Airline price wars set to benefit consumers

AUCKLAND: Jetstar isn’t going to relinquish its position as New Zealand’s most affordable airline without a fight.

Air New Zealand’s cuts to regional air fares prompted Jetstar to announce it will beat any comparable flight by 10%.

‘‘When you’re shopping online for flights, if you find a flight with another airline, or a Jetstar flight on an eligible third party website that’s cheaper than you can get on Jetstar.com, we’ll beat it by 10%,’’ James Stafford, the manager of New Zealand sales, said.

It sets up a price war between the airlines — and consumers are set to benefit.

Air New Zealand announced on Tuesday that its price cuts would make 750,000 regional flight seats available a year for less than $50.

The national carrier has revealed cheaper fares on 41 domestic routes in what is the biggest shakeup of prices in more than a decade.

Fares between Tauranga and Auckland will start at $39, and flights from Tauranga to Wellington at $49. Subtract from this a further 10% discount from Jetstar and those prices could drop further.

Jetstar flies regularly to Dunedin, Queenstown, Christchurch, Napier, New Plymouth, Nelson, Palmerston North and Wellington.

That suggests those will be the routes with the highest levels of competition.

Air New Zealand has initiated the price slash in an attempt to promote domestic tourism, and the move has already been welcomed by the tourism industry in the regions.

Air New Zealand head of tourism and regional affairs Reuben Levermore pointed to the BlenheimAuckland route as one of the major winners with the leadin seat fare dropping by $34.

‘‘These new fares will help bring more of the benefits of tourism to the area by encouraging visitors to discover everything Marlborough has to offer,’’ Mr Levermore said. — NZME.