Kiwijet may return to fly again

Kiwijet is looking to take to the air, thanks to significant fall in oil prices making the budget airline economically viable.

Chief executive Patrick Weil told the National Business Review the Kiwijet concept was looking to fly again.

Oil prices today dropped below $US63 ($NZ117) a barrel, down nearly 60 percent from a record $US147 a barrel in July.

Some analysts say a fall to $US50 a barrel is possible in the short term.

Mr Weil told the business newspaper that as the oil price fell and the availability of aircraft increased, Kiwijet felt it could proceed cautiously.

By launching the airline Kiwijet as a cargo operator it could reduce the initial start-up costs and avoid the expected downturn in tourism brought on by the global credit crisis, he said.

Kiwijet will operate two BAE 146-300 QT aircraft, which can fly into 26 New Zealand airports without curfew limitations due to noise.

It has predicted that it will begin hiring 46 staff early in 2009.

NZPA