RyanairGuru wrote:... Jetstar have shown a solid commitment to the New Zealand market, especially by trying to compete on regional routes with Dash 8s, but the returns just aren’t there. That should be an indication of how large the market is for a new entrant.
Maybe the JQ Dash 8 offering was too small (while the A320 was too big) and something in the middle (ATR-72, 717, A220, E2, etc) would have had better economics, but JQ didn't have those aircraft to play with here.
I'd also add that what's a viable level of return for one carrier might be different to another - e.g. NZ dropping WAG, and 3C picking it up and sustaining it. Just because JQ pulled out doesn't mean it's unviable for all.