18 June 2015
A new star for the regions
Jetstar plans to start flights to regional destinations later this year in what will be a major shake-up for domestic air travel. The low cost carrier will use a fleet of five 50-seat Bombardier Q300 turbo-prop aircraft to fly to at least four regional centres initially. Those cities being considered include Hamilton, Rotorua, New Plymouth, Napier and Palmerston North in the North Island and Nelson and Invercargill in the South Island. The new flights will break Air New Zealand's stranglehold on flying large aircraft to regional centres. Air New Zealand shares plunged by close to 10 per cent this morning after the Jetstar move into the regions was tipped by the Business Herald...
Jetstar made the announcement in Auckland today with Prime Minister and tourism minister John Key. The airline said its new flights - due to start in December - would bring "low fares competition to monopoly domestic routes around the country." Jeststar is owned by Qantas whose chief executive Alan Joyce said the time was right to bring Jetstar's fares to the regions. "When Jetstar brought low fares to New Zealand's key routes six years ago it completely transformed the market in terms of value and now we'll do the same for regional New Zealand," he said. There had been calls for more choice and lower fares on regional routes," Joyce said. "We're answering that call by launching Jetstar flights to regional New Zealand, making air travel more affordable for people who live outside the main centres and boosting tourism and the economies of these areas." The new regional destinations would connect to the broader Qantas Group network, including both Qantas and Jetstar flying across the Tasman.
Posted by Steve L at 2:16 PM