In one of the NZ papers today, I read an article quoting a Snr AirNZ manager stating that the competition for customers will be on the ground and not in the air. This was in relation to saving passenger checkin time using web checkin, RFID tags on bags etc.
So this "on the ground" strategy, along with lounge access and frequency could be used to counter DJ in the bus market even with turbo props up against 737NG/E jet, while the lower CASM of a turbo prop would help target the VFF market. At least there is no middle seat on a turbo prop.
Another article mentioned expansion at nelson incl hangar space for Air Nelson growth.