Jetstar axes New Zealand regional routes

Jetstar will quit five loss-making New Zealand regional services by November 30.

Low fare carrier Jetstar will axe its five New Zealand regional routes by the end of November, with the 70-odd staff affected to be redeployed elsewhere in the Qantas Group.

The plan to end regional Q300 turboprop services follows an admission by Qantas CEO Alan Joyce last month that the flights were making a loss and market conditions were being monitored closely.

In a statement on Wednesday, Jetstar CEO Gareth Evans said the routes continued to lose money, with no improvement expected.

“The New Zealand regional market is facing some headwinds, with softer demand and higher fuel costs and we don’t see the outlook changing any time soon,” Mr Evans said.

“As a result we’re announcing a proposal today to end our regional services, with the final flights on November 30.”

He said Jetstar had given it “a real go” after launching the routes between Auckland and Nelson, Napier, New Plymouth and Palmerston North and between Nelson and Wellington in December 2015.

“Despite four years of hard work including becoming the most on-time of the two major regional airlines and having high customer satisfaction, our regional network continues to be loss-making,” said Mr Evans.

“We understand there will be disappointment in regional centres at today’s announcement.

“Jetstar brought low fares and competition to the regions and we’ve carried more than 1.3 million passengers since these services began in 2015.”

Jetstar would continue to offer up to 270 domestic jet services a week in New Zealand between Auckland, Wellington, Christchurch, Dunedin and Queenstown, and up to 100 international flights a week on the Tasman route and to Rarotonga.

“We are fully committed to our domestic jet services,” Mr Evans said.

“From the end of October, we’re doubling our Queenstown to Wellington services to six a week and we’ll continue to look at opportunities for our domestic trunk routes and international flying.”

Consultation would begin straight away with the 70-plus affected employees - mainly pilots and cabin crew.

Alternative positions were available across the Jetstar and Qantas Group businesses in New Zealand and Australia, the Jetstar statement said.

Air New Zealand has offered discounted fares to Jetstar customers affected by the withdrawal of regional services.

Seat-only fares for the same route on the same day would be available for purchase for no more than $50 each way.

The Kiwi carrier would also consider adding further capacity to the routes which Jetstar will no longer be operating.