New cut-price domestic airline on the way?

American and Japanese investors are looking at launching a new domestic airline in New Zealand.

Kiwijet is the brainchild of US aviation specialist Patrick Weil. He says the country is ready for a simplified, cost-effective form of domestic air travel.

The fledgling airline would initially fly two Boeing 737s between Auckland, Christchurch, Dunedin and Invercargill.

All fares would cost a flat $150.

Mr Weil says Kiwijet is considering bidding for acquisition of an existing domestic airline and hopes to be operating by the end of the year.

- NEWSTALK ZB