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DJ737
27th Jan 2004, 14:46
Some trans-Tasman airlines may find the competition too tough over the next year but low air fares are here to stay, the head of Pacific Blue said.

Virgin Blue's international offshoot makes its inaugural flight from its base at Christchurch on New Zealand's South Island to Brisbane on Thursday.

The low-cost carrier has been offering one-way launch fares of $NZ99 ($A87) one-way (or $A149 for flights originating in Australia), with mid-week mini-fares normally starting from $US149 ($A194) one-way.

Pacific Blue chief executive Tony Marks said he believed a low-fare model would survive in the competitive trans-Tasman market.

"I think a low-fare regime is sustainable," Marks said.

"Obviously $NZ99 fares are unsustainable if you were to sell the whole aircraft for that kind of money."

Dominant players Air New Zealand and Qantas have already been offering cheaper air fares between Australia and New Zealand, in some cases half the price of a year ago.

Marks predicted a shake-up in the trans-Tasman market over the next year.

"I think a value-for-money service at the sort of levels that we're talking about is something that's there for some time to come," he said.

"No doubt there will be a shake-out of those who want to stay in the game and those who decide it's all too hard."

Marks said a number of trans-Tasman carriers had come and gone over the past decade.

"I don't know if it's going to be a price war so much as there'll be some jockeying for position.

"The principal players I suspect across the Tasman will largely stay the same - there will be Qantas in whatever form, Air New Zealand in whatever form and Virgin Blue in whatever form, if you like."

In March, Pacific Blue will add flights between Melbourne and Christchurch, and from Sydney to Christchurch and Wellington.

Pacific Blue is now deciding what to do with its third and any subsequent aircraft, with flights to Australia from Auckland, New Zealand domestic flights and services to the Pacific Islands all possibilities.


This story was found at: http://www.theage.com.au/articles/2004/01/27/1075088009026.html

DJ737

The Roo Rooter:E :ok:

EPIRB
28th Jan 2004, 03:22
Have they found enough pilots yet or are you blokes still going to be seconded?

Whiskery
28th Jan 2004, 04:39
"I think a low-fare regime is sustainable," Marks said.


It's as sustainable as the low crew wages.:(