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Price war on after Jetstar announcement

Jetstar has added Nelson, Napier, Palmerston North and New Plymouth to its New Zealand domestic routes from Auckland, along with Wellington to Nelson.

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Kiwi Regional Airlines is a new operator that will begin flights by the end of October to Dunedin, Queenstown, Nelson and Hamilton.

David Hall, Jetstar chief executive Australia and New Zealand, said Jetstar will offer $9 one-way regional fares between 9.30am and 1.30pm today for travel at certain times from December through to June.

Jetstar hasn’t ruled out flight paths to other parts of New Zealand.

It will use five 50-seat Bombardier Q300 turboprops on the new routes, charging $NZ45-$NZ49 base fares. The low cost carrier’s fleet of nine Airbus A320 aircraft operate up to up to 250 domestic and 100 global flights a week.

“When placed in context with other projects, such as the rural broadband initiative, now in its second stage, and the focus on the mental health and well-being of rural communities by a range of agencies and organisations, the future looks brighter for rural New Zealand”, says Mr Kelly.

He said while only four destinations have been chosen, the airline will continue talking with stakeholders in Hamilton, Rotorua, Invercargill and Tauranga because they’ve all expressed a desire for airline competition and support Jetstar’s low-fare model. “We are also the gateway to some of New Zealand’s biggest tourist attractions”.

“We will keep working with Jetstar to get them here, as competition in the domestic market is essential for fare pricing and flexibility of travel options” says Mayor Hardaker.

Meanwhile, the Labour Party is looking for government department buy-in to Jetstar’s broader role in regional air routes.

“We’ve timed our schedule to be great for business people in the regions”, Mr Hall said.

The additional capacity comes on top of an estimated eight per cent growth in available seats from Air NZ in the coming year. The national airline has said it won’t be undercut in its home market.

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The more an aircraft is in the air, and the more seats it has filled, the lower the cost of running a service. Qantas had considered selling the five Q300s, which were no longer needed in the Australian market after changes to its regional flying, before deciding to deploy them in NZ.

A Jetstar Q300 turboprop at Wellington Airport