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Low Cost Model Key to Airport Short Haul Growth

01 December 2005

Low Cost Model Key to Airport Short Haul Growth

With the launch of Jetstar Airlines today Christchurch International Airport Limited (CIAL) has firmly established itself as New Zealand’s leader in developing the high growth, low fare and low cost airline holiday market.

CIAL’s acting chief executive, Vic Allen, said the airport company was focused on becoming the leading holiday airport for New Zealand and had seen that in order to grow its short haul markets and provide better access to the local community it needed to target and form marketing alliances with the Value Based Airline (VBA) model carriers.

“The Tasman has been a blood bath and it is not sustainable for airlines to lose money so we set out to attract airlines who have low costs to match the low fares needed to grow holiday markets and still make money.” Mr Allen said.

“The launch of Jetstar today signals the next phase of growth for our short haul markets as a leading holiday airport for New Zealand as well as further growth in low fares and access for local travellers.” Mr Allen added.

With 177seat capacity the new Jetstar flights will increase capacity to Melbourne, Brisbane, Sydney and the Gold Coast. The additional low fare capacity and a multi-million dollar joint promotion of the region by Jetstar and the airport will help build on Australian tourism demand for the region which is almost 50% higher than it was two and half years ago before the entry of Pacific Blue.

Glenn Wedlock, CIAL’s marketing manager believes that the launch by Jetstar Airlines and ongoing promotion will stimulate new markets in Australia and open new opportunities for the South Island.

“Competition for air services and Australian holiday travellers is extremely tough at the moment but with JetStar’s everyday low fares, extra capacity, joint promotion and targeted marketing we have in place the perfect mix for the South Island industry to continue to build on the momentum of the last two years. ” Mr Wedlock said.

ENDS

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