Jetstar to add extra Airbus to NZ fleet

Jetstar Group has a new interline agreement with Air France and KLM, giving them access to airline hubs in Paris and Amsterdam. Photo / Greg Bowker

Low-fare airline Jetstar is expanding its New Zealand operations and considering direct long-haul flights to North America and Asia.

Jetstar said it would base a seventh Airbus A320 aircraft in New Zealand later this year, which could fly domestic or international routes.

The company was also considering deploying two-class A330-200 aircraft to support long-haul international services to New Zealand.

Chief executive Bruce Buchanan said the company was looking at direct services to Asia and North America and three or four new routes on the Tasman.

"We'll launch in the next couple of weeks if we're going to do any of those long-haul flights ... we're in the final phases of discussions with airports and partners and we're going to make announcements and decisions imminently," Buchanan said.

"If we were going to deploy [A330 aircraft] into New Zealand, initially it'd be one aircraft and then we build up the capability and then we'd deploy more, so that's the way that it tends to work."

The company would progressively unveil additional services during the next six weeks, Buchanan said.

Jetstar currently flies six A320 aircraft in New Zealand split between domestic and transtasman services.

The seventh A320 would create about 50 airline jobs in Jetstar's New Zealand operations, including in pilot, cabin crew, engineering and airport customer services, the company said.

An extra 50 jobs would also create 350 indirect jobs Buchanan said.

Virgin Blue, which operates Pacific Blue airline, is reviewing its entire airline network, including New Zealand domestic operations.

First NZ Capital analyst Jason Familton said there had been rumours it was not sustainable to have three players in the New Zealand market.

Buchanan said Jetstar welcomed competition whether it was other airlines or airports because it was good for consumers and got rid of complacency.

"We pull off routes every now and again, every airline does, if you can't make it work you put your growth somewhere else," Buchanan said.

"Whatever they do we'll be happy filling whatever void in the market place they leave."

Virgin Blue said no decisions had been made at this stage.

Jetstar Group of Airlines this week entered into an interline agreement with Air France and KLM encompassing those airlines' hubs in Paris and Amsterdam and Jetstar's nearly 60 ports.

Air France KLM senior vice-president Marnix Fruitema said the agreement was a strategic move towards improving product offering in a fast-growing region of the world.

"By joining forces with Jetstar we are offering more choice in destinations between Europe and the Asia Pacific," Fruitema said.

Jetstar executive manager commercial David Koczkar said the partnership would provide new opportunities for customers to more easily travel to Jetstar's nearly 60 destinations across the Asia Pacific region and supported the airline's position as the largest low-cost carrier in Asia Pacific.

"Importantly, I also expect that this partnership will have a positive impact on increasing accessibility for customers within our domestic networks in Australia, New Zealand and Vietnam, leading to significant benefits for each of these local tourism industries," Koczkar said.

Buchanan said Air France and KLM was one of the biggest mergers in airline history.

"We've seen United Continental, we've seen Delta Northwest, I mean these are massive carriers now and we're seeing consolidation for the first time which this industry needs, we've got too many companies."