Air New Zealand Calls for End to Jetstar Airport Subsidies
Air New Zealand CEO Nikhil Ravishankar has called on major airports across the country to stop offering what he describes as “open-ended” financial incentives to rival Jetstar Airways. He argues that these ongoing subsidies distort competition and disadvantage the national carrier, particularly on high-traffic domestic routes.
Speaking to BusinessDesk, Ravishankar said that while introductory discounts for new routes are standard practice, continuous incentives on profitable trunk routes allow Jetstar—operated by Qantas Group—to undercut fares without providing service to unprofitable but essential regional destinations. He warned that this undermines Air New Zealand’s ability to cross-subsidise secondary routes that he considers “critical infrastructure” for national connectivity.
The New Zealand Airports Association and Auckland International Airport rejected the accusations as “absurd,” noting that Air New Zealand controls roughly 86% of the domestic market. They argue that incentive programs promote competition and help keep airfares affordable, adding that the national carrier should focus on resolving its own capacity challenges and pricing issues.
The debate highlights growing tensions in New Zealand’s domestic aviation sector as airlines and airports navigate post-pandemic recovery, rising costs, and shifting demand patterns.
Related News: https://airguide.info/?s=Jetstar+Airways, https://airguide.info/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com