Disappointment over Qantas cuts

Tourism operators are disappointed that Qantas plans to stop flying between Wellington and Christchurch from March.

Qantas New Zealand regional general manager Grant Lilly said that lack of demand and strong competition meant the route was not viable. The 1400 passengers booked to fly after March 11 are being contacted by the airline and will receive a full refund.

Analysts said it was a difficult route to make money on because 737 aircraft were being run over a short distance.

Christchurch and Canterbury Marketing chief executive Ian Bougen said it was always disappointing to see services lost to major cities.

"It is disappointing to see those services being lost and only time will tell what that means in terms of Air New Zealand's reaction," he told National Radio.

Analysts say Qantas was more likely to pull out of the domestic New Zealand market completely after regulators rejected a code-share proposal with Air New Zealand.

- NZPA