The public perception that Dunedin International Airport was more expensive for transtasman fares was simply not true, an Air New Zealand spokesman says.
Flights on the national carrier on transtasman routes were $10-$20 cheaper than from other airports, Air New Zealand Tasman Pacific general manager Glen Sowry said.
Dunedin was the cheapest place to fly with Air New Zealand across the Tasman in the South Island, and second only to Hamilton, he said.
"There is a perception among some members of the community that flying out of Dunedin is more expensive than other major cities, such as Christchurch.
Dunedin is 7% cheaper than Christchurch and double digits cheaper for Air New Zealand transtasman flights than Wellington or Auckland."
However, Mr Sowry admitted some fares on its subsidiary Freedom Air, which Air New Zealand replaced on March 30, were cheaper, but he said consumers were getting more for their money.
Air New Zealand flies four times a week to Brisbane and it announced this month it would reduce the Sydney-Dunedin flights from three to two between September and November.
In the peak summer months, more flights to other destinations such as Melbourne could be added if there was the demand, he said.
While the airline was pleased with the progress of flying out of Dunedin, more needed to be done to encourage people south of the Waitaki to use the airport rather than other airports, such as Christchurch, he said.
The airline were supporting the work of Project Gateway, which was an economic development initiative to increase tourism and business links between Australia and Dunedin, supported by the Dunedin City Council, Dunedin International Airport, Otago Chamber of Commerce and Tourism Dunedin.
"Project Gateway has been incredibly progressive, and Dunedin has been more pro-active than other destinations in promoting their region," Mr Sowry said.
Dunedin had every chance to succeed as not only a destination for Australian visitors, eager to try out eco-tourism, but also as a gateway to other areas such as Southland, Fiordland and Otago.
With transtasman flights into Invercargill some years away, Air New Zealand "was focused on making Dunedin successful".
Tourism Dunedin acting chief executive Hamish Saxton said it was encouraging that Air New Zealand could see the potential of Dunedin as a destination for Australian travellers.
In the year to 2007, transtasman flights to and from the city consisted of 55% New Zealand residents and 45% Australian.
"But we anticipate with Air New Zealand picking up the route the numbers would be closer to 50%.
"We are now expecting significant growth in the Australian market because of the Air New Zealand brand," Mr Saxton said.
