Australian-based airline to start New Zealand domestic services
indiatimes.com
Australian-based airline Pacific Blue said on Thursday it would start domestic services in New Zealand from November, claiming the market is ripe for new competition.
Pacific Blue, a subsidiary of Australian domestic airline Virgin Blue, will compete against Air New Zealand and Qantas, with the latter operating only on routes between the major cities and tourist centres.
"We are confident the circumstances are now right and there is room for competition and an obvious need for market stimulation," Virgin Blue chief executive Brett Godfrey told a press conference.
Pacific Blue will add two Boeing 737-800 aircraft to its fleet operating international and domestic New Zealand routes. From November 15, Virgin Blue will operate five return flights between the largest city Auckland and the capital Wellington.
The airline will also make two daily return flights between Auckland and the major South Island city Christchurch and three between Wellington and Christchurch. The airline announced steeply discounted introductory fares and admitted it could run at a loss for the first couple of years.
"I think our loss will be the travelling public's gain," Godfrey said. Air New Zealand dominates domestic routes with Qantas scaling back its services this year and Origin Pacific, which served regional centres, going out of business last year.
News that Pacific Blue would be announcing their entry into the domestic market wiped 14 percent off the value of Air New Zealand shares this week.
