KEY POINTS:
Rotorua put on a brave face after learning Qantas was pulling out of the city.
The airline flies five times a week between Rotorua and Christchurch but its subsidiary, Jetstar, will not serve the city when it moves into the domestic market in June.
Rotorua mayor Kevin Winters said the announcement was "a relatively minor and temporary hiccup for the city, but one that could have a silver lining in the future".
The city is spending more than $10 million extending its runway and upgrading its terminal and other works in the hope of attracting more services from across the Tasman.
Qantas' decision had not been a surprise.
"It's one of the reasons we have been working so hard to get the airport extended to cope with larger jet aircraft," Mr Winters said.
Air New Zealand would continue to operate 19 Rotorua-Christchurch services a week.
