Qantas To Launch Low-Cost Brand In NZ

February 17, 2009

Australian national carrier Qantas said on Tuesday it would launch its low-cost brand Jetstar into the New Zealand domestic market, replacing its primary brand.

With the introduction of Jetstar, the airline will reduce the frequency of flights, although overall capacity would be expanded because it would use larger planes.

Jetstar will replace Qantas from June 10 this year, flying between the main cities of Auckland, Wellington and Christchurch, as well as the popular tourist destination, Queenstown.

Qantas said it would also boost capacity on the fiercely competitive trans-Tasman route between New Zealand and Australia.

The domestic market is dominated by New Zealand's national carrier, Air New Zealand, with Virgin Blue subsidiary Pacific Blue also offering low-cost services.