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Wirraway
14th Jun 2003, 02:46
Sat "Weekend Australian"

Virgin eyes NZ and S Pacific
By Steve Creedy, Aviation writer, and Michael West
June 14, 2003

VIRGIN Blue is tipped to begin flights to Fiji, and possibly New Zealand and Vanuatu, as it firms up plans to expand overseas.

Industry sources said last night the low-cost carrier wanted to take up twice-weekly slots in Fiji previously used by the defunct Ansett International.

They believed the airline's first overseas destinations, expected to be announced soon, would also include New Zealand and Vanuatu.

A Virgin Blue spokeswoman confirmed the three destinations were on the airline's short list, but could not say whether a decision had been made.

A move to cross the Tasman would boost arguments by Qantas and Air New Zealand for their proposed alliance, deemed anti-competitive by competition watchdogs.

A spokesman for Transport Minister John Anderson, who supports the Qantas alliance, said Virgin had talked to the Government about New Zealand and the South Pacific on an informal basis, but had not made a formal approach.

Expectation of a Virgin expansion has been boosted by rising optimism in the airline and tourism industries as the SARS crisis subsides.

Travellers are benefiting from a wave of cheap international fares as carriers restore suspended flights and seek to lure back passengers.

Qantas, which last weekend launched discounted air fare and accommodation packages to Singapore and Hong Kong, weighed in again last night with discounts of up to $500 on published international economy fares.

The fares, for travel until November 27, include Sydney-London $1876, London-Melbourne $1799, and Perth-Singapore for $697. Taxes and charges are included.

While not as spectacular as the 15,000 super-cheap Singapore Airlines fare and accommodation packages released worldwide this week, deals from Qantas and other airlines represent a significant saving on normal high-season fares.

Four thousand Australians have snapped up the Singapore packages, which offer stopover deals as low as $1114 to Europe and $362 to Singapore.

More cheap deals are on the way: Singapore Airlines releases another fare sale tomorrow, and Cathay Pacific will announce discount packages next week.

Singapore Airlines spokes man Stephen Forshaw said the fares for June and August were "substantially cheaper" than normal high season, including fares to London from $2038, Singapore from $807 and Johannesburg from $1627.

"There'll be deals around for a while I think," Mr Forshaw said. "There is not a doubt in the world that these discounts are generating renewed interest in overseas travel."

Harvey World Travel managing director Barry Mayo said fares to Europe were about 14 per cent cheaper than normal, but discounts had been as high as 40 per cent in recent weeks. Fares to the US were down about 12 per cent, and those to Japan about 35 per cent.

Mr Mayo said he believed the deals were helping to attract travellers and there appeared to be pent-up demand from people who had delayed travel in the first half of the year.

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