KEY POINTS:
Pacific Blue's touchdown on domestic routes has sparked a new bout of transtasman sledging.
Air New Zealand is livid the newcomer was describing itself as "Pacific Blue: Your newest Kiwi Icon" on T-shirts handed out on its first Auckland-Wellington flight yesterday.
"Since when did Kiwis want to have an Australian company as a Kiwi icon. This is a group of Australians who have come over to our market," Air New Zealand's deputy chief executive Norm Thompson said.
Pacific Blue is owned by Australia's Virgin Blue, itself owned by Sir Richard Branson's Virgin Group and Toll Holdings, Australia's largest transport and logistics company. Air NZ is 76 per cent owned by taxpayers.
Mr Thompson said ground staff in Wellington had welcomed a Pacific Blue jet with a powhiri and challenged the first flight into Auckland with a haka.
"We've welcomed them in true Kiwi fashion and here they are sledging us in the market place."
Pacific Blue's commercial manager, Adrian Hamilton-Manns, said the airline appreciated the welcome.
"But if we're getting under Norm's skin perhaps he should look after his own business and we'll look after ours."
Pacific Blue flies the Auckland-Wellington to Christchurch main trunk with 10 daily return services. Mr Hamilton-Manns said the airline now employed 500 people and the company paid taxes in New Zealand.
When it was launched in August it put on sale more than 100,000 $39 fares, saving New Zealanders an estimated $4 million. The airline says millions more were saved when Air NZ and Qantas responded with budget fares.
To coincide with yesterday's launch Virgin Blue's co-founder Brett Godfrey also took a swipe at the incumbents.
"As a challenger brand we are always attracted to markets that are constrained by lacklustre competition and monopolistic or duopolistic suppliers. New Zealand is a prime example of this and we are pleased New Zealanders will have increased choice, more affordable fares and greater travel options."
Air NZ said it offered cut-rate deals years before Pacific Blue announced its decision to fly internally.
"We're being accused of having lacklustre competition - we've got lower air fares in New Zealand than what they have in Australia," Mr Thompson said.
