Air New Zealand's move to start direct flights between Rotorua and Sydney is particularly bad news for the Waikato.
Flights will begin in December, using a 152 seat A320 aircraft.
Ewan Wilson says Air New Zealand pulled out of Hamilton but now Pacific Blue is preparing fly from there, Air New Zealand's Rotorua flight will take away customers Pacific Blue was relying on.
Wilson says on the face of it there seems to be competition, but the question is whether there is a sufficient market to sustain both carriers.
If not he says, one airline will disappear, the consumer will be disadvantaged, fares will rise through lack of capacity and the move will be seen as anti-competitive.
He says it is a deliberate strategy by Air New Zealand, and it will have an impact on Pacific Blue.
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