New LCC in......... New Zealand?

New LCC startup KiwiJet has been announced with Flat Fares from NZ$150.

Dominant Carrier Air New Zealand smells a rat and tells its staff to stop leaking confidential information since the idea sounds suspiciously like their own plans for a Domestic LCC. Company spokesman David Jamieson told staff in a memo though there was no evidence of a leak, "it was important they keep information commercially confidential".

The new airline will be reasonably well funded $20Million and backed by American Investors. Welcomed by leading Agency Chain - Australia's Flight Center - it comes as the Trans Tasman market is getting crowded with Emirates operating a lot of flights instead of letting its planes sit on the ground in SYD and MEL. At the same time a resurgent NZ is moving agressively into long Haul markets including now the only schedule RTW service.