13 Apr 2011

Jetstar plans to expand in Asia

8:34 am on 13 April 2011

Low cost airline Jetstar is looking to Asia for future expansion as the tourism market slowly recovers.

The Qantas subsidiary is battling soaring aviation fuel prices but says building scale is just as important during a slow economy.

Jetstar is making Auckland its 11th destination out of the Australian city of Cairns, connecting New Zealand to its hub for tourism from Asia.

The airline is now the largest low cost carrier in South East Asia, and its chief executive David Hall says there's plenty of room to grow in that market.

Mr Hall says high jet fuel prices are tough on the industry, but Jetstar is pulling in extra customers with its low-cost fares.