Jetstar to fly Nelson, Napier, New Plymouth and Palmerston North

Media Release Jetstar announces low fares to four new regional destinations, five routes

• Flights on sale now to Nelson, Napier, New Plymouth and Palmerston North
• Launch sale fares start from $9^ one-wayJetstar today unveiled its new regional network in New Zealand, launching low fares on five routes between Nelson, Napier, New Plymouth, Palmerston North, Auckland and Wellington.Nelson-Auckland and Napier-Auckland flights will take off from the beginning of December, in time for the busy tourism season in both popular holiday destinations.New Plymouth-Auckland, Palmerston North-Auckland and Nelson-Wellington flights will follow early next year, with services scheduled to begin from 1 February 2016.David Hall, CEO Jetstar Australia and New Zealand, made the announcement this morning in Wellington, joined by Economic Development Minister Steven Joyce and Transport Minister Simon Bridges.“Today we’re delivering on our commitment to bring low fares and increased competition to communities around the country,” said Mr HallTo celebrate the new routes Jetstar is offering special $9 one-way regional launch fares from 9.30am-1.30pm today for travel 1-15 December 2015, 2 February-21 March 2016 and 4 May-29 Jun 2016.

Corporate Communications Manager, New Zealand

JETSTAR

Kiwi takes flight

The 34-seat aircraft has been extensively refitted and repainted in Poland and the Czech Republic over the last month as part of the purchase arrangements to meet Kiwi's requirements, and is expected to touch down at Hamilton International Airport on Tuesday afternoon, 1st September. The delivery route for the aircraft is via Oman, Sri Lanka, Western Australia and New South Wales.

Kiwi's General Manager Airline Operations, Bill Wilson, said he was "very pleased that we've passed this significant milestone, and we are really looking forward to seeing our own aircraft sitting on the tarmac in our own country."

"We acknowledge the important role the NZCAA has played in achieving the export of this aircraft in a timely and safe manner".

Kiwi Regional Airlines opened bookings two weeks ago for its scheduled flights, commencing on 27th October.

The aircraft will fly seven days a week, initially connecting the regional centres of Dunedin, Nelson, Queenstown and Hamilton.

Bill Wilson

General Manager Airline Operations

Kiwi Regional Airlines

Plans for more regional routes promise boost in passenger options, says Littlewood.

Auckland Airport chief executive Adrian Littlewood says the arrival of Jetstar on to regional routes will be a welcome boost for his company and passengers nationwide.

Although not a big part of the airport's total business, more regional flying by Jetstar will be an "interesting" feature of aviation.

Jetstar will announce next month up to four destinations it will fly in the regions and Auckland Airport is likely to be part of the new network for the Q300 Bombardier planes.

Air New Zealand has added new planes to its network after pulling out of three towns and has dropped lead-in fares sharply.

Littlewood said Jetstar's regional network would feed into its international network, which includes parent company Qantas and group partner Emirates. "I do think that's a big part of the story of how airlines work in alliances they form."

Jetstar would be able to give international tourists more options to go to other places.

"To have Jetstar and their alliance partners having onward services not just on the jet routes but also on the regional routes will make quite a difference. I'm interested in how that is going to play out," said Littlewood.

Jetstar is not saying where it will fly, with Hamilton, Tauranga, Rotorua, Napier, New Plymouth, Palmerston North, Nelson and Invercargill in the running. Napier and Nelson are seen as frontrunners.

Littlewood said the airport was allocating more stands for turbo props serving the regions, which would benefit from healthy tourism growth. The airport on Monday released its full-year profit to June 30 in which underlying profit, which excludes some revaluations of property and derivatives, rose to $176.4 million, from $169.9 million a year earlier. Sales rose 6.9 per cent to $508.5 million. Underlying earnings per share were up 12.9 per cent to 14.82c a share.

Income rose 6.5 per cent to $93.3 million and the company also recorded increases in rental income.

Underlying annual earnings may rise as much as 8.3 per cent next year to $191 million.

Littlewood expanded on a review of "direction and strategy, including executive remuneration" which had led to the exit of chief financial officer Simon Robertson and general manager corporate affairs Charles Spillane.

"The review resulted in some changes in the long-term incentive scheme." The company was hiring fulltime replacements for the pair.

Where revenue's coming from

• Total revenue up 6.9% to $508.5 million in the year to June 30. • Aeronautical revenue landing and passenger charges up by 6.9% to $234.2 million). • Property rentals up by 8.9% to $64.6 million. • Profit share from Queenstown Airport up 25.8% to $2.1 million. • Profit share from North Queensland Airports down 9.8% to $7.2 million, reflecting a softening Australian economy. • Profit from Novotel hotel up by 68.4% to $3.2 million.

- NZ Herald

by Grant Bradley

Cheaper airfares as competition grows

Kiwi Regional Airlines has announced cheaper regional fares as Nelson skies grow steadily more crowded with competition.

Kiwi Regional announced their direct flights between regions will start from $79 from October 28 to the end of January with the exception of two weeks leading up to Christmas day. The fares are part of a 'celebration airfare special'.

Passengers on the Dunedin-Nelson, Nelson-Dunedin, Hamilton-Nelson and Nelson-Hamilton routes will be able to purchase the $79 flights on any day or time in the schedule. The price is generally much lower than Air New Zealand's current prices.

A standard fare on October 28 from Nelson to Dunedin on Air New Zealand (flying via Christchurch) is currently priced at $138. Kiwi Regional Airlines is offering the flight direct on the same date for $79.

Kiwi Regional chief executive Ewan Wilson said the cheaper fares were not to compete with Air New Zealand, rather, it was to celebrate the purchase and completion of painting its new aircraft.

"It is about celebrating a key milestone in our company's development," said Wilson.

The airline is also providing connecting flights between Nelson and Queenstown through Dunedin. These will be priced at $119 for the sale period.

"Even on the busy days of the week, or times of the day, if you are quick enough you will be able to get a seat for $79. And our other, more flexible fares, also represent a good deal for the region to region traveller," he said.

The cheaper fares come as additional airlines take to Nelson skies, including Originair who started flying between Nelson and Palmerston North this month.

Jetstar is also expected to announce if Nelson will be one of their regional destinations in September with flights commencing in December.

JESS PULLAR

Last updated 08:54, August 26 2015

Stuff

Air New Zealand to grow domestic operation, offer more cheap flights

Air New Zealand announced a record result of 496 million dollars for the 2015 financial year. Customers are set to get a good deal on flights over the next year, Air New Zealand says.

As the airline announced a record annual profit on Tuesday, chief executive Christopher Luxon said lower fuel prices and growing capacity would lead to cheaper flights for Air New Zealand travellers.

The airline would offer over two million domestic fares for less than $100.

Air NZ, which announced cuts to its regional routes last year, also said it expected to grow its domestic operation by 8 per cent this year.

Competition with Jetstar is hotting up, and the regional route expansion by the Qantas offshoot has been tipped eat into Air New Zealand's revenue.

Jetstar was planning to begin regional flights on turboprops from December, and will offer Qantas frequent flyer points on its domestic NZ network, which it does not do in Australia, to help to drive loyalty.

Luxon welcomed Jetstar's plans to add four new domestic New Zealand destinations to its network, and downplayed the impact it could have on competitors.

"We are confident of our ability to stimulate the economy to fill those seats. We don't lose to Australians at home."

New Zealand's international airfares were down 6.3 per cent year-on-year and domestic flight prices were down 3 per cent, Statistics New Zealand data shows.

Membership of Air New Zealand's loyalty programme, Airpoints, was up 17 per cent at 1.9 million, with Australia the biggest overseas group of members, up 20 per cent in th year, Luxon said.

Luxon said Air New Zealand was focused on the Pacific Rim to provide growth. The airline was starting new routes this December to Houston and Buenos Aires.

There was already strong demand for those destinations, and Luxon said were also more opportunities in Australia, Asia and the Americas.

Australia seemed underserved and there was potential to bring more Australian travellers through Auckland to Latin American destinations, he said.

Bullish outlook

The national carrier posted an annual profit of $327 million, up 24 per cent, and said strong demand and capacity growth, cost control and lower fuel prices were behind its record result.

Luxon was confident of the airline being able to shake off the effects of a Chinese economic slowdown and a drop in the New Zealand dollar.

He said the airline's experience of previous market slowdowns, including in Asia, was that big segments of the market were not affected by macroeconomic changes. American travellers had continued to travel to New Zealand through the global financial crisis, he said.

New Zealand's dollar is on a downward track and the profit included a negative currency impact of $31m. Luxon said Air New Zealand was also expecting an $80m currency drag on next year's profit.

But he said the airline had been able to use currency hedging – a type of insurance against fluctuations in the dollar – to lessen the impact of the drop.

Chairman Tony Carter said the airline expected significant earnings growth in the coming year in part thanks to increased capacity and a more efficient operation.

"Our strategic initiatives over the past three years have positioned us well to take advantage of market dynamics which have contributed to these results," Carter said.

"Our investment in new efficient aircraft, the continued development of our alliance partner relationships, world class sales and marketing execution, great customer service and strong focus on cost management have enabled Air New Zealand to achieve revenue growth against a stable cost base.

"We indicated at our interim result that lower fuel prices and current sales momentum have strengthened the company's outlook, and this has seen the delivery of a record annual result that our shareholders and staff can be immensely proud of," he said.

A company bonus scheme will see 8000 staff who are not on other incentive programmes receive payments of up to $1400 thanks to the result, Luxon said.

The final dividend of 9.5 cents per share was up 73 per cent on the previous year, bringing the total dividend to 16c per share, an increase of 60 per cent.

SUSAN EDMUNDS

Last updated 10:18, August 26 2015

 - Stuff

Air New Zealand slashes fares ahead of Jetstar arrival

Air New Zealand has fired some heavy shots in what's shaping up as an intense regional air fare war. Figures show the airline slashed lead-in fares earlier this month just as Jetstar prepares to enter the market.

Air New Zealand has had a stranglehold on the regional aviation market for years and lead-in fares have dropped by up to 40 per cent on dozens of routes ahead of Jetstar's announcement next month of where it will fly.

Eight destinations are being considered by Jetstar for the initial launch phase: Hamilton, Rotorua, Tauranga, New Plymouth, Napier, Palmerston North, Nelson and Invercargill, with the first flights due to take off in December.

Grant Kerr, Jetstar head of New Zealand said the Air New Zealand response to his airline's planned services showed what competition brought to air travellers.

"We're delighted to see that without even announcing destinations or publishing a schedule, Jetstar is already making regional travel much more affordable," Kerr said.

The figures show reductions on 32 regional routes earlier this month ranging from 11 per cent to 40 per cent. They are nearly all the lowest introductory fares.

Air New Zealand's chief sales and commercial officer Cam Wallace said his airline had said earlier this year - before Jetstar announced its plans - that it would cut prices.

"We are now seeing this play out," Wallace said.

Air New Zealand was not undercutting fares to target Jetstar routes as many were to towns not on its list of possible destinations.

"We have delivered reduced lead-in fares to every domestic port we operate over the past six months or so. The biggest reductions have been on routes that are being up-gauged from the 19-seat Beech aircraft to the larger 50-seat Q300s."

Wallace said that to fill the extra seats his airline had cut fares on 600,000 seats to below $100 on the regional network.

The number of cheap fares was likely to grow by at least another 30 per cent.

While analysts say Jetstar will have to fight hard to make its regional services pay, the entry of the Qantas subsidiary will hurt Air New Zealand's bottom line as well as it offers more discount fares to shore up its market.

Frontrunners for Jetstar regional services are believed to include Napier, New Plymouth, Palmerston North and Nelson. It hasn't said what its fares may be but has said where it enters markets fares can drop by up to 40 per cent.

Wallace said Air New Zealand was already competing with other small airlines on some routes and initiatives have been in the pipeline for the past 18 months.

A board member of Business Hawkes Bay, Mike Purchas, said travellers in the regions were relishing competition.

"We would welcome a second carrier to Hawkes Bay, any region where there is a monopoly inevitably means there are higher fares." He wasn't surprised Air New Zealand was vigorously protecting its patch by dropping fares.

"It's not a charity."

House of Travel commercial director Brent Thomas said spending reports from corporate clients showed the prospect of competition was already being seen.

"We have seen a material movement in pricing," Thomas said.

"There may have been a significant reduction [in] the lead-in price but what we don't know is the quantity they've got selling at that price."

By Grant Bradley

Kiwi Regional Airlines announces low regional airfares

Kiwi Regional Airlines has announced the start today (Monday 24 August) of its 'Celebration airfare special', with the lowest regional fares in the country available on every Kiwi flight. Starting on the 28th October this year - Kiwi's second day of scheduled services* - and running through to the end of January (with the exception of the two weeks up to and including Christmas) one-way fares for direct flights will start from $79*.

Passengers on the Dunedin-Queenstown, Queenstown-Dunedin, Dunedin-Nelson, Nelson-Dunedin, Hamilton-Nelson and Nelson-Hamilton routes will all be able to pick up a $79 fare for flights on any day or time in the schedule.

Anyone flying on flights connecting through Dunedin or Nelson: Queenstown-Nelson, Nelson-Queenstown, Hamilton-Dunedin or Dunedin-Hamilton will also benefit from low one-way fares of $119.

Kiwi Chief Executive Ewan Wilson said the special fares were put on offer "to celebrate the purchase and completion of painting of our new SAAB 340A aircraft in Europe, and to promote our commitment to providing a good deal for regional New Zealand."

"This is not about competing with Air New Zealand or Jetstar, who don't fly direct services between the centres we service, it is about celebrating a key milestone in our company's development."

"Even on the busy days of the week, or times of the day, if you are quick enough you will be able to get a seat for $79. And our other, more flexible fares, also represent a good deal for the region to region traveller."

*Subject to regulatory approval, and available seats in the class not being sold out.

Kiwi Regional Airlines reveals prices for Nelson flights

Kiwi Regional Airlines has revealed the prices for its first flights to and from Nelson.

The airline's online and telephone booking system went live on Wednesday.

Kiwi Regional Airlines will start scheduled flights on October 27, subject to regulatory approval, servicing Dunedin, Queenstown, Nelson and Hamilton.

According to its website, a direct flight from Nelson to Dunedin return on October 28 will cost $194 each way.

Nelson to Hamilton will cost $184, while the return flight is listed at $139.

Nelson to Queenstown is $134 and Queenstown to Nelson is $194.

Prices are subject to change but provide an early insight into what customers might expect to pay for the new service, which aims to fill gaps in the domestic flight market.

"Fares on Kiwi flights will be completely transparent, with no unexpected add-ons," chief executive Ewan Wilson said.

"What you see on your computer or phone screen will be what you are charged.

Mr Wilson said children, aged two to 15, will have seats booked at 75 per cent of the applicable fare so long as they are accompanied by a paying adult.

This is a much more family-friendly policy than travellers will have seen recently," he said.

"We are the only ones offering a child discount, and the only ones extending the child age until they turn 16."

 - Stuff

First Originair flights between Nelson and Palmerston to take off today

Yesterday Originair Took its first flights between Nelson and Palmerston North, with celebrations planned at both airports. Since announcing its planned routes in June for both the Nelson – Palmerston North and Nelson – Wellington routes, Originair has refitted its 19-seat British Aerospace Jetstream to a high specification, airport check-in counters have been built, and a team of experienced crew and customer service employed.

Managing Director Robert Inglis says he is pleased the first day has finally arrived.

“This has been in the planning since the end of last year, so we are very pleased that today has arrived and passengers can now fly direct between Nelson and Palmerston North again,” Inglis says. “We have had great support from our partners and the regions’ communities to get us here today, and have a fantastic Originair team in place – we are ready to fly.

“Our partnerships with both the Nelson and Palmerston North airports are also very strong, and we want to thank them for welcoming us to their airports and arranging celebrations for our first flights today. We are looking forward to the day.”

Background:

• Company: Origin Air Ltd (Originair) established 2015. Managing Director, Robert Inglis. General Manager, Mike Curry.
• Fleet: two twin-turbo prop pressurized 19-seater Jetstreams by British Aerospace crewed by two pilots.
• Flight operations: Freightways Limited Group, Air Freight NZ Ltd (Air Freight).
• Fleet maintenance: Fieldair Engineering Ltd (Fieldair).
• Website: www.originair.nz

Media Enquiries:

Emma Thompson, emma@etcnz.nz, 021 190 1533

Air New Zealand's Nelson price cut flies under the radar - $59

Air New Zealand has dropped its lowest consistent airfare prices to $59 between Nelson and other main centres from October, but the lowered cost seems to have flown under the radar for some. Its lowest fares from Nelson to Auckland, Wellington and Christchuch are currently priced around $79 (excluding special deals), but from around October 12, prices have dropped to $59 to fly one-way. The $59 fare is relatively consistent for many dates in October, November and December.

The airline has been much-criticised for its high regional airfares, and the lowered price comes in response to the recent announcement of at least two new airlines flying out from Nelson Airport.

Originair's first flight to Palmerston North takes off on Wednesday, and while Air New Zealand dropped that route earlier this year, Originair also intends to fly an existing Air New Zealand route from Nelson to Wellington starting in September.

Nelson resident Richard Wilson saw the changes in the flight prices after scouring ahead in the Air New Zealand booking website.

"Normally they make a bit of fanfare of advertising about it but they seem to have kept it below the radar."

He said those sorts of fares were "unheard of in recent years".

Air New Zealand said the reason for lowering the price was because they had invested in more than $300 million in new regional aircraft, giving scope to grow in capacity.

"This allows us to put more cheap seats into the market and we are pleased to see customers responding positively to this," said Air New Zealand spokesperson Janna Wilkinson.

Jetstar also announced it was considering Nelson to be a regional destination, and is expected to confirm whether they will commit to the region in September.

Kiwi Regional Airlines also recently announced they would start a direct route between Nelson and Hamilton and Nelson and Dunedin at the end of September.

Stuff

Originair sneak peak

https://youtu.be/PT70aRunlLc

VIDEO: Originair Sneak Peek

The first of Originair’s BAe Jetstream 32 aircrafts is being fitted out with all the bells and whistles as the interior installation is finalised this afternoon.

The team working on the Originair fit-out: National Aircraft Interiors’ Brent Hill and Eddie Field, front, with RepairCraft’s Matt Ashton, back. PHOTO: Jacob Chandler

Nelson based company National Aircraft Interiors were given the contract to custom design the seats and parts of the interior of the aircraft along with RepairCraft who perform line maintenance on the fleet.

Originally built in the late 80s the aircraft required an extensive refit with new padded leather seats, yellow detailing and carpet installed in the plane.

The plane has 19 seats in a 2×1 off-set configuration. It’s flown by two pilots and features a pressurised cabin and twin turbo prop engines

Robert Inglis and partner Nicki Smith founded Originair this year in an effort to directly link Nelson, Palmerston North, and Wellington. The inaugural flight will be held on August 12.

Nelson working to woo Jetstar

Nelson is pulling out all the stops to impress Jetstar in a bid to bring the low-fare airline to the region. Nelson airport chief executive officer Rob Evans said a final proposal for Jetstar to consider flying to Nelson would be sent at the end of the week. He believed Nelson posed a "good business case" to the airline.

Jetstar conducted a roadshow across New Zealand visiting seven potential regions to fly from. Of the seven, the airline will pick four terminals, with flights commencing in December this year.

A social media campaign encouraging people from each region to prove why their destination is best has evoked plenty of involvement from Nelsonians who have commented on a Facebook post by the airline asking what there is to do in Nelson.

Janice Feyen suggested an action-packed day, starting with breakfast at the Boatshed then taking the ferry trip across the Haven to climb the lighthouse, followed by some op-shopping, then fish and chips and a walk on the Boulder Bank, "it's wild and beautiful."

Julie Maslin-Caradus wrote: "High tea on the veranda at Melrose House, a beautiful restored historic building situated in gorgeous gardens."

The post has over 260 comments including descriptions and pictures of the region.

Evans said Nelson Airport was also "engaging on Facebook" to drive Nelson's campaign further. https://www.facebook.com/NelsonAirport300

Photo - Martin de Ruyter Rob Evans Nelson Airport CEO at Nelson Airport.

- Stuff

Nelson Airports growth - interview with Rob Evans CEO

http://podcast.radionz.co.nz/business/bus-mnr-20150706-0653-nelson_airport_growth_aims_to_double-048.mp3

Three new airlines eye Nelson Airport

Nelson Airport will be busy by the end of the year with three new airlines eyeing flights to and from the region.

Nelson Airport’s expansion plans might need to be accelerated to cope with three new airlines that have announced plans to fly here, in the past fortnight.A year ago, Nelson air travellers were screaming out for some competition as Air New Zealand drove up prices and offered little in return. It appears there were plenty of people listening.

In the past week, Jetstar has visited Nelson, Originair has launched and Kiwi Regional Airlines has announced the routes it will service, with Nelson as its base.

Nelson Airport CEO Rob Evans says it’s an exciting, but hectic, time for the airport.

“It’s been an interesting few weeks for aviation in Nelson. It doesn’t often happen quite like that,” he says. “These decisions aren’t made by them overnight, a lot of planning has gone into it so it is purely coincidental, but it does show and demonstrate the strength of the market here.”

The airport is in the early stages of planning an expansion of the terminal and Rob says, while these announcements won’t alter the plans, it is good timing.

“It’s perfect timing really. We’re not that far advanced that we can’t look at changing anything, but what they do is support the growth and the fact that we do need to provide improved infrastructure because we just don’t have the ability to cater for them at the moment.”

He says if Jetstar do come to Nelson there will need to be a “short-term solution” to squeeze all of the airlines in the terminal, before the terminal upgrade begins.

Originair announced last week that they will fly Nelson to Palmerston North from August and from Nelson to Wellington from September. Headed by former Origin Pacific boss Robert Inglis, they will employ 20 staff and operate two 19-seat Jetstreams.

Andrew Board

July 3rd, 2015

Enabling economic growth in the Nelson region is as important as earnings according to Nelson airport's new boss

Rob Evans, who has a history in airport management in New Zealand and Australia, predicts the airport will need to double in size over the next thirty years to accommodate expected growth.

An immediate challenge however is the possibility of housing three new regional airlines over and above the three existing carriers.

Originair in Nelson and Kiwi Regional Airlines in Hamilton have confirmed plans to operate flights to and from Nelson. And Jetstar has included Nelson on its shortlist for a new, but yet to be confirmed, regional service.

Nelson is currently served by Air New Zealand Link, Soundsair and Air2There which all operate scheduled commuter flights.

Mr Evans said increased aircraft movements translated to increased revenue for the company - a council-controlled and owned organisation.

But the biggest impact, he said, 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."

Mr Evans believed there was enough room in the market for an additional three carriers.

"It's about operating at a price point where the consumer gets a choice and when that happens that will stimulate more movements, and that will open up more opportunities for people to do business here. It [increased service] has a whole range of benefits that go well beyond the airport company.

"There are a lot of other vibrant economies in this region, including education which provide a good business case for airlines to fill aeroplanes."

The airport terminal currently sees more than 800,000 passengers a year through its doors, who board an average 60 commercial flights a day. Almost half are travelling for business.

Plans are being drafted for a terminal expansion and the airport company has appointed Wellington firms Studio Pacific Architects and Impact Project Management to the redevelopment project.

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

"We need to establish a really clear and strongly articulated master plan which protects our aeronautical business, but also the commercial and property real estate side of the business," he 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.

Jet capacity might need to be considered if the region was to become a bigger hub on the main trunk routes, but Nelson would never be an international terminal, Mr Evans said.

"Absolutely not. New Zealand has more than enough international airports and we're not big enough to have a direct international connection, but runway extension is not out of the question. Expansion brings layer upon layer of cost and compliance and it's not as simple as people think."

He said Air New Zealand was looking at options for introducing a 90-seat turboprop aircraft to its fleet in next 10 years and that could make a big difference to Nelson airport.

Photo: Supplied -  Rob Evans

Updated at 12:32 pm on 2 July 2015

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

Jetstar CEO a Nelson man too

Nelson air travellers have been celebrating since the news of Jetstar’s possible arrival – one in particular. Jetstar CEO Grant Kerr lives in Richmond with his family and, after time as CEO of Air Nelson, knows exactly what the region will offer to Jetstar. But he says he won’t let local loyalties sway his decision about which centres to fly to.

“We can’t have an airline just for me to fly to work. Is it commercially viable? That’s the question, but I don’t see anything negative with Nelson at this point,” he told Nelson Weekly last week after spending last Thursday speaking with regional stakeholders, including Nelson Airport CEO Rob Evans, both mayors and the tourism and business industries.

“The conversations that we’ve had have been very encouraging and they understand what a low cost carrier will do for the region, the benefits. Nelson has put forward a great case, we’ve certainly been impressed. I think they’ve done the region proud for the work they’ve prepared in such a short period of time.”

Jetstar announced two weeks ago that it would be flying to four provincial centres, out of a possible seven towns. Since then, they’ve been travelling to those seven centres to gauge support.

Grant says, when looking at new destinations, Jetstar will look at driving growth.

“It’s got to be sustainable for us. It’s not about coming in and taking a piece of the pie, it’s about driving that growth. It’s also about gaining an understanding about how much support there is in that region. The key for us is ‘do we think we can develop and grow a partnership with that region?”

He says Jetstar’s announcement is a “game-changer” and Nelsonians could see up to a 40 per cent drop in prices. “People in the Nelson region have a very high propensity to fly. This will open up the opportunity to fly more often.”

Jetstar will make their decision about where to fly in September, with flights starting in December.

Andrew Board

Nelson Weekly

July 1st, 2015

Jetstar comes to Nelson - TV3 media clip

TV3 Jetstar clip  

Radio NZ interview with Grant Kerr for Jetstar to Nelson

http://podcast.radionz.co.nz/business/bus-mnr-20150630-0652-jetstar_insists_its_nz_expansion_plans_are_about_growing-048.mp3  

Nelson bid to lure Jetstar to region

Grant Kerr, head of Jetstar New Zealand, says establishing which regions would produce the highest growth in travel will be the key to the airline's decision.

Nelson has made an "encouraging" bid to Jetstar to bring the low-cost airline to the region.

Jetstar New Zealand head Grant Kerr consulted with Nelson airport, council and other organisations' representatives on Thursday as part of a seven-stop roadshow in regions across New Zealand. Jetstar will chose four of the seven regions to operate their fleet of five domestic aircraft from December.

Kerr said Nelson had encouraging factors which made the region appeal to the airline, particularly because of the enthusiasm shown by council representatives and the community.

"The support and eagerness has been encouraging," said Kerr.

"Also as a region [Nelson has] a very good understanding of the low-cost airline model and how that can bring growth to the region."

Kerr met Nelson MP Nick Smith, Nelson mayor Rachel Reese, Tasman mayor Richard Kempthorne, Nelson Airport chief executive Rob Evans, Nelson Tasman Chamber of Commerce chief executive Dot Kettle and representatives from Nelson Tasman Tourism to gauge a view on what the airline would bring to the region.

Jetstar will also be taking the roadshow to Invercargill, Hamilton, Rotorua, New Plymouth, Napier and Palmerston North over the next few weeks.

Kerr said establishing which regions would produce the highest growth in travel by introducing the competing airline was going to be key in making the decision.

"Nelson's total catchment area has a population of about 100,000 with about 800,000 travelling through [Nelson Airport] annually. If Nelson is a [Jetstar] destination we would increase that number considerably," he said.

Kerr did not disclose price points or how many additional flights the airline would introduce to the region. A schedule would be developed after the four regions were chosen. However, he said Jetstar guaranteed the lowest fare which would ultimately reduce average airfare costs while it competed with Air New Zealand, which currently operates out of Nelson.

"We know that whenever we enter into the market we've seen average airfares drop by approximately 40 per cent. We know that works," he said.

The introduction of Jetstar into the four regional terminals is expected to bring about 100 extra jobs to New Zealand.

Evans believes Nelson has "as good a chance as any" to welcome Jetstar to the region.

"We have a strong aviation footprint now and a good tourism product. I think we are very high on [Jetstar's] list of priorities," he said.

Jetstar would be the sixth airline to take off from Nelson's airport terminal. Originair announced on Thursday its intention to fly from Nelson to Wellington and Palmerston North.

Welcoming the additional airlines meant a terminal upgrade was becoming more pertinent, said Evans.

"At the moment we are very constrained so we will have to do something in the short term to accommodate [the foot traffic]," he said.

A short term development plan, including a car park upgrade and additional counters within the terminal, was in place which would roll out over the next six to 12 months.

"We will be geared up and ready [for additional airlines], It will be a tight time frame but that's okay," he said.

A long term development plan was also in the works, but Evans said there were no definite plans on whether the existing terminal would be expanded or whether an entirely new terminal would be built.

Nelson MP Nick Smith also met with Kerr on Thursday to outline the benefits of operating a regional air service from Nelson.

Smith was optimistic about Nelson being chosen as one of the four regional terminals Jetstar would operate from.

"Nelson has a distinct advantage in that we are a growing area, we have excellent airport facilities and the weather means it is rare to have disruptions in the air," said Smith. "I made those points as strongly as I could to Jetstar."

Smith said there was a need for airline competition in Nelson, particularly for small businesses looking for a base in Nelson.

"There has been a reduction in the number of consultancy businesses in Nelson since we have only had a single airline," he said.

"People basing businesses in Nelson to produce a niche service [to serve nationally] are very dependent on airlines."

He said competitive airfares were central to creating a viable business model that could operate nationally.

Mayor Rachel Reese said introducing any new airline would enable more businesspeople, tourists and residents easier access to the city.

She said Nelson posed a good business case to Jetstar with significant interest from both the business and tourism sectors to provide new routes and extended services.

"So that bodes well for the city," she said.

The four chosen regions from Jetstar are expected to be announced "reasonably quickly," said Kerr, with the first regional flights going on sale in September.

JESS PULLAR Last updated 11:13, June 26 2015

- Stuff

Regional centres vie for Jetstar's affections

 Jetstar has begun a regional road show to select up to four new destinations for its domestic flight network.

Today, Nelson makes its bid to attract the airline.

Nelson Airport CEO Rob Evans is meeting with Jetstar executives this morning and says Nelson has a strong business case with a large tourism market, plenty of niche businesses and a growing commuter population.

He's optimistic a new player in the market could result in a 30-40 percent discount on airfares for passengers, at least in the short term.

Nelson airport handles 800,000 passengers each year, with 60 in- and out-bound flights every day. The airport's already served by Air New Zealand, Sounds Air and Air 2 There.

Local MP Nick Smith says Nelson's the fastest growing region outside of Auckland.

Rob Evans would like to see Jetstar fly between Nelson and main trunk destinations Christchurch, Wellington and Auckland, ideally up two to three times per day.

He couldn't quantify the economic value of having Jetstar fly to Nelson, but says it would be significant.

Other centres vying for Jetstar services are Hamilton, Rotorua, New Plymouth, Napier, Palmerston North and Invercargill.

Jetstar has indicated it will make its decision in September, with the first flights to begin operation on December 1.

3 News

By Emma Jolliff

Reporter

Thursday 25 Jun 2015 10:27 a.m

Read more: http://www.3news.co.nz/business/regional-centres-vie-for-jetstars-affections-2015062510#ixzz3e7VOJVnV