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Posted By Pru

Infometrics economist Benje Paterson looks at domestic aviation growth

Economist Benje Paterson explains that 2016 was a ground-breaking year for domestic aviation in New Zealand, with competition heating up following the launching of Jetstar regional services in December 2015 using a fleet of Q300 turbo-prop aircraft. The competition between Jetstar and Air New Zealand, coupled with low prices for jet fuel, put significant downward pressure on airfares and helped push domestic passenger numbers to record levels.  Growth was particularly strong in Jetstar’s four new regional destinations – Napier, New Plymouth, Palmerston North, and Nelson.

In the article published here Paterson analyses:

  • trends in domestic air travel prices
  • passenger volume growth
  • regional growth hotspots
  • what makes a region attractive to an airline, and
  • if Jetstar was to expand, where next?