Budget airline Jetstar has launched a $7 fare sale to promote interest to its latest flight destination from Wellington to Queenstown in New Zealand.

Queenstown is a major conference and meeting destination in New Zealand. It is also known for the Central Otago wine region, which is gaining international importance and recognition within the wine industry.

The Wellington City Council is also excited over the development as it will surely boost its tourism sector.

Beginning December 22, Jetstar will fly daily between the capital and the resort town with fares starting at $79.

Jetstar says its Sydney-Queenstown fares are at least 30 percent cheaper than competitors' existing fares on the route.

The airline plans to schedule flights for Monday and Friday mornings. Flight JQ223 will leave Sydney at 0950, arriving in Queenstown at 1445. Return flight JQ224 leaves Queenstown at 0950 and gets into Sydney at 1100.

Three other airlines, Qantas, Air New Zealand and Virgin Australia's Pacific Blue subsidiary, likewise fly the Sydney-Queenstown. Qantas has four flights weekly, Air New Zealand has three Pacific Blue has one.

Jetstar will also increase its Melbourne-Queenstown flights, up from two to three flights each week. Within New Zealand, Jetstar will also introduce a daily flight between Queenstown and capital city Wellington from 22 December.

Aside from increased number of flights, the competition from Jetstar is expected to lower prices and push the full-service air carriers to improve their services so as not to lose their clientele over the cheaper fares of Jetstar.