01/08/09, 17:10:04 UTC

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Rumours of new domestic airline

stuff.co.nz

Speculation is bubbling that an airline such as Pacific Blue or Jetstar will shortly begin a domestic New Zealand service.

This comes despite talk being hosed down by the airlines.

Pacific Blue has been ordering aircraft that would be suitable on New Zealand provincial routes, and chatter is that it is busy training hostesses to staff new flight schedules.

The entry of another domestic airline could be well-timed, particularly as one of the existing airlines – JetConnect, which uses the Qantas brand in New Zealand – had been less aggressive of late, an industry source said. JetConnect had about 15 to 20 per cent of the domestic market and the rumours were it had recently been hamstrung in its fight against rival and dominant player Air New Zealand.

That lack of commitment related to a planned sale of parent Qantas Airways to a private equity group, which later failed to get enough acceptances for its bid.

Pacific Blue's purchase of 20 new Embraer aircraft – each with between 70 to 114 seats – would suit domestic or trans-Tasman passenger loads particularly between the smaller centres, he said.

Pacific Blue spokeswoman Amanda Bolger said the Embraer aircraft due for delivery between now and 2008-09 would certainly be used on Australian domestic routes.

Whether the Embraers would be used in New Zealand, or a potential New Zealand domestic service launched, was yet to be decided, she said.

"It has been something that we've said we'd never say never to, and it's certainly (worth) looking at. But as far as I'm aware there's nothing in the pipeline at the moment," Bolger said.

Pacific Blue recruited crew and trained them in Christchurch on a continuing basis, she said. Training numbers had not increased as far as she knew.

Jetstar chief executive Alan Joyce said while Jetstar had previously flagged a domestic New Zealand service, the low-cost carrier owned by Qantas was no closer to such a service. Australian domestic, international and trans-Tasman services based out of Christchurch remained a priority before New Zealand domestic operations, he said.

"We're still looking at it, but we have no plans to do anything in the near future ... we're a little bit away from looking at that scenario.

"(However) the one thing they have been saying here is that when (Pacific Blue) get their Embraers, the first 10 or so are going to be aimed at the regional markets in Australia, but we're of the belief the latter half of the Embraer arrivals may be destined for domestic New Zealand."

Joyce noted that Australian-based airlines were also focused on Tiger Air entering the Australian market.

Tiger is a Singapore Airlines-backed budget carrier that is expected to intensify competition in the air between Asia and Australia's main cities.

 Printable Version  | published Jul 02, 2007