Domestic Jetstar rests on certification

A Fairfax report says that much touted speculation that Qantas budget offshoot Jetstar would announce a New Zealand domestic airline service this week turned out to be way off beam because the airline doesn’t have a New Zealand air operator certificate.

Instead the carrier announced from April 28 next year it would fly daily direct from Auckland to Sydney (at 7.15 am) and to the Gold Coast (1.35pm). These flights will complement the carrier’s 28 weekly flights between Christchurch and Australian ports said Jetstar’s new chief executive Bruce Buchanan.

He said the new flights were in addition to the Qantas four times daily flights between Auckland and Sydney and other existing international services.

But he intimated that the mix of services between the two airlines could be reviewed in future, depending on flight demand.

Buchanan said the airline would be making further announcements in February.

It’s widely expected this could include a domestic New Zealand service but it can take up to a year to get an air operator certificate which it will now formally apply for. Jetstar presently flies on an Australia certificate for its Tasman services.

The loser in today’s announcement would appear to be Wellington Airport.

Buchanan said Jetstar was comfortable with its partnerships with Auckland and Christchurch Airports and didn’t have relationships with any other airports in New Zealand. He said the new services would give the airline the ability to mix and match flights with bases at both ports.

To date the carrier has been hiring staff from Qantas’s New Zealand operations subsidiary Jetconnect but will now set up its own New Zealand employer base.

Jetstar takes delivery of six new aircraft in May, June and July which could be used for a domestic New Zealand service.

It also has 65 Boeing 787 Dreamliners on order though the delivery date of the first of these aircraft is continually being put back because of production delays and an industrial dispute.

Buchanan was hopeful the first one would arrive in November next year, giving the airline “the flexibility to deliver long haul.”

“We’ve not decided exactly what we will do next but we had to give some indications [to the Civil Aviation Association] so we could get our air operator certification application underway.”

Buchanan said the new routes out of Auckland will generate another 5000 seats a week on the already over catered Tasman.

“We have to stimulate new travel,” said Buchanan, kick starting the services with an $89 one way fare on the internet for 89 minutes at midday.

“We want to get established on the Tasman with a sizeable presence.”

In spite of the recessionary climate he’s confident there will be demand for the extra services.

He cited jet fuel coming down from its recent high of US$147 a barrel to US$75 today.

He also said Jetstar had strong brand presence, particularly in Sydney and guaranteed it wouldn’t be beaten on price. New Zealand flights would also connect to other destinations such as Bali from Sydney and Japan from the Gold Coast.

A Report by The Mole