Kiwi Shuttles, which operates three airport shuttles, cut its fares from $20 to $10 to take business away from its competitors, owner/operator driver Kiran Kumar said.
"Our business is now doing very well and we are happy about it.
"Because they took our jobs."
Mr Kumar said the "price war" was aimed at national franchise Super Shuttle, which successfully tendered for airport licences late last year.
The number of shuttle companies able to use the designated rank from October 1 reduced from 12 to two operators; Super Shuttle, with 12 shuttles, and Southern Taxis, with two.
As a result of missing out on a tender and then a Super Shuttle franchise, Mr Kumar said business suffered as he was no longer allowed to wait for airport passengers unless a booking had been made.
However, since Kiwi Shuttles had dropped its price "business had been booming".
"It is now the same price as in 1990 when I started with the shuttles.
"I think it should stay that price."
Super Shuttle charges $33 to take a single passenger from the airport to the city centre, and $8 for any additional passenger.
Other operators charge $20-$30 for the same 30km route.
A Super Shuttle spokesman said the company would not be entering into any price war.
One taxi driver, who did not want to be named, said a typical fare from central Dunedin to the airport was $80 and charging $10 per shuttle passenger was "madness".
"They are just going to hurt everyone."
Dunedin International Airport chief executive John McCall said Kiwi Shuttles could charge what it liked, but could not pick up casual customers from the airport unless a customer had pre-booked the service.
