Air New Zealand says its purchase of new planes will result in lower airfares.
The national carrier plans to spend $340 million on seven new aircraft for regional services.
It says the 68-seat planes from European manufacturer ATR will give it the ability to run an extra 100 flights a day once all the aircraft have arrived.
Air New Zealand's general manager for Australasia says with more flights available, the number of cheaper seats will certainly increase for some routes.
Bruce Parton told Checkpoint the airline is aiming to drop airfares by 9% in the next two years.
The first of the turboprop 72-600 series planes will arrive in October next year, followed by a second in December, two in 2013 and another each year for the following three years.
Another five planes will be available between 2014 and 2016.
Air New Zealand chief executive Rob Fyfe says the planes will be in addition to the 11 aircraft it flies on regional routes.
No plans to drop Dreamliner orders
Air New Zealand and Qantas say they have no plans to change their orders for Boeing's 787 Dreamliner planes despite growing concerns by some carriers about delivery delays.
China Eastern Airlines has terminated an order for 24 of the 787 aircraft.
Qantas says the aircraft is vital to its long-term fleet renewal and commercial strategy.
Air New Zealand told shareholders at its recent annual meeting that it was committed to its original order for the aircraft but was seeking further compensation for delays.
