Budget carrier Jetstar announced on Thursday that it would add 39 daily flights in the New Zealand domestic routes starting February next year, further boosting talks of impending service rivalry between the Qantas subsidiary and Air New Zealand.

The revelation was made following the withdrawal of Pacific Blue from New Zealand's domestic market by October this year and the recent disapproval of the proposed partnership by Virgin Blue Holdings Ltd and Air NZ on trans-Tasman routes by the Australian Competition and Consumer Commission (ACCC).

Jetstar said that two A320 aircrafts would start flying within New Zealand routes in the early part of 2011 and would be servicing routes between Auckland, Christchurch, Wellington and Queenstown.

The low-cost airline also started offering reduces fares on its website, with travellers accessing Jetstar.com being given the options of a one-way JetSaver Light ticket that starts from $NZ29 while Jetstar's daily flights within the country were carried by JetSaver Light fares that begin from $NZ49.

Jetstar's newly-appointed chief executive for Australia and New Zealand operations David Hall said that the planned expansion would lead to a total of 717,000 additional annual domestic seats for flights around the country.

Also, Jetstar Group chief executive Bruce Buchanan added that the airline is poised to deliver "almost 20 per cent of the flying in domestic New Zealand with this growth, and through these affordable and convenient new frequencies on key city pairs, will allow even more Kiwis to fly more often."