Wellington, June 10 NZPA - The scrap for travellers' dollars intensified today with Australian airline Jetstar briefly offering free airfares and rival Pacific Blue announcing new trans-Tasman services from September.

National carrier Air New Zealand declined to comment on the intensifying competition, which was welcomed by airports and local business groups.

Jetstar, the budget carrier owned by Qantas, today offered 2000 free seats on New Zealand routes to mark the start of its domestic services in this country.

It started flying between Auckland, Christchurch, Wellington and Queenstown from today, replacing Qantas flights.

Radio New Zealand reported that several Jetstar flights ran up to an hour late.

The "$0" one way seats were available today only until 11am for selected flights between February 10 and March 17 next year.

Some potential customers reported missing out of the deal because the Jetstar system overloaded. The price allowed carry on luggage only and there was a $4 booking fee for credit cards. There was a $10 charge if a bag needed to be checked in.

Air NZ today offered flights between Queenstown and Auckland for $15 one way and flights between Wellington and Christchurch for $11 one way on its grabaseat promotion.

The NZ Air Line Pilots' Association said the travellers should remember the old adage "you get what you pay for".

"The low-cost business model might be acceptable in a discount department store selling cheap imported goods but we don't feel it's appropriate in a safety sensitive industry like aviation," said associations executive director Rick Mirkin.

Also today, Pacific Blue, the Christchurch-based subsidiary of Australian-based Virgin Blue, said it was introducing two flights a week between Queenstown and Sydney, three flights between Dunedin and Brisbane, and three flights between Wellington and Sydney to its timetable.

Last week it announced it would also be flying from Hamilton to Australia from September -- three flights a week to Sydney and three to Brisbane.

The Wellington Chamber of Commerce today welcomed the arrival of Jetstar's domestic flights in and out of Wellington and the new services announced by Pacific Blue.

"The new flights will stimulate demand," said chamber chief executive Charles Finny. "They provide an opportunity to increase the numbers of visitors to Wellington, providing a boost to the region's economy," he said.

Competition on air routes was ultimately in the best interest of airlines, he said.

Wellington Airport chief executive Steven Fitzgerald also welcomed the arrival of the 177 seat Airbus A320 operated by Jetstar.

"Jetstar's vibrant brand and growth-orientated strategy is a very positive signal for the future.

"We look forward to the possibility of Jetstar operating beyond the main trunk to other parts of the country as well as trans-Tasman flights to and from Wellington," he said.

Jetstar operates trans-Tasman services out of Christchurch and Auckland.