Low-cost airline Pacific Blue could soon be winging its way into Queenstown, bringing cheap fares and boosting tourism.
Direct flights linking the resort with main centres Auckland, Wellington and Christchurch could be included in plans for an expanded domestic service covering the lower South Island, Pacific Blue general manager commercial Adrian Hamilton-Manns confirmed yesterday.
The airline had already held ‘‘formative'' talks with Queenstown Airport management and more talks were planned, he said. It was hoped the service could start later this year, although it was too early to commit to a firm timeline.
The new service could see the cost of a one-way fare between Queenstown and Christchurch reduced to between $79 and $100, he said.
The airline was also continuing talks with Dunedin and Invercargill airport management and expected to make an announcement ‘‘shortly'' about which of the two southern cities would also become a Pacific Blue destination, he said.
The expanded southern service would ultimately see the airline flying to Queenstown and one of the two southern cities, but not both, he said.
In Queenstown, significant issues remained and would need to be resolved as part of any agreement, for example finding additional space for more check-in counters inside the airport terminal, he said.
Despite the hurdles, the airline was encouraged by initial talks and the Queenstown market potential, he said.
‘‘We feel Queenstown is horrendously overcharged and very expensive to get there, and a low-fare airline like Pacific Blue is just what it needs to stimulate growth. What damage is a $400 airfare doing to tourism in Queenstown? That money is better spent on exciting experiences,'' he said.
The airline's fledgling domestic service, launched last year, had already carried more than 250,000 passengers between the three main centres. Domestic passenger numbers were up 30% at Wellington airport, 19% at Auckland airport and 18% at Christchurch airport.
He also hinted that direct transtasman flights between Queenstown and Australian airports could be added in the future.
‘‘All of the opportunities out of Queenstown domestically and transtasman greatly interest us,'' he said.
Queenstown Airport Corporation chief executive Steve Sanderson yesterday said it was hoped the talks could be concluded ‘‘within weeks'', but ‘‘these things can always take longer than you think''. He declined to discuss details because the information was commercially sensitive.
Destination Queenstown general marketing manager Graham Budd said a low-cost Pacific Blue service would provide a welcome boost for the resort's key domestic markets in Auckland and Wellington.
Earlier this month Destination Queenstown urged more emphasis on domestic and Australian markets, due to flagging visitor numbers across key international markets.
Mr Budd said restricted seat capacity was also an issue constraining tourism growth for Queenstown, despite ‘‘good support'' from Air New Zealand and Qantas.
‘‘We don't want airline seats to be a constraint at all, so we would welcome the extra capacity, as well as the competition that would inevitably bring in terms of fares,'' he said.
Queenstown Chamber of Commerce chief executive Christie Clark said the talks were ‘‘very exciting and very promising''.
‘‘At a time where things are reasonably static in terms of tourism numbers, this would be quite a nice injection of the domestic traveller.
‘‘It's just a matter of time . . . I think it's incredibly important for our region,'' she said.
