Virgin Blue New Zealand

Virgin Blue plans to introduce domestic services in New Zealand by the end of 2004. Tony Marks, head of Pacific Blue, the NZ-based offshoot of Virgin Blue, said the addition of two more 737s later this year will enable the carrier to make its entry onto local routes in competition with Qantas and Air New Zealand. “It’s high on the priority list,” Marks said. “Our start date domestically is solely dictated by aircraft.” Pacific Blue currently operates two 737s on transtasman sectors out of Christchurch and Wellington. Another key factor in the airline’s domestic launch is its ability to negotiate terminal space and gates at Auckland. Competition recently intensified on NZ routes, with both Qantas and ANZ, which operates a one-class domestic service, discounting fares. Meanwhile, Pacific Blue has been involved in discussions about expanding its Australia-NZ services with a number of airports, including Dunedin, Hamilton and Invercargill.