Jetstar blazes budget Asia trail

Jetstar will be the first airline to offer budget long-haul flights out of New Zealand when it begins direct daily services from Auckland to Singapore in March.

The airline, which already flies domestically and across the Tasman, is promising cheaper fares to encourage more people to travel to Asian tourist destinations.

The service will compete head-on with Singapore Airlines, the only other airline to fly the route, by adding about 4200 seats a week.

Air New Zealand abandoned its loss-making flights to Singapore four years ago in favour of expansion to China.

Travellers used to receiving meals and in-flight entertainment as part of their fare will have to pay for those services separately either before the flight or on board.

Chief executive Bruce Buchanan would not be drawn on fares before they go on sale in about two weeks.

But the airline has started selling standard lead-in fares, including checked luggage, on another new route between Melbourne and Singapore for A$711 (NZ$882) return. Meals, movies and a comfort pack add A$104 to the fare. Singapore Airlines charges nearly A$1100.

Jetstar typically moved fare prices lower by between 20 per cent and 40 per cent, and fares would always be 10 per cent below Singapore Airlines, Mr Buchanan said.

"Affordability of air travel between Asia and New Zealand is not that great, and we are going to smash that market in terms of giving people access and opportunity."

House of Travel retail director Brent Thomas said Jetstar would grow the market, rather than shift passengers from one airline to another. Passengers were becoming more familiar with the way budget airlines charged for services.

The route would be served by a 303-seat Airbus A330-200 featuring two classes. Flights would connect with services from Australian parent Qantas in Singapore, providing access to Asian and European destinations.

Jetstar has also formed links with European giant Air France/KLM.

Mr Buchanan said the route was the next phase in Jetstar's expansion in New Zealand and its wider Asian network.

"Connecting our three largest operations in Australia, New Zealand and Singapore strengthens each of these businesses and builds a solid foundation for future growth beyond Singapore to North Asia and Europe," he said.

Tourism Auckland chief executive Graeme Osborne said the long-haul service created an opportunity to stimulate visitation to the Auckland region from a market that had significant unrealised potential.

Last week Mr Buchanan said the airline was considering long-haul services to Asia and North America from Auckland. A seventh Airbus A320 would be based in New Zealand by the end of the year to expand domestic and trans-Tasman services. Another four new markets would be announced over the next few weeks, he said.

- © Fairfax NZ News