Jetstar announces $1 fares on NZ domestic routes

Australian budget airline Jetstar has officially announced its assault on the domestic New Zealand air travel market with flights between Auckland, Christchurch, Wellington and Queenstown.

The Qantas subsidiary will start with two A320 aircraft from June 10 operating four city pair markets, before introducing a third A320 from June 24, subject to regulatory approval.

The airline is promising to beat any competitor by 10 per cent when booking at a similar date or time.

As part of the launch it will offer one-way internet-booked flights for $1 for travel between July 22 and September 22.

The $1 flights will be available for two hours from midday today unless seats sell out.

It will also offer web-booked one-way fares from $29.

The Jetstar services will replace Qantas' domestic flights in New Zealand.

"We won't be beaten on price and our low fares will take Jetstar into a price leadership position in domestic New Zealand markets backed by the Jetstar price beat guarantee," said Jetstar chief executive Bruce Buchanan.

Jetstar's entry in to the domestic New Zealand aviation market would result in up to 250 direct jobs under a newly established subsidiary and New Zealand flying business.

In June Jetstar will base a fleet of six A320s here, spread evenly between Christchurch and Auckland to support the carrier's domestic New Zealand and transTasman operations.

A Qantas code share will be offered on all Jetstar domestic and transTasman New Zealand services, including Qantas customers who hold a Qantas International and/or Tasman sector in the same itinerary.