and visitors etc.
The scope of the contract includes flights:
- within New Zealand
- from New Zealand to international destinations
- within and between other countries
- which originate overseas and come to New Zealand (inbound)
The contract scope includes flights for individuals and groups of passengers, although the benefits for each differ.
What’s not covered
Leisure travel: The contract’s benefits are not available for flights that are paid for personally (such as family accompanying a business traveller or a side-trip added to a business trip for leisure purposes).
Travel management services: there is a separate AoG contract for this.
How it works
Once an agency/school has completed the joining process they can begin purchasing from the contract and passenger’s travel is conducted as usual. See using the air travel services contract for what we need to get your school/agency set up.
Using the Air travel services contract
All international travel needs to be booked through a travel management services supplier (TMSS). Domestic travel may be booked either through a TMSS or directly with the suppliers. See the booking travel page for further details.
Features and benefits
The contract offers agencies and schools a panel of suppliers with a range of airfare discounts and a broad range of related benefits. Agencies and schools can use the most suitable airline based on flight schedule, route and airfare price. Travellers can utilise the additional benefits offered such as lounge access and excess baggage discounts during their journey.
Collection or non-collection of redeemable loyalty points continues to be a choice for each agency or school. In addition, there are benefits relating to discounted group travel, flexibility to fare rules, and removal or reduction of some airline fees, which will contribute to agency savings.
No minimum volume spend is required.
For a full list of the contract benefits each airline offers please visit the suppliers page.
Guidance to reduce emissions from air travel:
Savings and costs
Savings
Airfare savings are generated through a range of discounts which are applied to supplier’s standard airfare prices (‘published fares’) at the time of quoting.
The contract will enable agencies to generate savings through:
- increased airfare discounts, compared with the previous contract, for most regions
- applying these discounts to a wider range of airfares (‘fare classes’), including some supplier’s ‘sale’ airfares
- a range of additional benefits, which are outlined on the suppliers page, and
- access to a larger supplier panel which allows agencies to select the best value-for-money airfares ('open skies' purchasing).
Agencies who participate in the Air travel services contract don't need to go through a full procurement process of their own, which saves time, effort and cost.
Costs
Most AoG contracts include an administration fee. This fee is a simple, effective and transparent way of recovering the cost of developing, sourcing, implementing and managing AoG contracts.
For the Air travel services contract the administration fee represents 1.5% of the spend on international tickets. The administration fee does not apply to domestic tickets. The fee is built into the flight price paid by the agency.
Suppliers collect the administration fee and pass it on to MBIE - agencies don't need to make any payments to MBIE.
Dates and renewal details
- Start date:
- Current term end date:
- Contract Terms:
- Four years + three rights of renewal of two years
Renewals left: none
Joining AoG contracts
To be able to purchase from this contract agencies and schools first need to join.
Roles and responsibilities
Each party has responsibilities they must meet as part of every AoG contract.
AoG travel pricing model
The AoG travel pricing model is recognised as best practice and is followed by three AoG travel contracts:
Contract documents
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