Budget airline Jetstar has begun direct flights from Auckland to Adelaide.
Monday's flight is the first of its three times a week service, South Australia's Tourism Minister Leon Bignell said.
The airline has established a base in the state, creating another 120 jobs for pilots, cabin crew and operational staff and basing four A320 aircraft in Adelaide.
The move will be a real boost to the state's tourism industry, Mr Bignell said.
"With 39,000 visitors per year, New Zealand is already our second biggest international source market, behind only the UK," he said.
"It is also a growing market for us, our most recent results show visitor numbers are up seven per cent on the previous 12 months."
While SA is already serviced by six direct flights a week from Air New Zealand, the introduction of a low cost carrier on this route will open the state up to a new price sensitive market, he added.