Origin Pacific Airways is to provide 78 more seats a day on flights between Rotorua and Christchurch.
The airline announced yesterday it is adding two 64-seat aircraft to its fleet.
At present Origin Pacific operates one 50-seat flight a day between Rotorua and Christchurch. In August, that flight will be replaced withone of the new 64-seater aircraft.
In October, the other 64-seater will start a second daily service between Rotorua and Christchurch.
The move effectively means there will be 78 more available seats between the two cities each day.
Origin Pacific's regional general manager, Peter Collins, told The Daily Post the main reason for the increase was to cater for inbound visitor markets.
The airline's managing director, Robert Inglis, yesterday said the two new ATR-72 aircraft, leased from a German airline, would operate under the Nelson-based airline's code share agreement with Qantas.
The planes would more than double the number of seats offered by Qantas on key routes, he said.
Mr Inglis said the new aircraft, due to arrive in New Zealand on July 15, would take Origin Pacific's fleet to 15 turboprop aircraft. It meant another 20 jobs for the company. These would be mainly for crew.
Rotorua Regional Airport Company chairman Johnny Lepper said he had heard Origin Pacific was keen to come to Rotorua and was thrilled it had now been confirmed.
The news proved Rotorua was a major national destination, Mr Lepper said.
"As soon as we get our extended runway in place, there is no doubt the airlines will be putting in big planes to cater for large tourist groups."
The extra flights would also help plug the gap left behind by Whisper Jets, he said.
Air New Zealand provided Rotorua with four 90-seater Whisper Jets following the collapse of Qantas New Zealand last year. The move was always temporary with the last of the jets flying out of Rotorua on Saturday.
Mr Lepper said at times there were a "dire shortage" of seats on aircraft coming in and out of Rotorua.
"These extra seats are going to be a big help, not only for tourists, but Rotorua people wanting to travel out of the area."
The added competition would be good news in ensuring flight prices were kept to a realistic amount.
