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An Air New Zealand 747 lands in Sydney. - Source: Getty -
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New Zealand's national carrier looks set to gain from Qantas cutting its Auckland to LA service , though there is speculation budget airline Jetstar could try to grab a slice of the action.
After reporting a major dip in profit yesterday, Australian airline Qantas announced it will cut 500 jobs, drop the Auckland to Los Angeles route and end flights to London from Hong Kong and Bangkok.
Air New Zealand then announced its own expansion of the Los Angeles-bound route, adding extra flights to its 12 direct services a week.
A spokesperson for Air NZ said the company had no intention of raising airfares and Grabaseat deals to LA would continue.
Despite the lack of competition left in Qantas's wake, market analyst Ross Cuthbert told TV ONE's Breakfast he does not think Air NZ will be the sole LA-bound carrier for long.
"I would expect another competitor to step into the void and fill the competition on that route," said Cuthbert.
"Already people are talking about Jetstar, as a Qantas offshoot, as possibly stepping up and taking that route."
Jetstar, the discount brand of Qantas, boosted its share of the New Zealand domestic market by 5% last year despite its parent's financial slump.
National carrier Air NZ still controls around 80% of the market, and Virgin Airline's Pacific Blue, the subsidiary of Australia's Virgin Blue, quit New Zealand's domestic routes in October 2010.
