Potential Airline Price War To Australia
TVNZ
Potential Airline Price War To Australia
TVNZ
11/02/2005
NewstalkZB
Budget airline Virgin Blue's Pacific Blue is launching direct flights from Auckland to Australia, signalling a potential price war between carriers.
The first services will take off between Auckland and Brisbane, and Auckland to the Gold Coast, and will be as low as NZ$89 plus taxes.
They start on May 12.
Pacific Blue's CEO Tony Marks expects competitors to respond with fervour to the announcement, potentially creating a price war in the Auckland flight travel market.
He says when Pacific Blue entered the market in both Christchurch and Wellington it put pressure on competitors, and he expects the same in Auckland.
Mr Marks says fares came down and competitors made changes and now it is Auckland's turn to benefit.
He expects Pacific Blue's entry will improve fare prices from Auckland across the Tasman.
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