Jetstar/Air New Zealand in price war over Dunedin route

Jetstar's entry into the Auckland-Dunedin sector has reportedly sparked a price war between the LCC and incumbent Air New Zealand (Otago Daily Times, 13-May-2011). Jetstar was offering one-way fares for as low as NZD5, which was undercut by Air New Zealand, which offered NZD1 one-way fares from Dunedin to Auckland, Wellington and Christchurch. Air New Zealand offered only 600 tickets at the low prices and Jetstar's NZD5 fares were on offer for just one hour.