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Kiwijet plans on track for now

Published: 10:24AM Wednesday May 28, 2008 Source: ONE News

Budget airline Kiwijet says it is going to continue to develop its dometic services at least until the end of the year.

Kiwijet announced its intentions to service eight New Zealand cities July last year with the initial intention of flying by November this year. Then in February it delayed its planned start up date until February 2009.

Chief Executive Patrick Weil says the company has secured funding through the next six months, but world oil prices will impact their plans.

"Our analysts expect oil to top out at US $ 161.00 per barrel by December, and depending on the outcome of the election (US) should begin to fall sharply to around US $100.00 per barrel by January 2008," he says.

Weil says as long as the forecast remains accurate Kiwijet will move forward with its plans.

He says if oil falls the company will be in a much better position to lease aircraft at a good price.