Air New Zealand has responded to Jetstar's announcement saying as more competition comes into the domestic market it is well positioned to "relish the opportunities ahead".
"Earlier this month, we introduced lower lead-in fares on several Napier routes, for travel from 12 October 2015," a company spokesperson said.
"For example, the lead-in fare on the Auckland to Napier route has been reduced to $59, from $79, the lead-in on Christchurch to Napier is now $69 and Wellington to Napier fares will now start from $59.
"So, as more competition comes into the domestic market, which is currently served by at least half a dozen operators offering passenger services between various cities and towns, we are well positioned and relish the opportunities ahead."
The spokesperson concluded saying initiatives that have been in the pipeline for the past 18 months are starting to roll out and will further cement Air New Zealand's market leading position.
