Kiwijet
Kiwijet was a proposed New Zealand low-cost airline that never began scheduled operations.
Last updated August 25, 2026
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Overview
Kiwijet was a proposed low-cost airline venture in New Zealand, announced in 2007 with the ambition of becoming the country's first all-jet regional airline. The project was designed to serve domestic cities and, in some versions of its plan, provide feeder traffic for international airlines that lacked a New Zealand domestic partner. It never progressed to commercial flight operations and ultimately disappeared after repeated changes to its business model, aircraft plans, launch schedule, and financing. The initial proposal envisaged operating at least two Boeing 737 aircraft from Auckland to Christchurch, Dunedin, and Invercargill, with fares advertised as potentially as low as NZ$150. Kiwijet subsequently pursued the purchase of Jetconnect, a New Zealand subsidiary associated with Qantas, and the proposed transaction contributed to a delay in its launch plans. When that deal failed in June 2007, the company announced an alternative strategy based on Embraer ERJ 145 aircraft. Under this version, Christchurch would become the airline's hub and the network would cover nine cities, with the airline also seeking to feed traffic to overseas carriers. The aircraft and network concept changed again during 2007. Kiwijet first discussed a seven-aircraft launch, but later said that sourcing, certifying, and maintaining its preferred ERJ 145 variant in New Zealand was too difficult. In September 2007 it announced a plan to start instead with four Avro RJ-100 aircraft and serve seven cities. The company continued to revise its intended timetable: it discussed establishing an office in early 2008 and launching by the end of that year, then moved the expected start of operations to February 2009. The venture was overtaken by deteriorating aviation and financial conditions. Rising fuel prices during 2008 led to another postponement, initially to March 2009 and then indefinitely after the original backers withdrew amid the global credit crisis. In October 2008, directors revived a smaller proposal involving two BAe 146QT-type freighter aircraft. Freight operations were intended to begin in early 2009 and serve as route surveys before a later passenger launch. The plan was supported by the sharp fall in jet-fuel prices and more favorable foreign-exchange assumptions, but the global economic downturn at the beginning of 2009 prevented the revised project from reaching operation. The directors subsequently returned to the United States, and no later operating activity was reported. Airport officials in Nelson and Christchurch later indicated that they had received no specific operational information beyond Kiwijet's proposals to serve their airports.
History
Kiwijet emerged in May 2007 as a proposed low-cost airline for New Zealand. Its stated ambition was to create an all-jet regional carrier serving domestic cities that were already connected by established airlines. The first reported concept involved two or more Boeing 737 aircraft operating from Auckland to Christchurch, Dunedin, and Invercargill, with fares potentially starting at NZ$150. At this stage, the airline was targeting a November 2008 launch. The project soon became associated with an attempted acquisition of Jetconnect, a Qantas-related New Zealand subsidiary. The bid delayed Kiwijet's independent launch planning, but the proposed transaction collapsed in June 2007. Kiwijet then announced a substitute plan, described as “plan B,” involving Embraer ERJ 145 aircraft. This version was intended to connect nine cities from a Christchurch hub and to provide feeder traffic to overseas airlines that did not have a domestic New Zealand partner. During the second half of 2007, Kiwijet continued to refine its proposed operating model. It discussed hiring senior operational personnel and launching with as many as seven aircraft. In September, however, the company acknowledged practical difficulties in sourcing, certifying, and maintaining the specific ERJ 145 variant it wanted to use in New Zealand. It therefore changed aircraft type again, proposing four Avro RJ-100 aircraft and a seven-city network. The repeated revisions reflected the difficulty of assembling a viable fleet and regulatory infrastructure before operations had begun. Kiwijet's timetable also moved repeatedly. In December 2007, the company said it expected to open an office in February 2008 and hoped to commence flights before the end of that year. By February 2008, it had deferred the proposed start until February 2009 while negotiating with another airline over a feeder arrangement. Rising fuel prices then made the passenger model less attractive, and the launch was shifted first to March 2009 and subsequently postponed indefinitely. The financial environment deteriorated further during the global credit crisis. Kiwijet's original backers withdrew, effectively ending the principal passenger-airline plan. In October 2008, directors announced a smaller revival based on two BAe 146QT-type freighters. They proposed beginning cargo flights in early 2009, using the operations as route surveys before introducing passenger services later in the year. The revised concept relied partly on lower jet-fuel prices and a more favorable United States dollar-to-New Zealand dollar exchange-rate outlook than had been assumed earlier in 2008. The freight restart did not occur. The worldwide economic downturn at the start of 2009 removed the remaining prospect of a near-term launch, and no subsequent operating activity was reported. The directors returned to the United States. Although Kiwijet had discussed serving airports including Nelson and Christchurch, officials at those airports later said they had not received specific operational information from the proposed airline beyond its stated intentions. Kiwijet therefore remained a planned carrier rather than an operating airline and is treated as defunct or failed before launch.
- 2009
Project disappears without commencing operations
[1]The global economic downturn prevented the proposed freight and passenger launches, and no later activity was reported.
- 2008
Passenger launch repeatedly deferred
[1]Fuel-price increases and financing problems pushed the planned launch from 2008 into 2009 and then indefinitely.
- 2008
Freighter restart proposed
[1]Directors proposed using two BAe 146QT-type aircraft for freight operations as a preliminary step toward possible passenger services.
- 2007
Kiwijet announced
[1]The proposed low-cost airline was announced with an intended November 2008 launch and an initial Boeing 737-based domestic network.
- 2007
Jetconnect acquisition plan collapses
[1]Kiwijet reported that its attempt to acquire Jetconnect had failed and introduced a revised regional-airline strategy.
- 2007
Christchurch selected as proposed hub
[1]The company announced a Christchurch hub and an Embraer ERJ 145 plan intended to serve a wider domestic network.
- 2007
Fleet plan changes to Avro RJ-100 aircraft
[1]Kiwijet abandoned its preferred ERJ 145 variant because of sourcing and certification difficulties and proposed four Avro RJ-100 aircraft instead.
Products and positioning
Kiwijet positioned itself as a low-cost, all-jet regional airline intended to broaden domestic competition in New Zealand and connect regional cities with larger domestic and international networks.
Airline service
Domestic passenger services
Kiwijet planned low-cost scheduled flights linking Auckland and other New Zealand cities. The network changed several times, with proposals involving Christchurch, Dunedin, Invercargill, Nelson, and additional regional destinations. These services were never launched.
Regional airline service
International feeder services
One revised business plan envisioned Kiwijet carrying passengers into an international airline network as a domestic feeder, particularly for foreign carriers without an established New Zealand partner. The concept remained at the planning stage.
Air freight
Freight services
The final reported revival plan involved two BAe 146QT-type freighters. Cargo flights were intended to begin in early 2009 and also function as route surveys before a potential passenger operation. No evidence indicates that these services commenced.
Controversies
Brand decisions
2008
Shift toward a freighter-first modelStrategyBackground
Fuel-price volatility, the withdrawal of original backers, and the global credit crisis undermined the proposed passenger launch.
Action taken
Directors proposed starting with two BAe 146QT-type freighters and using cargo routes as a prelude to later passenger services.
Aftermath
The global economic downturn prevented the revised launch, and the airline never began operations.
2007
Attempted acquisition of JetconnectM&ABackground
Kiwijet sought to acquire Jetconnect while developing its initial airline launch plan.
Action taken
The proposed transaction was abandoned after Kiwijet announced in June 2007 that the deal had fallen through.
Aftermath
Kiwijet moved to an independent regional-airline concept based on Embraer ERJ 145 aircraft and a Christchurch hub.
2007
Change from Embraer ERJ 145 to Avro RJ-100 aircraftGeneration changeBackground
The company reported difficulties obtaining, certifying, and maintaining its desired ERJ 145 variant in New Zealand.
Action taken
Kiwijet proposed launching with four Avro RJ-100 aircraft instead and reduced the planned network to seven cities.
Aftermath
The revised fleet plan still did not lead to commercial operations.
Recent events
- 2008
Launch postponed amid fuel-price and financing pressures[1]
Bankruptcy
Kiwijet delayed its intended launch as aviation fuel prices rose and its original financial backers withdrew during the global credit crisis.
- 2008
Kiwijet revives project as proposed freight carrier[1]
Product launch
Directors proposed restarting Kiwijet with two BAe 146QT-type freighters, with cargo operations intended to precede a possible passenger service.
- 2007
Kiwijet announces proposed low-cost airline[1]
Other
Kiwijet announced plans to establish a low-cost New Zealand airline using jet aircraft and to serve several domestic cities.
- 2007
Proposed Jetconnect acquisition fails[1]
M&A
Kiwijet said that its attempt to acquire Jetconnect had fallen through and presented a revised operating plan based on regional jets and a Christchurch hub.
- 2007
Kiwijet changes aircraft and network plans[1]
Product generation
After difficulties sourcing, certifying, and maintaining the desired Embraer aircraft variant in New Zealand, Kiwijet shifted toward four Avro RJ-100 aircraft serving seven cities.
Sources1 sources
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