Air New Zealand has announced it will boost domestic capacity - including the Dunedin-Auckland sector by nearly 50% next year - just a week after Pacific Blue announced it would leave the New Zealand domestic market.
Chief executive Rob Fyfe announced capacity from Auckland to Dunedin and Queenstown would be increased following the arrival of the airline's new A320 aircraft in February.
Auckland-Dunedin flights will increase from 13 to 19 flights a week, upping capacity 46%, and the Auckland-Queenstown sector would rise 13.6%, with 27 flights a week.
Mr Fyfe singled out both Queenstown and Wanaka as destinations which have experienced growth, and "we are delighted to increase the number of flights into and out of this region".
"New Zealand regional markets are constantly changing and we adapt our business quickly to any changes in demand. While sometimes this means reducing services, wherever possible we are looking to stimulate demand and grow services," he said.
Dunedin International Airport chief executive John McCall said the announcement of additional services was "very good news" for the company, and for travellers.
The announcement comes just a week after Pacific Blue announced withdrawing from the New Zealand domestic market, resulting in the loss of seven Auckland-Dunedin and two Auckland-Queenstown services.
Mr McCall said the Dunedin-Auckland route had been a proven performer for both Pacific Blue and Air New Zealand, and it was pleasing the airline recognised the potential in the route.
While Jetstar had been tipped by some to compete in the Auckland-Dunedin route following the exit of Pacific Blue, there were no announcements to be made on that front, Mr McCall said.
Meanwhile, Mr Fyfe said following Pacific Blue's announcement, the airline was reviewing its domestic capacity.
"We have significant growth plans for our domestic jet operation with capacity increasing by 8% progressively from September."
Other domestic capacity increases include, Auckland-Wellington (9.0%), and Auckland-Christchurch (10.4%).
"Our services between Auckland, Wellington, Christchurch, Queenstown and Dunedin have been experiencing a steady increase in demand over recent months and this has given us the confidence to add capacity back into these markets."
