Airline Pacific Blue is to introduce services between Auckland and Melbourne in September.
Company chief executive John Bartlett said that international expansion was a logical next step for the airline following its successful launch of domestic services within New Zealand.
Despite fuel increases and a slowing world economy the airline was confident that people would continue to travel, he said.
"Air travel is a part of people's lives but what they'll be looking for is value for money and not having to pay for things they don't want."
Seats for the new service will be available for sale from 1pm with a special launch one-way fare of $NZ179 ($A138.96) conditionally available until midnight Wednesday.
Pacific Blue said its low lead-in fare from Auckland to Melbourne was $NZ239 ($A185.54), with those seats limited and not necessarily available on all flights or during peak periods.