Latest / Early Edition with Ryan Bridge / Irene King: Aviation Commentator on Jetstar making big moves to expand routes in NZ

Transcript

Irene King: Aviation Commentator on Jetstar making big moves to expand routes in NZ · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Jetstar is lighting a fire under air New Zealand. Biggest
• 0:03
  Speaker 1: ever expansion here, six hundred thousand extra seats. New routes
• 0:06
  Speaker 1: like Hamilton to christ Church great for the regions, Seasonal
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  Speaker 1: roots like Queenstown De Brizzy great for tourists Auckland christ Church.
• 0:13
  Speaker 1: You're getting an extra three hundred thousand seats a year
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  Speaker 1: from eight flights a day up to eleven. Irene Kings
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  Speaker 1: the aviation commentated with us this morning iron good morning.
• 0:22
  Speaker 2: Good morning there.
• 0:23
  Speaker 1: They've seen an opening here with these in New Zealand
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  Speaker 1: injury issues you reckon.
• 0:27
  Speaker 2: Oh absolutely, Look, I think this is a great endorsement
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  Speaker 2: of a recovery in the New Zealand economy from an
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  Speaker 2: international operator that actually understands a lot about the New
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  Speaker 2: Zealand market.
• 0:40
  Speaker 1: Is it also because they've been I mean I saw
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  Speaker 1: the Quantus results. They've got a bit of cash because
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  Speaker 1: they've been doing pretty well in Asia and other places.
• 0:49
  Speaker 2: Yes, absolutely, you know Quantus's balance sheet has been significantly
• 0:53
  Speaker 2: strengthening over the last two three years, as opposed to
• 0:58
  Speaker 2: in New Zealand, who we've seen a significant weekening. We've
• 1:02
  Speaker 2: also got capacity coming out of Asia as jet Stasia's
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  Speaker 2: shut down, and we've got additional aircraft coming into Quantus
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  Speaker 2: as well, so all of those things are combining and
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  Speaker 2: you know they're really starting to up their game now
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  Speaker 2: in New Zealand.
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  Speaker 1: Does that mean in New Zealand will have to lower
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  Speaker 1: their prices if we have six hundred and sixty thousand
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  Speaker 1: new low con seats.
• 1:27
  Speaker 2: Oh, look, you know this is a significant change. And yas,
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  Speaker 2: I've felt for quite some time that Any Zealant has
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  Speaker 2: to really come to grips with it's domestic pricing strategies
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  Speaker 2: now that they are subject to significant complaint and the
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  Speaker 2: sustainability when you look at, you know, the options you've
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  Speaker 2: got of traveling across to Australia now really really come
• 1:51
  Speaker 2: into question.
• 1:53
  Speaker 1: How much do you think we could be shaving off
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  Speaker 1: the average seat price?
• 1:58
  Speaker 2: Well, look, you look at what Jetster typically charged in
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  Speaker 2: the New Zealand market, which is just under one hundred
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  Speaker 2: dollars per seat orbit you know jet Sector here, any
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  Speaker 2: Zerment typically when you look at their charges around about
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  Speaker 2: two point fifty. So you know there's a significant price
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  Speaker 2: disparity between the two. Now I understand that the operators
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  Speaker 2: you know, are quite significantly different in the services that
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  Speaker 2: they provide and things like that. But New Zealand is
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  Speaker 2: a price driven sensitive market and even you're seeing, you know,
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  Speaker 2: corporate and business travelers shift onto jetst With this extra
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  Speaker 2: capacity that Jets is putting in the market, that shift
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  Speaker 2: is going to accelerate because every business is now priced sensitive.
• 2:54
  Speaker 1: I ren appreciate you announced this this morning. Thank you,
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  Speaker 1: Irene King, the aviation commentated Moor.
• 3:00
  Speaker 2: From early edition with Ryan Bridge.
• 3:02
  Speaker 1: Listen live to News Talks itt B from five am weekdays,
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