Flyers love regional competition - Jetstar survey

There is strong support for more regional airline competition. Photo / Greg Bowker

Flyers are enthusiastic about more regional competition and almost 70 per cent of them have driven to other cities to get cheaper fares, according to a survey commissioned by Jetstar.

The low-cost airline plans to start the first of its regional operations in December and says an overwhelming number of Kiwis say it's a good idea.

An online survey of 900 New Zealanders who have taken at least one regional flight during the past year shows between 89 per cent and 94 per cent of them support the entry of Jetstar into the market. The strongest support is from the regions.

Jetstar is scoping four potential destinations to fly to and says competition with Air New Zealand will lead to lower fares.

Although it hasn't yet released prices, it has said in other markets fares typically fall by up to 40 per cent when they start flying in competition to an incumbent.

Destinations under consideration are Hamilton, Rotorua, Tauranga, Napier, New Plymouth, Palmerston North, Nelson and Invercargill.

The survey also asked people living outside Jetstar's current markets of Auckland, Wellington, Christchurch and Otago if they had ever driven to another city to catch a domestic flight because of the cost of regional services. Of the more than 400 regional flyers surveyed, 68 per cent said they had made a road trip to save money before taking a domestic flight.

The survey found that around two out of three travellers (63 per cent) thought the regional flights they had taken in the past 12 months did not represent value for money. This feeling was higher in the regions (67 per cent) than in metropolitan centres (60 per cent).

Nearly all travellers believed Jetstar's entry into regional markets would boost passenger numbers, with 95 per cent saying that more people would fly into the regions if cheaper fares were available.

The survey by Acuity Research & Insights taken in July found that 87 per cent of all respondents said they personally would consider flying regionally more often if fares were cheaper.

Head of Jetstar New Zealand, Grant Kerr, said the survey results echoed the sentiments expressed on regional visits during the past two months.

"We've had a very positive response to our June announcement and the feedback we've received on our regional visits has been equally supportive," he said.

"The results of the survey show that travellers outside the main centres want competition, choice, and low fares. And I'm sure they don't want to have to drive to another city just to be able to catch an affordable domestic flight."

Kerr said the airline remained on track to announce the new regional routes in a few weeks.