Wellington, Aug 3 NZPA - Trans-Tasman airline Jetstar has called on the Australian government to drop local immigration checks and passenger charges for New Zealand-bound traffic.

Airline chief executive Bruce Buchanan first raised the issue almost two years ago and today told The Australian newspaper that removing controls on one side of the Tasman would remove the duplication involved in performing customs, immigration and quarantine on both sides of the Tasman.

New Zealand Prime Minister John Key last year agreed with his then Australian counterpart Kevin Rudd to streamline travel between the countries.

A new Access Economics study commissioned by Jetstar has since estimated that dropping border controls between the two countries would see return fares fall an estimated $A76 (NZ$94.7), passenger numbers increase 13 percent and add $A280 million annually to Australia's GDP.

While the changes could be made on either side, airlines tended to fly to fewer points in New Zealand from a bigger number in Australia.

"It would make more economic sense to do it that way," Mr Buchanan said.

Jetstar has sent its Access Economics report to politicians and departmental executives in both countries.

It found that full border simplification would deliver a full yearly cost benefit of $A234m to airlines and a combined GDP benefit to Australia and New Zealand of $A365m annually.