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Speaker 1: Jetstar is lighting a fire under air New Zealand. Biggest

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Speaker 1: ever expansion here, six hundred thousand extra seats. New routes

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Speaker 1: like Hamilton to christ Church great for the regions, Seasonal

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Speaker 1: roots like Queenstown De Brizzy great for tourists Auckland christ Church.

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Speaker 1: You're getting an extra three hundred thousand seats a year

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Speaker 1: from eight flights a day up to eleven. Irene Kings

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Speaker 1: the aviation commentated with us this morning iron good morning.

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Speaker 2: Good morning there.

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Speaker 1: They've seen an opening here with these in New Zealand

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Speaker 1: injury issues you reckon.

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Speaker 2: Oh absolutely, Look, I think this is a great endorsement

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Speaker 2: of a recovery in the New Zealand economy from an

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Speaker 2: international operator that actually understands a lot about the New

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Speaker 2: Zealand market.

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Speaker 1: Is it also because they've been I mean I saw

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Speaker 1: the Quantus results. They've got a bit of cash because

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Speaker 1: they've been doing pretty well in Asia and other places.

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Speaker 2: Yes, absolutely, you know Quantus's balance sheet has been significantly

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Speaker 2: strengthening over the last two three years, as opposed to

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Speaker 2: in New Zealand, who we've seen a significant weekening. We've

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Speaker 2: also got capacity coming out of Asia as jet Stasia's

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Speaker 2: shut down, and we've got additional aircraft coming into Quantus

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Speaker 2: as well, so all of those things are combining and

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Speaker 2: you know they're really starting to up their game now

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Speaker 2: in New Zealand.

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Speaker 1: Does that mean in New Zealand will have to lower

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Speaker 1: their prices if we have six hundred and sixty thousand

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Speaker 1: new low con seats.

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Speaker 2: Oh, look, you know this is a significant change. And yas,

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Speaker 2: I've felt for quite some time that Any Zealant has

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Speaker 2: to really come to grips with it's domestic pricing strategies

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Speaker 2: now that they are subject to significant complaint and the

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Speaker 2: sustainability when you look at, you know, the options you've

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Speaker 2: got of traveling across to Australia now really really come

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Speaker 2: into question.

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Speaker 1: How much do you think we could be shaving off

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Speaker 1: the average seat price?

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Speaker 2: Well, look, you look at what Jetster typically charged in

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Speaker 2: the New Zealand market, which is just under one hundred

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Speaker 2: dollars per seat orbit you know jet Sector here, any

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Speaker 2: Zerment typically when you look at their charges around about

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Speaker 2: two point fifty. So you know there's a significant price

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Speaker 2: disparity between the two. Now I understand that the operators

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Speaker 2: you know, are quite significantly different in the services that

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Speaker 2: they provide and things like that. But New Zealand is

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Speaker 2: a price driven sensitive market and even you're seeing, you know,

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Speaker 2: corporate and business travelers shift onto jetst With this extra

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Speaker 2: capacity that Jets is putting in the market, that shift

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Speaker 2: is going to accelerate because every business is now priced sensitive.

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Speaker 1: I ren appreciate you announced this this morning. Thank you,

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Speaker 1: Irene King, the aviation commentated Moor.

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Speaker 2: From early edition with Ryan Bridge.

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Speaker 1: Listen live to News Talks itt B from five am weekdays,

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