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JETGO will scale back its flights between Port Macquarie and Melbourne over the winter months.
The airline will pull the Wednesday flights over the cooler months in response to softer than expected mid-week demand.
But it is expected to be a temporary measure.
JETGO managing director airlines Paul Bredereck said the demand seemed to be at the beginning and end of the week.
He said the airline adjusted the capacity anywhere on its network to meet the demand.
“We don’t have a lot of history at Port Macquarie so it’s going to be reasonably reactive,” Mr Bredereck said.
The airline will operate services on three days each week between Port Macquarie and Melbourne over winter.
“We expect the demand will increase for summer,” he said.
JETGO expects to return the service to four days when demand picks up.
The jet aircraft service launched in November with flights between Port Macquarie and Melbourne on four days each week.
Passengers had long awaited a direct air link with Melbourne.
JETGO connects Port Macquarie with Melbourne's Essendon airport.
Mr Bredereck said the service would take time to develop.
“We will simply match the capacity and frequency in line with demand,” he said.
“One of the difficulties we have is that the mix of the market in Port Macquarie is very price sensitive.”
He said the airline had some loyal and regular customers who appreciated the service.
JETGO has noticed some people are prepared to drive to Newcastle or Coffs Harbour to catch Tigerair or Jetstar flights to Melbourne.
“We simply can’t compete with the low-cost airlines,” Mr Bredereck said.
“That dilutes the demand for the direct service.”
Mr Bredereck said passenger feedback had been mostly positive.
“We are just happy to be servicing the place and servicing the community,” he said.
Mr Bredereck said JETGO offers a direct jet service between Port Macquarie and Melbourne which has not been available before.
He said on time performance had improved dramatically in the first quarter of the 2017, compared to the last quarter of 2016.
JETGO has added two more aircraft and 16 additional pilots.