10 years of Jetstar: the highs and lows
Thursday, 26 September 2019
Jetstar broke Air New Zealand's strangle hold on regional routes when it expanded its existing main trunk domestic network four years ago.
The result was a sharp drop in fares and a boon for regional tourism. But now it is the latest in a long line of airlines to wave the white flag at Air New Zealand.
The Qantas-owned low cost carrier will return its Q300 turboprop fleet to Australia and with them goes the only real competition that the national carrier had to the regions.
Jetstar will continue to fly between the main centres using its Airbus A320 jets.
**READ MORE:
* Jetstar reveals proposal to stop high-cost, loss-making regional flights from November
* Air NZ joins $9 price war, Jetstar announces new NZ routes**
While New Zealanders rejoiced at not having to pay $500 for a return flight from Wellington to Napier, it hasn't always been plain sailing.
Stuff takes a look at the highs and lows.
Jetstar comes to New Zealand
Jetstar launched its first trans-Tasman flights in 2005, and made a bumpy start on its domestic debut in 2009 competing with fellow combatants Pacific Blue and Air New Zealand.
At first an ill-thought-out schedule, inexperienced staff and inflexible check-in rules combined to descend its debut into near farce.
But Jetstar ushered in a new era for the domestic market, which was littered with past failures, most notably Ansett New Zealand, Qantas and Origin Pacific.
The airline replaced Qantas between Auckland, Wellington, Christchurch and Queenstown.
Prices dropped by around 40 per cent, Qantas chief executive Alan Joyce said at the time.
In 2010 Jetstar struck turbulence over an advertisement which claimed one million New Zealanders had made it their airline of choice. Jetstar said the advert was published to celebrate the 'one millionth passenger to have travelled domestically within New Zealand' since it launched in June 2009.
The Advertising Standards Authority said the advert was misleading because people would think that one million individuals had purchased tickets.
In 2013 Jetstar caused outrage by cancelling flights due to fog, despite clear skies.
Early morning services were cancelled between Auckland and Wellington and Auckland and Christchurch citing fog, leaving customers baffled because Air New Zealand flights were departing on time.
Punters took to social media. Student Nicole Botherway tweeted 'Air nz is flying… Jeez stop being stupid jetstar [sic]'.
In 2015 the carrier asked Kiwis which regional routes it should fly to.
In June 2015 the airline announced it would introduce new routes later that year. Hamilton, Rotorua, Napier, New Plymouth, Palmerston North, Nelson and Invercargill were all considered as options, and Jetstar launched a social media campaign asking customers which regions they most wanted serviced.
The move sent Air New Zealand's share price plummeting by 10 per cent.
Social media was delighted:
Well done Jetstar! Janet & I have just spent nearly $900 booking a return flight to Napier with @airnz Hopefully it'll be a lot cheaper soon
— Bill Ralston (@BillyRalston) June 18, 2015
The game changer: new regional routes
Then in August 2015, Jetstar announced new routes for Nelson, Napier, Palmerston North and New Plymouth, along side a four-hour promotion that saw 15,000 tickets snapped up at $9 each, and crashing its website.
Those regions delighted in the boost the routes would bring to local economies by giving tourism, business and leisure travel a boost.
The move sparked a price war.
Air New Zealand hit back, releasing hundreds of $9 fares to and from Hamilton, Rotorua, Tauranga and Invercargill, which it said had been 'left out' of Jetstar's plans, and announced it would slash two million flights to below $100 in the following year.
New routes create employment
Jetstar's new network created 150 new jobs, including about 55 pilot, 30 cabin crew and 80 ground crew positions. The routes began operating in December 2015 starting with Auckland to Nelson and Napier.
In February 2017 Jetstar left passengers stranded in Dunedin
A seven-hour fiasco where more than 100 Jetstar passengers were twice asked to board a plane that never took off, ended with the flight being cancelled – with a long wait ahead until the next one.
The Dunedin to Auckland flight was canned due to engineering issues. Upset travellers then faced hours of further delays, with only two shuttles available to take them from the airport back to town tovernight.
In September Jetstar announces it will pull out of the regions
Up to 20,000 people were booked on Jetstar regional flights scheduled after November 30 would be offered a refund. Air New Zealand is offering them a discount on replacement fares.
The budget carrier said it was losing money and the decision was based on fuel prices and weak demand.
Jetstar chief executive Gareth Evans said the airline was not 'cutting and running'. 'We've given it four years.'
Commentators said that it could mean higher prices in future if Air New Zealand was left as the only option.