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The Air New Zealand Travelcard team have recently completed a review of the Travelcard programme and have made some changes to the Travelcard Terms and Conditions which may affect your Travelcard account.

Please take the time to carefully read through the enclosed copy of the revised Terms and Conditions which will come into effect from 1st of May 2010.

A summary of the key changes is set out below:

1. A late payment fee will be charged on tax invoice/statements that are not paid in full on the 20th of the month following the date of the tax invoice/statement. The amount of the fee is set out in the fee schedule and varies according to the outstanding balance each month (Clause 1.4(iii)).

2. In addition to the Late Payment Fee, Air New Zealand, may charge interest on overdue balances. The applicable interest rate is 3% per annum above the current commercial overdraft rate charged by the Bank of New Zealand (Clause 1.4(iv)).

3. Air New Zealand now sends all tax invoice/statements in PDF format via email. If you wish to receive a paper statement, you will now incur a paper statement fee of $20.00 for each paper statement requested. If you wish to cancel your paper statement please email Travelcardadmin@airnz.co.nz to request. (Clause 1.6).

4. Air New Zealand reserves the right to alter or amend your credit limit (Clause 1.1). Your credit limit can be viewed on the remittance page of your tax invoice/statement.

5. Each Travelcard account will be subject to a minimum spend requirement of $20,000 per annum. Air New Zealand will periodically review the total spend of your group’s Travelcard accounts and may cancel your Travelcard account if this requirement is not being met. (Clause 2.10).

6. Air New Zealand Travelcard has a direct toll free line for you to notify the Travelcard team of a lost or stolen Travelcard. It is important that you notify them immediately so that they can cancel your Travelcard. The Travelcard account holder is responsible for all charges made against the Travelcard and any losses incurred prior to notification except to the extent that such losses have been caused by any negligent or fraudulent conduct of Air New Zealand. (Clause 2.4).

7. Air New Zealand has the right to set-off any amounts due from you against any amounts owed to you by Air New Zealand (clause 1.5).

8. They have clarified the circumstances in which they may terminate your Travelcard account (clauses 3.1 and 3.2).

A full copy of the Terms and Conditions including the schedule of fees are available on the Travelcard page of the Air New Zealand website at: http://www.airnewzealand.co.nz/travel/offerspackages/TC_TandC.jsp .

Any changes to the Terms and Conditions including the schedule of fees will be notified in writing and a revised version will be available on the website.

If you have any concerns, questions or comments regarding any of the changes set out in this letter or in the new Terms and Conditions please either contact your APX Account Manager or email TravelcardAdmin@airnz.co.nz.

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