Shane Jones is "incredibly disappointed" at airline Jetstar's proposal to pull out of regional New Zealand, saying his "deep fear" is that Air New Zealand will begin to price gouge.
Today, Jetstar announced its proposal to withdraw from flying to the regions at the end of November, set to impact Nelson, Napier, New Plymouth and Palmerston North.
"I'm incredibly disappointed this Aussie owned company has decided to bail out," Regional Economic Minister Shane Jones said this afternoon.
"It's a case of international capitalism."
On if he would meet with Jetstar over the proposal, Mr Jones said, "if I want to talk to any corporate, as the 'provincial champion', I'll be doing it 24/7".
When asked the last time he flew with Jetstar, Mr Jones said "I fly to Kerikeri, they don't fly to Kerikeri".
"In a funny way it makes for (outgoing Air New Zealand CEO) Christopher Luxon and myself for strange bed fellows, because I've been told my rhetoric against Air NZ dropped their fares and increased the pressure on Jetstar - that's a lot of rubbish but may suit my political ego."
Mr Jones has taken aim at Air NZ, saying last year he was "thoroughly unimpressed" with its treatment of regional services after they pulled out of the Kāpiti Coast and Kaitaia.
Today he said he was already in contact with Air New Zealand.
"Any notion I am going to shut up and stop talking to corporate New Zealand, whoever is telling you that is sadly mistaken about the DNA of matua Shane Jones.
"My deep fear is that Air New Zealand will begin to gouge and there are a variety of remedies there."
He said one remedy was for the Government to help the tertiary and secondary airline companies, "but unfortunately the creation of a air connectivity fund suffered and disappeared into the ooze, otherwise known as the bureaucracy of the Ministry of Transport".
Finance Minister Grant Robertson would not be telling Air New Zealand to not increase prices in the areas where Jetstar is proposing to pull out of.
"Clearly there is an expectation from New Zealanders that there are fair prices... we'll keep an eye on that."
He said it was a shame to see competition decline of the routes.
Jetstar chief executive Gareth Evans said the proposal to axe regional flying was due to the operation continuing to make a loss, combined with rising fuel costs and a softening of demand in the regional travel market.
Air New Zealand has since offered discounted airfares to Jetstar customers.
Affected customers would be able to purchase an Air New Zealand seat-only fare for the same route on the same day, schedule permitting, for up to $50 each way.
In a press conference, Commerce and Consumer Affairs Minister Kris Faafoi said, "There's always an opportunity in these things for locally-based carriers to get in there as well … There's always an opportunity in a crisis."
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