Jetstar exiting New Zealand regional market
Jetstar is planning to scrap its regional New Zealand routes.
Jetstar CEO Gareth Evans said the airline is ‘facing some headwinds,’ notably high fuel costs and shrinking demand.
"We don’t see the outlook changing any time soon," Evans said.
"We have given it a real go. However, despite four years of hard work our regional network continues to be loss-making."
Evans said it lost A$20 million on the five domestic NZ routes in the financial year ended June 30.
Jetstar plans to end Auckland services to Nelson, Napier, New Plymouth and Palmerston North, as well as the Wellington-Nelson route from December.
Jetstar says it won’t affect international flights to and from New Zealand.
"Alternative employment options would be available for all affected Jetstar regional employees – made up chiefly of pilots and cabin crew – across Jetstar and Qantas Group businesses in New Zealand and Australia," a company statement said.
Air New Zealand will help impacted customers with discounted fares and will freeze prices on its lowest economy fares until the end of 2020.
"It does underscore how difficult it is flying in regional New Zealand," Air NZ CEO Christopher Luxon said.
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