Thurs "Dominion Post"
Virgin plans NZ subsidiary
31 July 2003
By ROELAND van den BERGH
Virgin Blue could start a stand-alone company for its proposed New Zealand operations and fly here under a different name, head of operations David Huttner says.
Virgin Blue plans to enter the New Zealand aviation market by the end of the year.
Setting up a New Zealand subsidiary would allow it to take advantage of cheaper operating costs, including civil aviation rules allowing one less cabin crew on Boeing 737 jets.
The New Zealand company would operate independently, but overall group strategy would still come out of Virgin Blue, Mr Huttner said.
Virgin Blue would be based in the main centres to fly early morning flights to Australia.
Qantas operates a similar lower-cost model with JetConnect, which employs New Zealanders for its domestic operation.
The planes carry the Qantas name and livery.
It will expand the model on to trans-Tasman routes from September, except for services to and from Auckland, which would continue under Qantas's own banner.
Mr Huttner said Virgin Blue would do what was required to remain competitive.
"We would not want to let them (JetConnect and Freedom Air) get the jump over us in any way."
The airline would probably not fly under the Virgin Blue brand across the Tasman or domestically in New Zealand because of rights over the Virgin name, he said.
Singapore Airlines, as 49 per cent owner of Virgin Atlantic, is understood to have refused Virgin Blue permission the right to use the Virgin brand outside of Australia.
British tycoon Sir Richard Branson owns the remainder of Virgin Atlantic and also half of Virgin Blue.
Mr Huttner said that while the name on the planes would be different, the product would be similar.
Potential names were being kept secret.
Virgin Blue was already in preliminary discussions with Wellington and Christchurch airports to set up a New Zealand base.
Auckland was not in the running at this stage because its airport lacked sufficient check-in counter space and aircraft gates.
However, if Virgin Blue's demand for unrestricted space was granted, Auckland would also be considered for the operations base, Mr Huttner said.
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Last edited by Wirraway; 31st Jul 2003 at 11:42.