Jetstar's withdrawal from the Auckland-Singapore route will cost the tourism industry $70 million a year and highlights the potential detrimental effects of the proposed Air New Zealand-Singapore Airlines alliance, Auckland Airport says.
Jetstar will stop flying from Auckland to Singapore from July 21, saying the route is not performing as well as it had hoped and in the face of looming competition from a powerful Air New Zealand-Singapore Airlines strategic alliance.
Auckland Airport's general manager of aeronautical commercial, Glenn Wedlock, said the alliance - which needs government approval - was a factor for other airlines considering flying from Southeast Asia to the country.
He said the airport was talking to a number of Southeast Asian and North Asian carriers about flying here.
The announcement confirmed the concerns the airport expressed to Transport Minister Gerry Brownlee that the alliance could have detrimental impacts on the growth and promotion of competition in international air services.