Air New Zealand chief executive Greg Foran wants the Government to ditch pre-departure testing for people coming into New Zealand.
The next stage in New Zealand's border reopening plan commenced at 11:59pm on Sunday, with vaccinated visitors from visa-waiver countries finally able to enter New Zealand quarantine-free for the first time in over two years.
The first international flight since the border reopened to visa waiver visitors touched down at Auckland Airport on Monday morning.
Air New Zealand flight NZ5 from Los Angeles landed in Auckland at about 5:30am carrying the first wave of tourists.
But anyone coming into the country is still required to complete a COVID-19 pre-departure test and an arrival test on days zero/one and five/six.
Foran said it "adds friction" requiring people to have COVID-19 tests to come to New Zealand and he would like the Government to remove the requirement.
"I wouldn't say it quite as clear cut as saying that pre-departure test is a complete handbrake on people travelling," he told AM host Melissa Chan-Green.
"We are seeing people, certainly very keen to get out and travel and reconnect with friends and family. There is no doubt it does add some friction and that friction is both an inconvenience in having to get something else completed before you travel and then obviously the cost.
"We would much prefer if we didn't have pre-departure testing, either for countries that people are flying to and that isn't in New Zealand's control, but definitely coming into New Zealand, which is in our control."
Tourism Minister Stuart Nash wouldn't commit to a date on when testing requirements would be dropped when asked by AM on Monday, but Foran said it would "certainly help" Air New Zealand plan if he did.
Air New Zealand has partnered with the Government in trialling a new COVID-19 test, which combines the accuracy of PCR tests with the speed of RATs.
The tests are called LAMPs - which stands for Loop-Mediated Isothermal Amplification. They are self-administered and give results within 30 minutes.
The company says they are 98 percent as accurate as high sensitivity PCR tests, but in a fraction of the time.
About 30 Air New Zealand employees will be part of the trial, which will run for about three months.
"So what we have got here is another tool in the toolbox should we require it and we are dealing with another significant pandemic," he said.
"I think it's a wonderful insurance policy, we are keen to be a part of the trial and we are keen to see how it would play out."
Airline prices are currently higher than they were before the global pandemic began, but Foran is optimistic airfares will come down later in the year.
Air New Zealand is also dealing with rising costs just like any other business, but once more airlines ramp up their schedule, prices should come down, Foran said.
"Generally we are very cognizant in keeping our prices very reasonable and that is something we look at and chat about every single day," he told AM.
"It's very hard to predict what will happen with the price of fuel at this stage… as more competition starts to get up and running and prices start to get a bit more regulated in terms of input costs, then I do think we will see prices come down."
Watch the full interview with greg Foran above.