Australian low-cost carrier Jetstar Airways is to enhance domestic and international links to Queenstown, a resort town in Otago in the south-west of New Zealand's South Island. The budget carrier has confirmed it will introduce a daily flight from Wellington from December 22, bringing additional competition to the domestic market. This route is currently served by Air New Zealand with a daily ATR 72 flight.
An estimated 61,000 O&D passengers travelled on the route in the past year, with the Air New Zealand passengers each paying an average one-way fare of $203 on the direct service. Interestingly, Jetstar already holds a 12 per cent share of this market with passengers using its existing flights to Queenstown from Auckland and Christchurch to secure lower fares of around $74 each way from Wellington. The introduction of the new direct Jetstar route will certainly result in a reduction of market wide average fares, which currently stand at $188, as capacity in the market more than triples.
“We are thrilled that Jetstar is launching a new route from Wellington to Queenstown. Competition on any route is exciting for passengers, providing new flight options and competitively priced fares” said John Howarth, Chief Executive Officer, Wellington Airport.
Further expansion in the Queenstown market will take place through an increase in international Jetstar flights. A twice weekly link to Sydney will be introduced from December 23, while a third weekly rotation will be added to Melbourne. The budget carrier believes its low-fare strategy will help it establish itself in these new markets and enhance its share of the domestic New Zealand and Trans Tasman markets.
“Jetstar’s fares are consistently low, which makes it easier for people to travel and leaves them with more money to spend when they arrive,” said David Hall, Chief Executive Officer, Jetstar Australia & New Zealand. “As we keep expanding our network in New Zealand, and in fact right across the Asia Pacific region, we see our low fares enable people to travel more often. It shows the ability we have to put more tourist destinations and more visits to friends and family within reach.”
The low-cost carrier currently holds a 28 per cent share of the Melbourne – Queenstown market, a total estimated market of 46,000 O&D passengers. Its average fares are around 50 per cent of those being charged by Air New Zealand, which dominates the route with a 50 per cent share. Jetstar will be the fourth airline to offer direct flights between Sydney and Queenstown, a market of an estimated 98,000 O&D passengers.
Related Content
