PPRuNe Forums - View Single Post - JQ N.Z regional market?
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Old 21st Apr 2013, 02:52
  #22 (permalink)  
27/09
 
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Jarden
Jetstar will be looking deep into what Air NZ charge on regional routes and how much they can undercut them by.
NZ charge $700+ return for an AKL-IVC connection. They could jump in and run a non stop operation (like they did by starting WLG-ZQN) and charge $120 each way and really start off a price war they will do their market research and see where they can make the best return. The travelling public will flock to JQ if they get to fly in a 320 over a more expensive NZ turboprop service. Plenty of opportunities going in regional markets, the larger cities that have long enough runways for 320s are TRG, HLZ, PMR, NPE, ROT and IVC.
They just need to link the dots...
Lets link the dots.

NZ is a long narrow country with a population of about 4.5 million people, smaller than most decent size overseas cities. 33% of this population live in the Auckland region and 76% in the North Island.

Where are you going to operate a A320 to or from the likes of TG HN NP RO NV? There isn't the population to sustain A320 aircraft on these destinations.

Air NZ don't even run a direct flight AA to NV so I can't see it making sense for Jetstar to do it no matter the price especially in an A320.

An AA - NV return is 4 sectors with Air NZ. I just looked on their website and there are return fares for under $400 depending on when you want to travel.

Plenty of opportunities to run the A320s in the regional markets. Really? I don't think so unless you don't intend to make any money.

Last edited by 27/09; 21st Apr 2013 at 02:59.
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