Air New Zealand CEO has said since March that during the recovery phase of this whole thing, there will be new ventures born in the LCC/ULCC realm that will threaten their recovery. With Mike's mansion on the island as well as being CHC based, I am unsurprised by his desire for this idea. Match that with cheap leases, cheap air crew, and desperate NZers to get away... He could be onto something here. Particularly with VANZ pulling out of the route (permanently IIRC), and JQ's 1-3 times a week.
The issue will be in the longevity. 6 months from now when AirNZ is throwing daily 787-9s with 30 business seats etc and lounge access, deals throughout the regions in partnership with Cook Island Tourism (whom is pushing for the return of air travel HUGELY)... I fear the business model and pricing could fall over the first hurdle.