Queenstown Airport Corporation chairman Mark Taylor is unfazed by the announcement a low-cost airline will fly an extra 70,000 passengers from Kuala Lumpur to Christchurch each year, saying yesterday the airline's parent carrier already flies to Queenstown's "strategic alliance" partner, Auckland International Airport.
Mr Taylor was asked to comment on a deal signed by Christchurch International Airport, Christchurch Mayor Bob Parker, New Zealand's High Commission for Malaysia and Malaysian-based Air Asia X.
Details of the Christchurch deal will be released over the next few weeks.
The new low-cost, long-haul flights could bring in an estimated $70 million to Christchurch each year, Mr Parker said.
Mr Taylor said the fact parent company Air Asia serviced Auckland may be one of the reasons why Air Asia X went to Christchurch.
When asked why the budget carrier did not choose Queenstown Airport, he said: "It's a long haul flight; we only operate in the transtasman arena.
They'll be using wide-bodied, long-haul planes that Queenstown can't facilitate.
"Christchurch is the South Island hub - they are the only airport with long haul capabilities and prospects - so I would imagine they would be very happy to grow their long-haul capabilities.
"A significant portion of those who come into Auckland come into Queenstown anyway and it's the same with Christchurch.
"As you grow these long-haul routes, you just increase the numbers coming to Queenstown."
Jim Boult, chief executive of Christchurch International Airport, said the entry of Air Asia X was "really big news for the South, as the large majority of these people will end up in Queenstown, or elsewhere in Otago and Southland".
"This is the first low-cost airline to connect the South Island, and in fact New Zealand, to the greater Asian area.
"Air Asia have a vast network throughout Asia, and hub their services out of Kuala Lumpur.
"So this gives us access right through Asia ...
"Their fare package will also be outstanding and will attract a wide market that we haven't seen before."
Destination Queenstown chief executive Tony Everitt said yesterday "a fairly significant portion" of the predicted 70,000 extra visitors would visit Queenstown.
The new route had been on the cards for some time.
There was a lot of interest in Queenstown during the Kiwi Link Asia travel trade event last month.
The Asian market had been constrained by a shortage of seats at peak times.
An extensive network from all over Southeast Asia, India, and southern China flew into Kuala Lumpur, with Japan to follow.
Asian tourists had money and wanted to spend it, Mr Everitt said.
Dunedin International Airport chief executive John McCall said the Air Asia X announcement was a fantastic opportunity for the tourism industry"It is amazing for Christchurch, and will have a trickle-down effect for the South Island."
Mr McCall said Dunedin was likely to benefit from an increase in domestic traffic as a result of the announcement.
University of Otago Centre for Air Transport Research director Dr David Duval said the flights - if they did not siphon passengers away from Auckland - would result in more traffic to New Zealand.
While the airline did not have the networks of other carriers, there was potential to grow the market, as the South Island was an enormous drawcard to visitors.
