Jump takes step backward

Jump Airlines has put plans for a budget domestic jet service on hold, at least until the industry settles down.

Jump had planned to start flying two Boeing 737-800s on the main trunk route and to Palmerston North from April next year.

But spokesman Steve Mosen said the "rather complex" domestic aviation scene meant that the start date was unlikely to be met.

Jump is the second airline to defer its plans. Australian budget carrier Virgin Blue is delaying a proposed transtasman operation until nego-tiations for Qantas to buy a stake in Air New Zealand are resolved.

Mosen said Jump would also take a wait-and-see approach to those negotiations.

"We are finding that the appetite for investment and losses in the business continues to be poor. Consequently, although considerable backing and support exists, the group is finding it difficult to secure an adequate total investment level ... which would sustain the start-up phase of the business plan."

Jump was backed by French import and export company Pericom Group, which had agreed to take a 15 per cent stake.

- NZPA