Pacific Blue looks at NZ domestic routes
Wed "Dominion Post"
Pacific Blue looks at domestic routes
14 January 2004
Budget airline Pacific Blue could be flying a New Zealand domestic service by the middle of this year, chief executive Tony Marks said.
The Virgin Blue offshoot's first Boeing 737-800 touched down at its Christchurch base yesterday, two weeks ahead of Pacific Blue's first scheduled trans-Tasman service.
The aircraft would undergo a rigorous inspection by the Civil Aviation Authority and a series of flights before its inaugural service between Christchurch and Brisbane on January 29, Mr Marks said.
A second aircraft was due to arrive later next month, in time for the start of the airline's services between Christchurch and Sydney and between Wellington and Sydney from March 10.
A decision still had to be made on how a third aircraft, due by the middle of the year, would be used, he said. Much would depend on how existing routes were performing and "whether this is the right time to contemplate going domestic".
A domestic service was likely to be based on the main trunk route of Auckland Wellington and Christchurch, and could lead to further airfare reductions.
"You have got to do Auckland-Wellington and Auckland-Christchurch. But there are one or two areas where the runways are capable of being served by a jet and are currently not being served by a jet," Mr Marks said.
Airports with significant international services would be favoured. However, centres like Hamilton, Dunedin and Rotorua could also be considered, he said.
Another option would be to fly a circular route combining domestic and trans-Tasman destinations in one day to maximise use of the aircraft.
An example could be a service from Hamilton to Wellington and on to Sydney, returning to Christchurch, then Wellington and back to Hamilton, Mr Marks said.
But there could be a sting in the tail for the regional airports vying for Pacific Blue's attention.
Pacific Blue could require smaller airports to underwrite those services by covering any losses, Centre for Asia Pacific Aviation Studies managing director Peter Harbison said from Sydney.
Dunedin appears to figure in Pacific Blue's plans, with the airport saying it had been approached by the airline.
The airport is spending $20 million to upgrade its terminal facilities in the next two years and is also considering lengthening its 1900-metre runway another 500 metres.
Nearly three years ago, British tycoon Sir Richard Branson named a direct Dunedin to Auckland jet service as an example of a route in which Virgin Blue could be interested.
Air New Zealand almost immediately introduced a similar service, a move industry observers considered a defensive ploy by the national carrier to discourage Virgin Blue's entry to the market.
Meanwhile, Pacific Blue is talking with Auckland International Airport over access to domestic terminal facilities.
Mr Harbison said Pacific Blue was unlikely to take on the Auckland to Sydney market, which was already hotly contested. He had been talking to Virgin Blue about launching a link between Auckland and Newcastle, the gateway to Australia's Hunter Valley.
Freedom Air abandoned its twice weekly service on the route in September 2002 after nine months, due to a lack of demand.
=========================================