Jetstar has struck back at Air New Zealand's pricing shake-up by slashing its own fares - offering 75,000 domestic flights for just $25.
The airline is offering a range of cheap fares from March 1-8 to destinations around the country.
This promotion comes in the same week that Air New Zealand announced its biggest pricing shake-up in a decade.
Earlier this week, the national carrier confirmed that it would offer 750,000 seats a year for less than $50 each.
Jetstar's response today set the stage for an all-out price war between the two airlines - with customers the big winners.
"We've been the low fares leader for domestic fares in New Zealand for nearly a decade," Jetstar chief customer officer Catriona Larritt said.
"Last year we sold nearly 600,000 domestic fares for under $50."
Flights included in the latest Jetstar promotion include $25 fares between Christchurch and Wellington, Auckland and Christchurch, and Wellington and Nelson.
"Whether it's visiting family and friends or exploring somewhere new in New Zealand, this is a chance for Kiwis to grab a really small fare in a really big sale," Larritt said.
This move also comes off the back of Jetstar reiterating its pledge to beat any fares by a competing airline on a similar flight by 10 per cent - meaning that astute deal hunters could get an even better deal than the prices promoted by the likes of Air New Zealand or third-party flight search sites.
In addition to the shake-up of regional flight pricing, Kiwi travellers also got some good news on the international front this week, with the announcement that Air Canada would be operating a seasonal direct route between Auckland and Canada.
The flights on Air Canada will operate out of Auckland on Monday, Wednesday, Thursday and Saturday.
A special introductory deal sees the fares selling as low as CDN$1387 (NZ$1541) for a round-trip.