Sept 25 (Reuters) - Australian low-cost airline Jetstar, a unit of Qantas Airways Ltd QAN.AX , said on Wednesday it will be terminating its loss-making regional Q300 turboprop services in New Zealand in November end.
The Melbourne-headquartered airline, which began flying to the regional centres in New Zealand in late 2015, currently offers up to 130 return services a week during the peak season across five routes in New Zealand.
Jetstar said the move would not impact its other domestic and international jet services in New Zealand.
"The New Zealand regional market is facing some headwinds, with softer demand and higher fuel costs and we don't see the outlook changing any time soon," said Jetstar Chief Executive Officer Gareth Evans.
The airline said it would begin a consultation process on Wednesday with about 70 affected employees and a final decision was expected before October end.
"Alternative employment options would be available for all affected Jetstar regional employees – made up chiefly of pilots and cabin crew – across Jetstar and Qantas Group businesses in New Zealand and Australia," it said.
Jetstar customers booked on regional services after Nov. 30 will be offered options, including a full refund, it said.
Separately, Air New Zealand said it would offer discount airfares to Jetstar customers affected by the low-cost airline's decision.
New Zealand's flag carrier also said it would not increase its lowest lead-in fares on the routes affected by Jetstar's withdrawal until at least the end of 2020.