Wirraway
18th Sep 2003, 15:58
Thurs "The Dominion Post" NZ
http://www.stuff.co.nz/inl/common/imageViewer/0,1445,121523,00.jpg
Ratepayers help land Virgin deal
18 September 2003
By SETH ROBSON
A trans-Tasman marketing campaign that will cost $1 million a year has helped clinch the deal that brings budget airline Pacific Blue to Christchurch.
Ratepayers throughout the region will help pay for the campaign.
The New Zealand branch of Australian cut-price carrier Virgin Blue announced its decision to base itself in Christchurch yesterday.
It will employ 200 staff, and is offering initial airfares as low as $99 one-way to Brisbane (plus tax and surcharge).
The airline considered basing itself in Auckland or Wellington, but was persuaded to come south after strong lobbying by Christchurch International Airport and Christchurch and Canterbury Marketing (CCM), and the promise of a joint marketing campaign.
CCM is jointly funded by Canterbury's local authorities. Chief executive Ian Bougen said the marketing campaign was an "important factor" in Pacific Blue's decision to base itself in Christchurch.
He said it was estimated the airline's presence would bring an extra 40,000 tourists (equal to the number of Australians who ski here each year) and $140 million a year to the region.
Another factor that brought Pacific Blue to Christchurch was the ability of the airport to run around the clock, unlike Wellington International Airport, for example, which had a noise curfew.
Heavy maintenance facilities at the airport and the fact that it is the gateway to the South Island were also factors.
Mr Bougen said details of how much each of the three parties would contribute to the marketing campaign were confidential. The campaign would run for a few years, and could involve print, billboard, and television advertising in New Zealand and Australian markets where Pacific Blue planned to fly. The advertising would feature the Pacific Blue brand.
Airport chief executive George Bellew said the incentives offered to the airline were based on market growth.
"They won't qualify if they just carve up the existing market. We see them as having an ability to grow the market," he said.
Check-in counters for the airline had been built at the international terminal, but could also be used for domestic routes.
Tarmac space had been made available for Pacific Blue jets, and offices allocated in airport buildings. Pacific Blue has leased Aviation House, near the airport, as its corporate office. A fleet of new 177-seat 737-800 jets will fly its trans-Tasman route.
Next year the airline hopes to expand its service to other Australian destinations, with Adelaide and Melbourne the preferred ports. It will also begin competing domestically.
Pacific Blue chief executive Brett Godfrey, who stepped off a Virgin Blue 737-700 jet at Christchurch yesterday, said his airline had been "coerced" to come to the region.
"The enthusiasm of the airport, the tourism authorities, and of other key officials in Christchurch has given us the same level of confidence that we have in Queensland (where Virgin's Australian operation is based)," Mr Godfrey said.
"So many people have told us how they thought it would be great for the people of the South Island to have an airline they could call their own."
Pacific Blue has already started selling tickets on its daily Christchurch to Brisbane route for travel after February 1.
An introductory price of $99 (plus taxes and surcharge) one way to Brisbane is available until September 28, for travel during February and March. After that, the fare will be $189 (plus taxes and surcharge).
A fully flexible fare on the same route will cost $349 (plus taxes and surcharge), almost half the price charged by Qantas and Air New Zealand, Pacific Blue claims.
The cheap fares would draw in a "huge untapped tourism market" to the South Island, Mr Godfrey said.
"I'll bet you see people coming across from Australia who have never been on a plane before."
Pacific Blue's Christchurch operation is expected to increase cargo capacity across the Tasman, although Mr Godfrey emphasised it was not the airline's core business.
Christchurch International Airport is a private company – 75 per cent is owned by the Christchurch City Council, through Christchurch City Holdings Ltd, and 25 per cent by the Government.
Christchurch and Canterbury Marketing is responsible for marketing the region, and is jointly funded by Canterbury's local authorities.
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http://www.stuff.co.nz/inl/common/imageViewer/0,1445,121523,00.jpg
Ratepayers help land Virgin deal
18 September 2003
By SETH ROBSON
A trans-Tasman marketing campaign that will cost $1 million a year has helped clinch the deal that brings budget airline Pacific Blue to Christchurch.
Ratepayers throughout the region will help pay for the campaign.
The New Zealand branch of Australian cut-price carrier Virgin Blue announced its decision to base itself in Christchurch yesterday.
It will employ 200 staff, and is offering initial airfares as low as $99 one-way to Brisbane (plus tax and surcharge).
The airline considered basing itself in Auckland or Wellington, but was persuaded to come south after strong lobbying by Christchurch International Airport and Christchurch and Canterbury Marketing (CCM), and the promise of a joint marketing campaign.
CCM is jointly funded by Canterbury's local authorities. Chief executive Ian Bougen said the marketing campaign was an "important factor" in Pacific Blue's decision to base itself in Christchurch.
He said it was estimated the airline's presence would bring an extra 40,000 tourists (equal to the number of Australians who ski here each year) and $140 million a year to the region.
Another factor that brought Pacific Blue to Christchurch was the ability of the airport to run around the clock, unlike Wellington International Airport, for example, which had a noise curfew.
Heavy maintenance facilities at the airport and the fact that it is the gateway to the South Island were also factors.
Mr Bougen said details of how much each of the three parties would contribute to the marketing campaign were confidential. The campaign would run for a few years, and could involve print, billboard, and television advertising in New Zealand and Australian markets where Pacific Blue planned to fly. The advertising would feature the Pacific Blue brand.
Airport chief executive George Bellew said the incentives offered to the airline were based on market growth.
"They won't qualify if they just carve up the existing market. We see them as having an ability to grow the market," he said.
Check-in counters for the airline had been built at the international terminal, but could also be used for domestic routes.
Tarmac space had been made available for Pacific Blue jets, and offices allocated in airport buildings. Pacific Blue has leased Aviation House, near the airport, as its corporate office. A fleet of new 177-seat 737-800 jets will fly its trans-Tasman route.
Next year the airline hopes to expand its service to other Australian destinations, with Adelaide and Melbourne the preferred ports. It will also begin competing domestically.
Pacific Blue chief executive Brett Godfrey, who stepped off a Virgin Blue 737-700 jet at Christchurch yesterday, said his airline had been "coerced" to come to the region.
"The enthusiasm of the airport, the tourism authorities, and of other key officials in Christchurch has given us the same level of confidence that we have in Queensland (where Virgin's Australian operation is based)," Mr Godfrey said.
"So many people have told us how they thought it would be great for the people of the South Island to have an airline they could call their own."
Pacific Blue has already started selling tickets on its daily Christchurch to Brisbane route for travel after February 1.
An introductory price of $99 (plus taxes and surcharge) one way to Brisbane is available until September 28, for travel during February and March. After that, the fare will be $189 (plus taxes and surcharge).
A fully flexible fare on the same route will cost $349 (plus taxes and surcharge), almost half the price charged by Qantas and Air New Zealand, Pacific Blue claims.
The cheap fares would draw in a "huge untapped tourism market" to the South Island, Mr Godfrey said.
"I'll bet you see people coming across from Australia who have never been on a plane before."
Pacific Blue's Christchurch operation is expected to increase cargo capacity across the Tasman, although Mr Godfrey emphasised it was not the airline's core business.
Christchurch International Airport is a private company – 75 per cent is owned by the Christchurch City Council, through Christchurch City Holdings Ltd, and 25 per cent by the Government.
Christchurch and Canterbury Marketing is responsible for marketing the region, and is jointly funded by Canterbury's local authorities.
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