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Will Kiwi Regional Airlines succeed? Risks are high.

Between 1994 and 1996, a small New Zealand airline Kiwi Travel International Airlines established by Ewan Wilson turned Australian-New Zealand air travel on its head. Initially operating from secondary NZ airports Hamilton and Dunedin, the carrier expanded to Christchurch.  Offering a “Cola and Peanuts”  fare, they introduced fares that significantly undercut Air New Zealand and Qantas, the established trans-Tasman carriers. Air New Zealand countered by establishing its own low cost subsidiary Freedom Air in December, 1995 which also operated from secondary airports. Fares plunged so low that passengers were picking up flights for $US120 round trip for the 2200 km (1378 mile) international…

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