Nelson's Originair cleared for take-off to capital

Nelson airline Originair is gearing up to make its first flight to Wellington this weekend with seats selling steadily, says owner Robert Inglis. The airline will fly between Nelson and Wellington every Monday, Wednesday, Friday and Sunday, commencing on Sunday this week. The standard price for the airfare is $99.

Inglis said sales were as expected.

"We have performed to budget expectations," said Inglis.

Inglis said the airline was giving the Wellington route a "soft" introduction by flying four days per week.

"We'll consider whether we do more after the first month of operations, we haven't been in a position to do a daily service yet," he said.

The new route begins as Jetstar made the announcement it would also join Originair, Air New Zealand and Sounds Air to fly the Wellington route from Nelson Airport. Inglis said he was not concerned by the competition.

"I've noted the [Jetstar] service times are in the middle of the day which I imagine are planned to connect with their Wellington to Sydney services. Our service has only ever been planned for the morning and evening peaks," he said.

The airline commenced a new route between Nelson and Palmerston North last month, which has continued to perform well, he said.

Additional routes for the airline were not on the cards as yet but were not completely out of the question, said Inglis.

"Obviously we would never say never, but it's not on our agenda at the moment."

Jetstar said this month it would begin flying the Nelson-Auckland route on December 1, and Nelson-Wellington on February 1.

Kiwi Regional Airlines plans to begin its services between Dunedin and Nelson and Nelson and Hamilton on October 27.

The increased airline competition sparked a price war at the beginning of the month with Jetstar and Air New Zealand offering a $9 fare sale. Industry and tourism leaders have welcomed the competition, both to keep airfares competitive and to bring more visitors to the region.

  Stuff

JESS PULLAR

Last updated 11:03, September 10 2015

New terminal for Nelson Airport

Nelson Airport is to build a new terminal that will replace the current earthquake-prone building and control tower. The company's board of directors have accepted an independent report that suggests that the current terminal and control tower make way for a new building that can meet the region's future needs.

The Nelson City Council classified the terminal and tower as earthquake-prone with a section 124 notice, and issued a date of June 2024 in which to comply with new building standards.

The airport company is owned by the Nelson and Tasman councils, and details about project costs, design and a project timeframe were expected to be released early next year, Nelson Airport chief executive Robert Evans said.

"In the meantime we will be working closely with all airport users, the Nelson City Council, Tasman District Council and the community to make sure everyone is kept informed about the terminal construction project.

"We will be consulting extensively with the airlines and Airways Corporation (New Zealand's air navigation service provider) to ensure their future needs are accommodated where possible."

Mr Evans said the decision was made after analysing factors around a rebuild of the current facility and building brand new.

"The review was very comprehensive and we received compelling reasons why a new build is the best way to provide an airport of the future that will meet our region's growth aspirations."

Mr Evans said the current terminal was opened more than 40 years ago, but with recent airline announcements and forecast growth for the next 20 to 30 years, it was clear that it needed to be expanded.

He said more than one million passengers a year, and more than 300 flights a week, were forecast for Nelson Airport by the end of 2017.

He recently told Radio New Zealand that the airport played a significant role in enabling economic growth in the Nelson region, which is currently served by Air New Zealand Link, Soundsair, Air2There and lately Originair, which all operate scheduled commuter flights.

Hamilton-based Kiwi Regional Airlines and Qantas-owned Jetstar have confirmed plans to operate flights to and from Nelson.

Mr Evans said increased aircraft movements translated to increased revenue for the company, but the biggest impact was on the community through increased options and more competitive air travel prices.

"We're not here to decide who should fly in or not, we're here to enable others to do business."

The airport precinct also housed 35 aeronautical and support businesses, and a clear plan was needed to steer growth in a less ad hoc manner, Mr Evans said.

The company has regularly posted strong earnings resulting in dividends returned to its shareholders, and ultimately the region's rate payers.

Mr Evans said the board is aiming for $3 million annual earnings before deductions in the next year - a $300,000 increase on the past four years.

Tracy Neal - tracy.neal@radionz.co.nz

Updated at 3:13 pm on 8 September 2015

Nelson Airport to get new terminal

Nelson Airport will be getting a substantial makeover after the company’s board accepted the findings of an independent study that recommended replacing the existing terminal and control tower with a new ‘fit for purpose’ terminal that will meet the region’s future needs.

This study included input from structural and services engineers, quantity surveyors and the lead project consultants Impact Project Management and Studio Pacific Architecture. The board’s decision was presented to Nelson Airport stakeholders last week.

“We asked for a comparison of the costs, project time and inconvenience for airport users, of remediating the current facilities or undertaking a total rebuild,” says Nelson Airport chief executive Robert Evans.

“The review was very comprehensive and we received compelling reasons why a new build is the best way to provide an airport of the future that will meet our region’s growth aspirations.

“Our consultants estimate that a rebuild will be quicker than remediation, and it will also be less intrusive on operations and less expensive. It will provide much greater flexibility in terms of how we are able to use the space available,rather than trying to work around the constraints of the existing building.

Robert says it will be an opportunity to build a terminal that is distinctive and reflects the Nelson region. The current airport terminal was opened over 40 years ago but with recent airline announcements and forecast growth for the next 20-30 years,it is clear that it needs to be expanded.

“By the end of 2017 we are forecasting more than one million passengers with over 300 flights per week. That is extraordinary for a regional destination.”

Nelson Airport expects to provide further details about project timing, total costs and design elements in early 2016.

“We have had some preliminary discussions with Nelson Pine Industries and are excited about the potential to use some of their outstanding products to create a distinctive new terminal which the community can be proud of”

Robert says they will be working closely with the Nelson City Council, Tasman District Council and the community to make sure everyone is kept informed about the terminal construction project. “We will be consulting extensively with the airlines and Airways Corporation to ensure their future needs are accommodated where possible.”

Simon Bloomberg

September 8th, 2015 9:34 am

Air NZ's Grabaseat linking airfare prices to temperatures

Air New Zealand is using morning temperatures to set domestic airfares in September. Air New Zealand is offering more than 4000 fares for the month with prices linked to 9am temperatures. The "Septemperature" fares are being offered through the airline's Grabaseat website.

At least three regional destinations a day will have special fares set according to the destination's temperature at 9am.

Former weather presenter Tamati Coffey was fronting the promotion which started on Monday with deals for Blenheim, Nelson and Dunedin.

With Blenheim's temperature today hitting four degrees Celsius at 9am airfares were set at $4.

Fares of $6 and $3 were offered for Nelson and Dunedin.

Air New Zealand group general manager for New Zealand and Pacific Louise Struthers said this was the first time Air New Zealand had used the weather to determine fare prices.

Air New Zealand has dropped prices on its regional routes as Australian low cost carrier Jetstar prepares to compete on routes to New Plymouth, Nelson, Palmerston North and Napier from December,

JOHN ANTHONY

Last updated 13:47, September 7 2015

New airport terminal confirmed for Nelson Airport

Nelson Airport has confirmed it will build a new airport terminal on its existing site. The Board of Nelson Airport announced on Monday it would build a new terminal, rather than remediate the existing building, to meet the future needs of the region.

Nelson Airport chief executive Rob Evans said the decision to rebuild rather than remediate was the most feasible option in terms costs, project time and inconvenience for airport users.

He said a rebuild was needed to keep up with an "extraordinary" growth in passengers at the terminal over the next two years. Evans estimated by the end of 2017 there would be more than 1 million passengers with over 300 flights per week at the airport.

"That is extraordinary for a regional destination," he said.

The current building is about 40 years old.

The Airport made the decision to rebuild after appointing Wellington-based firms Studio Pacific Architects and Impact Project Management to conduct a feasibility study. The firms began assessments of the airport back in April with input from structural and services engineers and quantity surveyors.

"The review was very comprehensive and we received compelling reasons why a new build is the best way to provide an airport of the future that will meet our region's growth aspirations," said Evans.

Evans said the Airport would provide further details about project timing, total costs and designs in early 2016.

Air New Zealand Group general manager airports John Whittaker said the airline welcomed the announcement.

"We continue to significantly grow capacity on our Nelson services and look forward to working closely with the Nelson Airport Company on the designs and requirements for the future terminal," he said.

The announcement comes as additional airlines take to Nelson skies this year, including Jetstar, which will fly to Wellington and Auckland from December. Originair has also commenced their service to Palmerston North last month and Kiwi Regional Airlines will start flying direct from Nelson to Dunedin, Hamilton and Queenstown at the end of October.

Nelson Airport is currently working with Nelson Pine Industries ahead of the rebuild on potential use of their products. It is also working with Nelson City Council and Tasman District Council as a way to keep the community up to date with the developments.

 - Stuff

JESS PULLAR

Last updated 10:06, September 8 2015

New era of cheaper airfares may be here for good

ANALYSIS: For the 15,000 travellers who picked up $9 regional airfares from Air New Zealand and Jetstar, the price impact of the Australian carrier's New Zealand domestic network expansion was immediate. But the good news is while the $9 airfares are clearly unsustainable for the long term, it is likely regional New Zealand will continue to see cheaper airfares than it has been used to.

Jetstar has added Nelson, Napier, Palmerston North and New Plymouth to its New Zealand domestic routes from Auckland, along with Wellington to Nelson. The first flights will take off in December.

READ MORE: * Nelson 'big winner' in Jetstar move * Jetstar announces new regional routes * Jetstar news a hit with travellers * Dogfight as Jetstar unleashed on Air New Zealand's patch

That puts immediate pressure on prices in those regions but also indirectly keeps the lid on what competitors can charge on other routes.

Take for example the Nelson to Christchurch route.  While Jetstar is not flying that route directly, a traveller can book through Jetstar to travel Nelson to Wellington to Christchurch.

The stopover is a nuisance but one that many travellers would put up with if they could get a much better deal. That in turn limits what Air New Zealand can charge for its route.

Airline prices were already coming down and the introduction of further competition means that will happen even more noticeably.

Fuel prices have dropped a lot over recent years and the airlines have upgraded their fleet to much more fuel efficient aircraft, which keeps their costs down.

Air New Zealand would probably have passed on some of those savings to passengers anyway, but Jetstar's regional expansion means they are compelled to pass on as much of the savings as possible.

How other regional centres not currently on the domestic network fare will be interesting to watch. While domestic airfares have come down already this year, this has not been evenly spread across the country.

Flights to Whangarei and Invercargill from the main centres are notoriously expensive.

If Air New Zealand does not drop its prices on these routes and offers fares that compete with those in the Jetstar routes, will it be accused of taking advantage?

It has made its own adjustments to its regional network over recent months and dropped destinations that it could not make profitable.

Industry commentators have said this was done sensitively and only in areas where another airport was available within an hour's drive.

Air New Zealand has also shared information such as load details with the smaller airlines who have stepped into its shoes.

The key to getting good flight deals on the regional network will be for Kiwi travellers to vote with their credit cards -  to choose a domestic flight over a car trip and expand domestic demand beyond business travel.

The more an aircraft is in the air, and the more seats it has filled, the lower the cost of running a service. If planes are empty or the services are infrequent, it will be hard to keep the price down.

Both airlines want to grow the domestic market to make their investments pay off.

New Zealand travellers are price sensitive and emotions run high in many regions about being connected to the national aviation network.

But the fact is that New Zealand is one of the best-served countries in the world for regional services per head of population, and Jetstar's arrival further enhances the links between the regions and the main centres.

 - Stuff

SUSAN EDMUNDS

Last updated 16:48, September 1 2015

All Blacks make dreams come true on visit to Nelson's Stoke School video

For Riley Weir's seventh birthday all he wanted was for Julian Savea to be at his party.

He wanted it so much he made Savea an invitation and took it by hand from his home in Takaka to the All Blacks last test in Christchurch.

"Him, his brother and his dad went down and he took it with him hoping to see him, so he took it to Christchurch, took it to the game, and then brought it back home," Riley's mother Anna Weir said.

With Savea not playing in Christchurch, Weir tried her luck messaging him on Facebook.

"Riley had a little letter that he sent with it and Julian answered not long ago," she said.

"Then Riley Facebooked him last night and said he was coming over from Takaka and he was hoping to meet him, Julian answered about half an hour later and said: 'Awesome can't wait to meet you'."

The six foot three All Blacks winger also known as The Bus and All Blacks hooker Codie Taylor and prop Owen Franks were met by a crowd of around 150 people at Nelson Airport on Thursday, and were welcomed to the city by Mayor Rachel Reese and a haka from the Nelson College first XV.

But Riley and ten-year-old brother Kegan, who had driven over to Nelson with their grandfather, didn't get lost in the crowd, with Savea finding the bright eyed duo and giving Riley his training top.

"He is quite overwhelmed really," Riley's mother said.

"It's huge for him, because he's a really anxious sensitive little boy, it's just amazing and it's nice to see that the small people matter. And to share it with his granddad is pretty cool as well."

Savea, who was in Nelson with the two other All Blacks visiting Stoke School, said he'd been overseas for Riley's birthday party and wanted to give him something for the occasion.

The three players, who are just two weeks out from heading to the World Cup, spent the day visiting room 11 at Stoke School after the class won a competition for a video they made supporting the All Blacks. The players also visited Stoke Seniors and joined in on an inter-school rippa rugby tournament at Saxton Stadium.

Wherever they went the players were swarmed by small, determined selfie and autograph crazed fans.

Taylor said the attention was more than he was used to, but it was great to get to Nelson and meet all the kids.

"They're the ones that support us and we don't get to go out to the smaller areas as much as we probably should," he said.

"It's a small part of our job and we need to recognise the people that support us."

He said he could remember being an 11-year-old and wanting to wear the black jersey, "watching the likes of Jerry Collins running around, I aspired to be like them and luckily I can say I am now".

Stoke School student George Davies, 11, said it was "awesome to have them here, it's really special".

"Having them here is like meeting a superhero. All of them, Julian Savea, Codie Taylor and Owen Franks - but mostly Julian because he plays my position."

Stoke School deputy principal and room 11 teacher Craig Logan said the kids "absolutely loved it, they were buzzing".

"I was talking to some of the kids when they left and they said we're never going to forget this.

"We'll all be cheering for the All Blacks at the World Cup, but we'll be cheering for these three in particular."

 - Stuff

ANNA BRADLEY-SMITH

Last updated 09:57, September 4 2015

Air New Zealand and Air China to officially band together

Air New Zealand and Air China will launch a new route between Beijing and Auckland this year, as part of their strategic alliance. The two airlines signalled their intentions to enter into an alliance when China’s President Xi Jinping visited New Zealand late a year ago.

“In addition to expanding services, the alliance will mean Air China will actively market New Zealand as a visitor destination”, he said.

Air China Chief Executive Officer Song Zhiyong says the relationship between China and New Zealand is going from strength to strength, with increased economic, cultural and political exchanges in recent years. Air NZ said the alliance would boost access to domestic Chinese cities via Air China’s local network. Both Air New Zealand and Air China are members of Star Alliance, meaning customers will continue to enjoy reciprocal frequent flyer benefits including loyalty earning and redemption and lounge access.

Bridges signed off the alliance after it received Cabinet approval on Monday. Under the alliance Air New Zealand would continue to operate its new Boeing 787-9 aircraft on the Auckland, Shanghai route.

Air NZ will place its NZ code on the new daily Air China flights, which are due to commence on December 10 operated by Airbus A330-200s. “So far, passengers flying from Poland have not been able to travel to New Zealand without at least two stops which has made the journey quite uncomfortable for some of them”.

Air New Zealand and Air China first announced plans to form an alliance in November 2014, and the partnership has now been authorised until March 2021. “Tourists from China recently pushed New Zealand’s annual visitor numbers over the 3 million mark”.

Air New Zealand pulled its direct twice-weekly Auckland to Beijing service in June 2012 after heavy losses, and instead focused on its Auckland to Shanghai route.

Air China is one of China’s Big Three airlines and is based in Beijing.

Dispatch Times

by Newsmediaon September 2, 2015

Air New Zealand Readies For Looming Battles

 Having carved out one of the airline industry’s strongest financial records in recent years, Air New Zealand is well positioned to confront a new wave of competitive challenges both at home and overseas.

CEO Christopher Luxon estimates Air New Zealand is one of only about seven airlines globally that are rated as investment grade, a reflection of its consistent performance. The carrier reported a record net profit of NZ$327 million ($208 million) for the fiscal year through June 30—its fourth consecutive year of earnings growth and its 13th in the black.

Luxon notes the airline’s long run of success has been achieved despite external forces such as economic shocks in the European, U.S. and Asian markets, volatile oil prices, and fluctuating exchange rates. This indicates the airline can continue to prosper despite the latest challenges, he says.

Among the potential threats are financial jitters in China and elsewhere in Asia, an influx of Chinese airline capacity, the impending expansion of Australia’s Jetstar to New Zealand regional routes, and the prospect of American Airlines or Qantas entering the U.S.-New Zealand market.

Air New Zealand is “fitter than it’s ever been, and is in a stronger financial position to be able to fight several battles at the same time,” Luxon says. He notes that dealing with volatility in global markets is an inescapable reality of the airline industry. The carriers that can adapt to new situations the quickest are the ones that will thrive, he says.

Having carved out one of the airline industry’s strongest financial records in recent years, Air New Zealand is well positioned to confront a new wave of competitive challenges both at home and overseas.

CEO Christopher Luxon estimates Air New Zealand is one of only about seven airlines globally that are rated as investment grade, a reflection of its consistent performance. The carrier reported a record net profit of NZ$327 million ($208 million) for the fiscal year through June 30—its fourth consecutive year of earnings growth and its 13th in the black.

Luxon notes the airline’s long run of success has been achieved despite external forces such as economic shocks in the European, U.S. and Asian markets, volatile oil prices, and fluctuating exchange rates. This indicates the airline can continue to prosper despite the latest challenges, he says.

Among the potential threats are financial jitters in China and elsewhere in Asia, an influx of Chinese airline capacity, the impending expansion of Australia’s Jetstar to New Zealand regional routes, and the prospect of American Airlines or Qantas entering the U.S.-New Zealand market.

Air New Zealand is “fitter than it’s ever been, and is in a stronger financial position to be able to fight several battles at the same time,” Luxon says. He notes that dealing with volatility in global markets is an inescapable reality of the airline industry. The carriers that can adapt to new situations the quickest are the ones that will thrive, he says.

Adrian Schofield - Aviation Week Network

Sep 03, 2015

Bacon and eggs welcome Jetstar to region

Marion van Dijk Joseph Stermi, left, Delphi Dixon and Frances Steri enjoy a bacon and egg butty at the TVONE Breakfast Show Jetstar Launch at the 1903 Square this morning.

The sizzling sound of 200 eggs frying and the alluring aroma of bacon proved to be a popular way to welcome airline Jetstar to the region.

More than 200 people munched on bacon butties and sipped coffee at a Jetstar launch event in 1903 Square this morning after the airline announced on Monday that Nelson would be one of four regional destinations it will fly from in December.

Eva Knox of Jetstar marketing New Zealand said the response from Nelson had been positive since the announcement was made.

Eva Knox of Jetstar marketing New Zealand.

"People here are really happy about the announcement, it's a chance to bring more people from Wellington and Auckland to the region," she said.

She said 16,000 airfares were sold across New Zealand on Monday after the airline advertised $9 airfares.

If the cheap fare was missed, Knox confirmed that a standard fare between Nelson and Auckland will be $49, and Nelson to Wellington would be $45.

"It's not about us stealing [market] share, it's about expanding the market and getting more people travelling," she said.

"Nelson is the new Queenstown and it's an amazing gateway to the top of the south."

Nelson mother Delphi Dixon said she was thrilled the airline chose Nelson, especially given her family of nine children frequently visit Auckland.

"My husband has family in Auckland, with nine kids we've just taken the van up to Auckland before but [Jetstar] will make a huge difference she said.

Air rivalry in regions welcome

 Air NZ has indicated it will meet Jetstar head-on. Photo / Mark Mitchell

The landscape is littered with airlines that failed to make a go of servicing this country's regions. Passenger numbers can be erratic and any newcomer runs up against Air New Zealand's strong loyalty programmes, pricing power and capacity. Without decrying our national carrier, the benefits to consumers of competition alone provides a reason to applaud Jetstar's confirmation it will start services to Nelson, Napier, New Plymouth and Palmerston North. Competition between the low-cost Qantas subsidiary and the national carrier on main trunk routes has prompted a drop in fares during the past six years. Travellers to and from provincial centres serviced by Jetstar will benefit from more of the same.

The airline has been looking to challenge Air New Zealand's stranglehold in the regions for a couple of years. Now is an appropriate time given reduced fuel costs and the recovery of Qantas. Jetstar can also use surplus aircraft from its parent's QantasLink operation in regional Australia. In at least one respect, its provincial operation here stands a greater chance of survival than that of its predecessors.

Its regional links will feed into its transtasman operation and Qantas's international partners, such as Emirates. Such linkages are vital, as the collapse of Origin Pacific illustrated.

Origin's fate, and that of others, has made airlines wary of venturing into the regions. Pacific Blue, for example, looked at cherry-picking some routes that it reckoned were under-served, but never did. Jetstar seems to have been reasonably astute in its choice of destinations. It has eschewed the likes of Hamilton, Tauranga and Rotorua, presumably in part because they are on the itinerary of increasingly popular self-drive holidays from Auckland. Instead, it has gone for destinations that are more out on a limb but still have potential for increased tourist numbers and business growth.

The secret to Jetstar making these routes profitable is increased overall passenger numbers, rather than expecting to to cut deeply into Air NZ's patronage. The latter is in exceptionally good health, as evidenced by its record $327 million net profit in the latest June year. And it turned its focus to its regional operations as recently as a year ago after the Prime Minister criticised its fares. This led to some fare cuts, improved capacity to some centres, and withdrawal from three unprofitable routes.

Air NZ has indicated it will meet Jetstar head-on. Last week it said it would slash 2 million flights to below $100 in the coming year. It is also spending $300 million upgrading its regional fleet over the next four years. This, it says, will give it a cost advantage. The challenge facing Jetstar should not be underestimated. Air NZ has done a wonderful job confronting Qantas internationally and its budget subsidiary on main trunk routes.

Jetstar's introduction to NZ was marred by an array of self-inflicted wounds. It is now much more sure-footed, and has been prepared to deliver a vote of confidence in the regions. This infusion of competition is extremely welcome, not least for the provincial centres that will benefit the most.

Current as of 02/09/15 11:19AM NZST

5:00 AM Tuesday Sep 1, 2015

Jetstar expansion in other regions not ruled out

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

The budget airline announced new routes to Napier, Nelson, Palmerston North and New Plymouth yesterday.

• READ MORE: Jetstar names its newest NZ destinations

It also considered Hamilton, Tauranga, Rotorua and Invercargill for the hotly contested routes, and Jetstar chief executive David Hall says valuable relationships forged will continue.

"Don't be despondent, we're going to keep the dialogue open because we're looking for opportunities to further grow in more destinations than we've announced," he told reporters.

Jetstar's commitment to bringing low fares and increased competition to communities around the country was for the long-term, Mr Hall said.

Economic Development Minister Steven Joyce says he's pleased Mr Hall said the four destinations were the "initial" additions.

A sustainable flight network encourages visitors to get off the beaten track, Tourism Industry Association chief executive Chris Roberts says.

"Other regions ... should keep building their cases for Jetstar to service them in future."

Waikato put its case strongly and is disappointed by the decision, Hamilton Mayor Julie Hardaker says.

"We will keep working with Jetstar to get them here."

Rotorua Airport chief executive Nicole Brewer wants to continue discussions with Jetstar and Air New Zealand.

"We are continuing to focus on areas of long-term growth.

"For Rotorua, this means increased capacity, as well as encouraging more travellers to connect via air rather than road to and from Auckland, and a direct link to Queenstown."

If regions really want a strong chance of attracting a Jetstar route - perhaps they need to entice a Jetstar official to live there.

Jetstar NZ head Grant Kerr lives in Nelson, the only one of the new destinations to have routes to Auckland and Wellington.

"I know I've got a big smile on my face about today because I also live in Nelson, so commuting for me is fantastic," he told reporters yesterday.

NZN

TV3 Tuesday 1 Sep 2015 5:28 a.m.

Read more: http://www.3news.co.nz/business/jetstar-expansion-in-other-regions-not-ruled-out-2015090105#ixzz3kX6ef1iI

Read more: http://www.3news.co.nz/business/jetstar-expansion-in-other-regions-not-ruled-out-2015090105#ixzz3kX6XD0WV

Read more: http://www.3news.co.nz/business/jetstar-expansion-in-other-regions-not-ruled-out-2015090105#ixzz3kX6RIc12

Travellers to benefit from new domestic air competition

Kiwi travellers wanting to take advantage of their own backyard could see a prolonged golden period for travel ahead. That is the view of the tourism industry that has welcomed price cuts offered by the two main airlines serving New Zealand's regions, Air New Zealand and Jetstar, a subsidiary of Australia's Qantas Airways.

On Monday Air New Zealand joined Jetstar in a price war for the regions, in offering cheap fares. Jetstar's $9 special fares were on new routes to Nelson, Napier, Palmerston North and New Plymouth.

One tourism boss said it was possible the country would experience a golden period for travel ahead, while another said New Zealand had probably never seen this level of activity in new airline services.

However there was a warning that cheaper air tickets would only remain as long as fuel prices remained low. Aviation fuel like other commodities has weakened during the last year.

One aviation website has called 2015 a year when everyone can make money given the fuel price slide. Certainly some airlines are doing well.

Earlier this month Air New Zealand announced a record annual net profit of $327 million. Chief executive Christopher Luxon said lower fuel prices and more seats would lead to cheaper flights. The airline would offer more than two million domestic fares for less than $100 over the next year, Luxon said at the profit announcement.

Tourism Industry Association New Zealand chief executive Chris Roberts said there was no reason, apart from changes to fuel, that cheaper flight ticket offers should not last for Kiwis with Jetstar in for the long haul on its low budget approach.

"Certainly there is an expectation (ticket prices) will come down, and allowing for any other external factors such as fuel prices, remain down," Roberts said.

"Certainly the signs are from Jetstar and the model they run, that they run a low cost service. Air New Zealand has welcomed competition and says it's able to respond so I think there will be more cheap fares available across both airlines for the travelling public."

Christchurch and Canterbury Tourism (CCT) spokeswoman Caroline Blanchfield said it could be a golden period ahead for domestic travellers, and international tourists would also be able to pop around New Zealand more easily. Business travellers would also benefit.

"We've (CCT) got a focus on this domestic travel and we think the more Kiwis moving around their own country the better it is," Blanchfield said.

"The old saying is 'don't leave home till you've seen the country' ... rather than jump on a plane and go to Australia. But there are so many things you can do in."

Blanchfield said she had just spent two days on New Zealand domestic activities like jetboating and quad-biking while hosting a group of professional conference organisers on what sights and venues were available in the South Island. Those organisers in turn could bring extra business tourism into centres like Christchurch for the benefit of the regional economy.

The potential for a longer period of reduced prices came after a period of "expensive" tickets on some routes. "People only buy what they can afford ... so any competition is healthy."

That lower prices could last was being demonstrated by Air New Zealand's long running grabaseat deals, Blanchfield said.

Roberts said the airlines would have to be careful not to get into a price war situation. When Qantas and Virgin Australia had competed vigorously on some routes across the Tasman in 2013 and 2014 both airlines had seen "heavy losses" within their regional operations.

"That market's now settled down and there is still good competition and reasonable fares available ... (but) they're not killing themselves."

Towns such as Invercargill that had missed out on Jetstar's New Zealand regional expansion into centres like Napier and Nelson, should not give up the fight, and keep building a case why a new service would be patronised, Roberts said.

"We've seen incredible growth (for consumers) in the last six months. It's not only Jetstar, there's other airlines that have expanded to take over the routes Air New Zealand is dropping. (Also) there's returning airlines like Origin, new airlines like Kiwi, we've probably never seen this level of activity."

Jetstar chief executive David Hall said Jetstar would continue to look for opportunities within other regions, but would not give a timeframe for any further new services. "The ones we've chosen this time around, and I say our initial launch, have very much been ones we believe that we can grow very quickly, can stimulate with low fares."

 - Stuff

ALAN WOOD

Last updated 16:15, August 31 2015

'There's a lot of risk': Jetstar's new domestic routes will have a hard time taking off - commentator

•  

Mon, Aug 31

       

 

A leading aviation commentator is sceptical demands for Jetstar's new domestic routes will take off.

Price war breaks out as Jetstar takes on Air NZ at home

02:20

Consumers are the big winners in Jetstar's NZ domestic expansion. Source: ONE News

Today Jetstar announced you can fly return to Auckland from Nelson, Napier, New Plymouth and Palmerston North plus a return route between Nelson and Wellington.

But aviation commentator Peter Clarke says the flights to Auckland and Wellington do little to connect between the regions.

"I think there is a lot of risk in New Zealand. In regional New Zealand there's a downturn. It's quite severe in some of the rural areas. Air New Zealand's pulled out of some areas".

But the government welcomes Jetstar's new flight routes.

"It fits in with the promotion of tourism, economic development and moving people into the regions", says Economic Development Minister Steven Joyce.

Air New Zealand is offering rock-bottom domestic fares hot on the heels of Jetstar's announcement of the four new domestic routes.

The national carrier was offering the $9 one-way fares on 22 different flight routes across the country on grabaseat website today.

Earlier today Hamilton's mayor said people living in the Waikato would be upset Hamilton was not named in Jetstar's domestic destination announcement.

Julie Hardaker said she was very disappointed by the decision and she would continue fighting for Jetstar to include Hamilton as a destination.

"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," Ms Hardaker said.

Ms Hardaker said she believes being situated rather close to Auckland Airport and having an easier route network were factors in why Hamilton was not chosen.

---

Jetstar announcement thrills Nelson business leaders

Nelson civic and business leaders have reacted with delight to news that Jetstar is coming to Nelson, ushering in a new era of competition and cheaper flights. Locals are also planning to capitalise on the new low cost routes.

The airline announced this morning that it would begin flying Nelson-Auckland in December and Nelson-Wellington in February as it enters the regional market.

With Originair already flying Nelson-Palmerston North and soon to move into the Wellington market, and Kiwi International promising cheap domestic flights when it takes off, regional air travel looks set more competition for passenger dollars than ever before.

Nelson Airport chief executive Rob Evans said the announcement was "the game-changer for regional New Zealand and particularly for Nelson".

"We've been the big winner, we've got both Auckland and Wellington in the initial phase, the only destination to have two new routes."

He said Jetstar would fly 27 Auckland-Nelson  flights a week from December 1 this year, and 21 Nelson-Wellington flights  from February 1 next year.

That equated to 249,500 new seats in and out of Nelson over 12 months.

"It's a huge investment from their perspective.

"We've got the capacity we've been demanding and the cheaper air rates, we've now got to jump on board and use them."​

Evans said Air New Zealand was "a magnificent airline" with a lot of capacity and a good loyal customer base, and would respond to the challenge.

"This is good for the consumer."

He said the announcement gave the airport company the impetus it needed for its plan to redevelop or replace the 40-year-old Nelson Airport.

Nelson MP Nick Smith said it was "fantastic news" for Nelson, which depended on its links with other parts of New Zealand.

"Studies show that on average air fares are 30 per cent less where there is effective competition and that amounts to millions of dollars of savings and thousands more visitors to Nelson."

Smith said the Jetstar's link was important to the visitor industry but the biggest gain for Nelson was making nationwide businesses viable in Nelson and for people to be able to easily connect across the country through more competitive air services.

He was "pretty loyal" to Air New Zealand, a good company that deserved credit for its substantial investment in maintenance services in Nelson.

"But I still believe the region's overall benefit is in having a choice of services," ​Smith said.

Nelson Tasman Tourism  chief executive Lynda Keene said the increased competition was "really great news"' for Nelson and Tasman residents.

Grandparents who travelled  once a year might be able to go three or four times.

"It's definitely going to open up a lot more opportunities."

It was also really exciting from a business perspective, she said.

"We're really fortunate to have a lot of frequency with Air New Zealand which has been a wonderful contributor to the region, but Jetstar coming in is going to make it a bit easier for people coming out of Auckland, Wellington or Christchurch, particularly for trans-Tasman services."

With Originair and Kiwi International joining the regional competition, "it's raining planes", Keene said.

Nelson Mayor Rachel Reese said the city had got behind the campaign to bring Jetstar to Nelson and many  people would be celebrating the news, which would bring a significant economic benefit for the region.

All agree that Jetstar will face stiff competition from Air New Zealand, which announced last week that it will slash two million flights to below $100 over the next year.

Nelson's once-thriving regional airline Origin Pacific went under in 2006 owing $21 million. Brutal competitive tactics by Air New Zealand were widely blamed. More than 200 staff lost their jobs.

The announcement adds further heat to the Nelson air travel market with Originair having started on the Nelson-Palmerston North route earlier this month, and Kiwi Regional Airlines announcing it will be offering $79 tickets from Nelson to Hamilton and Dunedin from October 28.

Joy Davenport said on Facebook that the announcement would not stop her from flying Air New Zealand.

"But with a little competition, I'm hoping the prices of flights will come down."

 - Stuff.co.nz

BILL MOORE

Last updated 15:58, August 31 2015

Jetstar names its newest NZ destinations

Jetstar's new flight destinations have sparked a price war.

The budget airline announced today its adding flights to Napier, New Plymouth, Palmerston North and Nelson.

The four regional centres were chosen from a shortlist of seven destinations, with Rotorua, Hamilton and Invercargill missing out.

Air New Zealand followed suit offering $9 national fares on "grabaseat".

The national airline has said it won't be undercut in its home market.

Last Wednesday it said it would offer up to two million domestic fares under $100 and boost domestic capacity eight per cent this year.

"We are confident of our ability to stimulate the economy to fill those seats," chief executive Christopher Luxon said.

"We don't lose to Australians at home."

Transport Minister Simon Bridges and Economic Development Minister Steven Joyce were at Wellington Airport this morning where the announcement was made.

Jetstar will fly the Nelson-to-Auckland and Napier-to-Auckland routes from the beginning of December.

While New Plymouth-to-Auckland, Palmerston North-to-Auckland and Nelson-to-Wellington flights will take off from early next year with the first flight on February 1.

Jetstar Australia and New Zealand chief executive David Hall says the company's New Zealand management went to eight centres to make their decision.

"The feedback we’ve received from local councils, airports, economic agencies, businesses, and the tourism and travel trade has been invaluable in helping us to choose our first four destinations," he says.

Mr Hall says the four centres will help grow the market. It will also create 100 jobs for pilots, cabin crew and ground crew.

Despite Hamilton, Rotorua, Tauranga and Invercargill missing out this time, Mr Hall says the company will keep talking to stakeholders because they all want more airline competition.

Mr Bridges says the competition will help bring flight costs down for the regions and will be a boost for the regional aviation market.

The Qantas subsidiary currently flies Airbus A320 jets to Auckland, Wellington, Christchurch, Dunedin and Queenstown.

It will use five 50-seat Bombardier Q300 turboprops on the new routes.

The airline has a 17 percent share of the New Zealand domestic airline market, which is dominated by Air NZ.

Nelson Mayor Rachel Reese says the new route will open the city up to more domestic passengers, businesspeople and tourists.

"We encourage people from around New Zealand (and the world) to take the opportunity to come and visit our corner of the world. They may not want to leave," she says.

Business Central chief executive John Milford hopes the new routes and the extra people they bring to central New Zealand will help bring new businesses to the regions.

He thanked Jetstar for "showing great faith" in the regions.

Meanwhile, Labour says the Government should book their airfares like most other New Zealanders – by booking the "best fare of the day".

Transport spokesman Phil Twyford believes this would save money for taxpayers, while boosting services to regional New Zealand.

"Our heartland towns have a lot to gain from Jetstar's new services announced today and the Government could do its bit by pledging the tens of millions of dollars it spends annually really do go to the airline offering the best price.

"I challenge the Government to make the most of it – starting with a plan for public servants to always buy the best fare on the day."

Jetstar is launching the new routes with special one-way $9 fares. The airline's website briefly went down this morning following the announcement.

3 News / NZN

Great support for Nelson here from Mayor Rachel Reese  http://www.3news.co.nz/business/jetstar-names-its-newest-nz-destinations-2015083109#ixzz3kX0NTDCC

Air NZ joins $9 price war, Jetstar announces new NZ routes

Bargain hunters snapped up more than 15,000 airline tickets at $9 each on new regional routes announced by Jetstar, during a four-hour sale on Monday.

Air New Zealand hit back, releasing hundreds of $9 fares to and from Hamilton, Rotorua, Tauranga and Invercargill, which it said had been "left out" of Jetstar's plans..

Jetstar held its sale to promote the expansion of its network to Nelson, Napier, Palmerston North and New Plymouth, in what pundits believed could herald the start of a price war.

The sale was originally due to run until 1.30pm, but the airline extended it for two hours after a computer server crashed, leaving frustrated travellers unable to buy tickets when the sale first opened.

Spokesman Phil Boeyen said the server crash appeared to be a case of "unfortunate timing".

The low-cost carrier announced the new routes between the regions and Auckland on Monday, with the Nelson flights also going to Wellington.

It has since moved on to "the second stage" of its sale, which runs until midnight on Tuesday, offering tickets on the regional routes in December, February and March priced at $25.

'It's raining planes'

Nelson was the big winner as it was the only centre with two destinations – Wellington and Auckland.

Nelson Mayor Rachel Reese said she had kept the announcement secret for 36 hours.

"You can hear the people cheering from Trafalgar St," she told a crowd at Wellington Airport.

Wellington Mayor Celia Wade-Brown said there was now more reason to extend Wellington's runway as people from the top of the South Island now had more opportunity to fly to Wellington then elsewhere overseas.

Nelson MP Nick Smith said it was "fantastic news" for Nelson, an isolated region that depended on the strengths of its links with other parts of New Zealand.

"Studies show that on average air fares are 30 per cent less where there is effective competition and that amounts to millions of dollars of savings and thousands more visitors to Nelson."

Smith said the Jetstar link was important to the visitor industry, but the biggest gain for Nelson was making nationwide businesses viable in Nelson and for people to be able to easily connect across the country through more competitive air services.

​"With house prices going through the roof in Auckland there is an opportunity for us to attract businesses to our region."

He was "pretty loyal" to Air New Zealand,  and said it deserved credit for its substantial investment in maintenance services in Nelson.

"But I still believe the region's overall benefit is in having a choice of services," ​Smith said.

Nelson Tasman Tourism chief executive Lynda Keene said the increased competition was "really great news" for Nelson and Tasman residents.

"Grandparents who might go to Dunedin, Auckland or Christchurch once a year might be able to travel three or four times a year. It's definitely going to open up a lot more opportunities."

It was also really exciting from a business perspective, she said.

"We're really fortunate to have a lot of frequency with Air New Zealand which has been a wonderful contributor to the region, but Jetstar coming in is going to make it a bit easier for people coming out of Auckland, Wellington or Christchurch, particularly for trans-Tasman services."

It would also make international travel more accessible through Jetstar's links with Emirates.

With Originair and Kiwi  Regional Airlines joining the regional competition, "it's raining planes", Keene said.

'It's only good news'

Palmerston North mayor Grant Smith said the announcement was welcome for the city and the region.

"The region will get lower fares and it will also help people who otherwise couldn't travel."

Smith expected the move to give tourism in the region a boost and help retailers and agribusiness as well.

"Attractions like the [Manawatu] Gorge and the Tui brewery will become more accessible."

New Plymouth Mayor Andrew Judd also said Jetstar's expansion was great news.

"Having both Air New Zealand and Jetstar operating out of New Plymouth will give passengers more choice and more opportunity to afford to fly, and give visitors even more reasons to come here," Judd said.

The New Plymouth District Council was already planning extensions at the airport's terminal, runway apron and public car park, with construction due to start in May next year.

Some disappointment

But some southern leaders were disappointed Invercargill was not a new destination.

Southland District Mayor Gary Tong said he was not involved in the consultation with Jetstar, and it was disappointing the airline had chosen not to come.

But he was hopeful Jetstar would consider Invercargill again.

"There are certainly the numbers [of people] coming south."

Venture Southland chief executive Paul Casson said although it was disappointing, other airlines might be interested.

"Visitor numbers look good for the next few months ... there may be other airlines who want to fly into our region."

Jetstar had made a commercial decision to support smaller regions than Southland, he said.

"Luckily we've got Air New Zealand, and they're very good to us, which we've seen last week in a reduction of fares."

'Very competitive process'

Economic Development Minister Steven Joyce and Transport Minister Simon Bridges welcomed increased competition in the regional aviation market.

Transport linkages are crucial for regional development and the new air linkages would help boost business and tourism traffic into regions like Taranaki, Hawke's Bay, Nelson and Manawatu/Whanganui," Joyce said.

"I know it's been a very competitive process between the different regions for the opportunity to host the new carrier. I'm confident that this expansion of regional routes will be successful and lead to more competition on regional routes in the future," he said.

The first of Jetstar's fleet of five regional 50-seat Bombardier Q300 aircraft to service the routes arrived in Wellington over the weekend.

Jetstar will face stiff competition from national airline Air New Zealand, which announced last week that it will slash two million flights to below $100 over the next year.

The announcement came as Air New Zealand celebrated record profits of $327 million in the year to June 30.

Air NZ chief executive Christopher Luxon said lower fuel prices and more seats would drive down costs for fliers.

House of Travel commercial planning director Brent Thomas said competition from Jetstar also played a part.

 - Stuff

TOM HUNT, SUE TEODORO, BILL MOORE, TOM PULLAR-STRECKER AND BLANTON SMITH

Last updated 17:02, August 31 2015

Jetstar news a hit with travellers

Regional air fare wars have begun with Air New Zealand moving within hours to match Jetstar's announcement of a $9 ticket sale to destinations including Nelson. Business and civic leaders predicted on Monday that Jetstar's move into regional routes would provide benefits for consumers and that was quickly borne out.

Demand was so great that Jetstar's website crashed, and it it extended its planned four-hour sale well into the afternoon.

READ MORE: * Nelson 'big winner' in Jetstar move * Jetstar announces new regional routes

The excitement is set to continue in Nelson with a special public breakfast at the 1903 site opposite the Church Steps on Wednesday to be broadcast by TV One.

And new airline Kiwi International has weighed in with a claim that it will be "the best bet for regional direct flights".

Jetstar unveiled its plans at 9am on Monday, saying it would begin flying the Nelson-Auckland route on December 1 this year and Nelson-Wellington on February 1 next year.

As well as the Air New Zealand response, it prompted a flurry of mostly positive comments on the Nelson Mail's Facebook page, although a few people complained of poor experiences with Jetstar in the past.

The news was also welcomed by Nelson Tasman Chamber of Commerce chief executive Dot Kettle, who said the chamber shared and supported Jetstar's growth aspirations for the region.

"Many of our members will be delighted with this news," Kettle said.

The chamber recognised the potential in additional capacity and competition, leading to increased travel and growth of business in and out of the region, including greater options and choice around connecting to offshore markets.

"We are impressed by the Australian experience where airline competition has delivered evidence of growth," Kettle said.

Nelson Tasman Tourism is calling for as many residents as possible to join in the Jetstar celebration and have a free breakfast "on live TV".

As well as bacon butties and hot drinks, there will be quizzes, competitions and free merchandise, with the chance to win $1000 in Jetstar travel.

Start time is 6am and the organisers want people to arrive on time for the live TV crosses at 6.10 and 6.40.  The event will continue until 9am.

Meanwhile Kiwi Regional Airlines chief executive Ewan Wilson said he was pleased that Jetstar was connecting "a handful" of regional centres to Auckland and Wellington.

"But we note that still  none of the big airlines are offering region to region direct flights, like Kiwi is.

"Kiwi Regional Airlines' pledge to regional centres in our country is that we will always put their needs first when considering future routes."

The company's first aircraft was due to arrive in Hamilton from Europe today,  Wilson said.

Flights would begin on October 27 and include twice daily direct services between Dunedin and Queenstown, and four return flights a week between Dunedin and Nelson, and Nelson and Hamilton.

With Nelson-based Originair already flying Nelson-Palmerston North and set to begin a Nelson-Wellington service, and Sounds Air adding extra flights to its well-established Nelson-Wellington route, the region is set to enjoy the most competitive airline market it has ever experienced.

Origin Pacific went head-to-head with Air New Zealand on domestic routes in the early 2000s with residents and visitors benefiting from their struggle for dominance.  Tough Air New Zealand tactics eventually vanquished Origin Pacific and it collapsed in 2006 with the loss of more than 200 jobs, and $21 million in debts.

Air New Zealand is expected to take similarly hard stand against Jetstar but some commentators are noting that it will be a more even contest this time, with the newcomer being a wholly-owned subsidiary of Qantas, set up to service the budget market.

 Bill Moore

Last updated 09:34, September 1 2015

 - Stuff.co.nz

Kiwi REGIONAL Airlines - still the best bet for regional direct flights!

New Zealand-owned Kiwi Regional Airlines has restated its support for regional direct flights in the wake of Jetstar's announcement of flights connecting a handful of regional centres to Auckland and Wellington. Chief Executive Ewan Wilson said today, "We are pleased that fliers from these centres now have more choice when connecting with Auckland and Wellington, but we note that still none of the big airlines are offering region to region direct flights, like Kiwi is."

"We also feel for large regional centres like Hamilton, Invercargill, Tauranga, Rotorua and Queenstown who have missed out even on flights to the major cities."

"Kiwi Regional Airlines' pledge to regional centres in our country is that we will always put their needs first when considering future routes."

Wilson said that his company's first aircraft, which arrives tomorrow in Hamilton from Europe, includes both Hamilton and Queenstown in its first route."

"For future routes, Kiwi is already considering how we could service Invercargill, Tauranga and Rotorua, and we will talk to those cities about developing a working relationship."

Kiwi Regional Airlines flights commence on 27 October, and include twice daily direct flights between Dunedin and Queenstown, as well as four return flights weekly between Dunedin and Nelson, and Nelson and Hamilton.

Ewan Wilson CEO Kiwi Regional Airlines

Jetstar boss - this is not about revenge

He won his last fight with Air NZ, but the next round will be tougher. Grant Bradley talks to an aviation leader with high-flying goals.

Today, Jetstar New Zealand boss Grant Kerr will be in a classic car hurtling around a track near Taupo at 200km/h.

The car enthusiast this year learned to race a mate's 1967 Alfa Romeo GTV, and says it clears his mind.

"I guess it's about being able to take your headspace somewhere away from your normal working day," he says.

"You get in that car, you're doing 180-200km/h, you're not thinking about work. You're thinking about the corner you have to get around."

For Kerr, there's a lot to think about right now.

His airline is about to embark on one of the country's biggest moves in domestic aviation in a decade, taking on Air New Zealand in its regional stronghold.

He is about to announce the four new destinations - out of eight that were in the running - and gearing up his airline for major expansion, hiring as many as 100 extra staff.

Kerr - a "Kiwi with an Aussie accent" - started as Jetstar's NZ head after a bruising departure from his former employer, Air New Zealand regional subsidiary Air Nelson.

When he quit at the end of 2012, he was put on gardening leave for six months, but became embroiled in litigation when his former employer tried to push his start date at Jetstar out for the rest of the year.

It ended up in the Employment Court, where Kerr won. In conflicts of evidence, his version of events was preferred by the court and the judge praised him as "particularly impressive and patently honest". But it was a draining ordeal.

"As I look back now, it's good experience to have behind you - it's not something you'd volunteer to do every day."

So is there a tinge of revenge in taking on Air NZ in its lucrative provincial heartland? "Not at all; look, I've moved on," he says.

At a function this month he enjoyed banter with an Air New Zealand executive involved with his case.

But in leading the charge to take on Air New Zealand at its own game, he has poked a bear and the response has already been strong - the rival's lead-in fares have already plunged.

In the travel industry, Kerr is known as one of the good sorts - Air NZ chief executive Christopher Luxon describes him as a lovely guy - but he won't shy away from a tussle. He's gregarious but doesn't chase the spotlight. While warming up for an interview in a cafe near Jetstar's Auckland Airport check-in (no plush executive offices there) he frequently punctuates a sentence with a laugh.

Kerr spent his first 28 years largely in the Outback town of Cunnamulla, population 1200 or so, about 750km west of Brisbane and there's the hint of Aussie larrikin about him. His favourite film is The Castle, he likes a good red wine and despite racing in the Alfa, he's a serious Holden man. He has a 1963 EJ Holden ute (mint colour and condition) and a 1969 Holden Monaro, silver mink in colour.

While he's an adopted Kiwi, he just can't shake supporting the Wallabies.

"I feel I'm accepted in New Zealand but I do struggle from time to time with the rugby," says Kerr.

He arrived 16 years ago for what he thought was a year-long job expanding an electricity lines maintenance company from Queensland. But as a mate predicted, he found a New Zealand woman (Karen) married her and stayed.

He loves the recreation opportunities. Besides his new-found love of car racing, he's keen on mountain biking and is looking forward to a big trek into the Nelson hinterland.

The Energex lines company expansion into small New Zealand towns was a warm-up for Kerr's next moves with Jetstar. He has returned to Nelson to live, and says his rural background helps him understand the needs of places in the running for Jetstar flights.

"I come from the Outback ... so going into these areas it's great to interact with people - they're down to earth and that's me."

Kerr and three other Jetstar staff have just been around the centres bidding for regional services: Hamilton, Tauranga, Rotorua, Napier, New Plymouth, Palmerston North, Nelson and Invercargill.

He says it's been nice to feel so welcomed and he has been impressed by the energy and the diversity of the communities.

"If I had enough aircraft I'd like to go to all eight of them."

Economic potential and the ability to support two airlines are the main criteria for choosing the destinations, to be served by five 50-seater Bombardier Q300s, with the first flights planned for this year.

"For us to go into the regions, we have to know how we can bring growth. It's not about going in and taking a part of the pie that's already there."

The Jetstar executives have been welcomed in the regional towns they've visited, but flying 1.7 million people a year around New Zealand is always going to involve the odd snag. Jetstar started flying domestic routes in 2009 and was roasted for poor punctuality and other slip-ups during its early years.

But it now has a fleet of nine Airbus A320s for its domestic and short-haul international operations and has a schedule enabling it to fly on schedule 90 per cent or better.

Slip-ups happen, and Kerr says that when the airline is at fault, that's when he takes it personally.

"I don't get frustrated for myself, I get frustrated for the customer."

Last week he was holding the Jetstar hotline for Australasia, a job rostered among senior executives to deal with any major issues. It was a quiet week, his only call being a 3.30am briefing on the bombing in Bangkok.

He's now been in the Jetstar job for two years and two weeks.

"It has flown. I look back and think has it really been two years? It's been sensational."

Q&A

Career highlight? Starting Jetstar regional services.

Personal highlights? Organising a 1000km cycle ride from Brisbane to my home town of Cunnamulla to raise funds to fight cancer. A drive across the Simpson Desert in 1984, plotting my own track.

Book you're reading? Open: An Autobiography by Andre Agassi.

Favourite movie? The Aussie classic The Castle.

Dream holiday destination? To visit one of South Africa's game parks. To see the wild animals in their natural habitat would be fantastic.

Best flight? While working as a linesman flying in a small plane around the Outback, checking hundreds of kilometres of lines at power pole height.

Best advice? From a really good friend of mine - life is short, we're here for a short time, so let's enjoy it.

- NZ Herald