Jetstar's focus on facilitating growth

Jetstar's entry to regional centres is a game-changing opportunity, says New Zealand head Grant Kerr.

Jetstar New Zealand head Grant Kerr made it clear Tauranga was still very much in the running to become one of the low cost carrier's first regional destinations during a fact-finding visit to the city.

Mr Kerr and his team have been on a road show throughout the eight identified potential destinations - Tauranga, Rotorua, Napier, Hamilton, New Plymouth, Palmerston North, Nelson and Invercargill. He said the airline would announce four regional destinations by the time it began its commercial launch in early September, with the first flights expected in December.

Mr Kerr described the decision to enter New Zealand's regional cities as a game-changing opportunity.

"When we enter a market, typically we've seen average air fares drop by up to 40 per cent," he told an audience of influential local business people at a Q&A briefing organised by Priority One on Friday. The Jetstar team also met with mayor Stuart Crosby and Tauranga City Council chief executive Garry Poole.

"It's a very exciting time for us," he said. "But we need to get this right."

Mr Kerr said the team's initial perception of Tauranga's needs had been altered on the two-and-a-half hour drive from Auckland to Tauranga. The drive had brought home to him that Tauranga was not as close to Auckland as geography suggested, and underlined the difficulties faced by local businessmen who commute regularly, he said.

"Tauranga is drivable, but if you're doing that day in, day out, you'd want another option," he said.

Mr Kerr said the airline's approach was focused on assessing the potential in a region for generating economic growth - and ultimately increased passenger traffic - by removing existing constraints.

Marcus James, Jetstar's manager of government relations, said the airline was looking at making a long-term commitment to the regions it entered.

"This is a long-term play looking for growth," he said.

A number of major Tauranga business sectors were represented at the briefing. Representatives from Tourism BOP, Comvita, Bay Venues, Enterprise Angels, Priority One and others, as well as a number of leading business people, stressed the region's growth potential, as well as the access problems created as a result of current airline services and pricing.

Tauranga Airport manager Ray Dumble said he thought the briefing had gone well.

"This is a fantastic opportunity for Tauranga to get something it has wanted for a long time," he said. "The Jetstar team talked about needing growth and that's what Tauranga's all about."