AirAsia is advising thousands of its Kiwi passengers to call its ''Customer Happiness'' team after quitting New Zealand for the second time in seven years.

The Malaysia-based airline says it will stop flying between Auckland and the Gold Coast from February 11 and about 2000 Kiwis have been hit by its withdrawal.

The budget airline will also scale back flying to across the Tasman from daily to four times a week from January 29 until it pulls out completely.

AirAsia has been flying from Kuala Lumpur to Auckland via the Gold Coast for the past two and a half years.

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A spokesman said the decision to suspend services to Auckland was a ''difficult one,'' but was made as we look to realign our network to focus on core markets such as Australia, India, China and Japan.

''AirAsia thanks those guests who have flown with us over the past 2-1/2 years and apologises for any inconvenience caused.''

The loss of the daily service will cut competition on the Tasman, with its 377-seat Airbus A330s providing some downward pressure on fares.

Helloworld executive general manager Simon McKearney said loyalty to well known carriers into the Gold Coast - Air New Zealand and Jetstar - made it difficult for AirAsia.

''New Zealand consumers are loyal to brands they know and trust and makes the sustainability of such routes for the lesser known carriers in our market susceptible,'' he said.

Other airlines would be assessing their presence here.

''I think, depending on airline hedging policies, that fuel movements will give rise to more of these single route carriers evaluate their returns and hence consideration of flying into markets such as New Zealand,'' said Mckearney.

Following the announcement, AirAsia said it will give full refunds, move travel forward or re-route their travel.

''Guests can also reach out to our Customer Happiness team,'' it says.

The airline is Southeast Asia's biggest budget carrier and favours point to point flying rather than stopovers.

It started flying to Christchurch from Malaysia in 2010 but quit that service following the 2011 earthquakes, blaming sagging demand at a time fuel prices were going up sharply.