Aussie discounters come into Qantas NZ equation

By DANIEL RIORDAN

Qantas NZ's future remains uncertain amid growing speculation that Australian discount airlines Impulse and Virgin Blue might be keen to form partnerships with the struggling Kiwi franchisee.

Virgin Blue chief executive Brett Godfrey was unavailable for comment yesterday but a spokeswoman said the company, launched by Sir Richard Branson last July, had held talks with several airlines.

Impulse has also been mentioned as a possible partner for Tasman Pacific, the airline owned by a consortium of businessmen which flies as Qantas NZ. Impulse had not returned calls by press time.

An airline analyst at a sharebroking firm, who asked not to be named, said a repositioning of alliances among Australasian airlines was likely as the discount operators sought to ensure their survival.

Linking with Tasman Pacific, if its partnership with Qantas ended, could be a key part of that strategy, although regulatory hurdles would have to be overcome if the discount operators tried to fly the Tasman.

The alternative would be for Tasman Pacific to fly the Tasman.

The options are dependent on the airline receiving more capital to keep it in the air - an issue being thrashed out around the negotiating table with Qantas.

Negotiations between Tasman Pacific and Qantas were reported to have broken down after Qantas baulked at being asked to take over its franchisee's debts. But Qantas and Tasman Pacific had no comment.