Virgin in wait for Government verdict

By DANIEL RIORDAN

Virgin Blue hopes its proposal to enter the New Zealand market and fly the Tasman will go before the cabinet next Monday.

However, Virgin's New Zealand manager, Mark Siladi, admits there is a strong possibility that with Air New Zealand's ownership also on the agenda, Virgin may be kept waiting a little longer.

"I suspect we're number two on the list not number one, and although our issue in a sense is just as important, I can understand if they don't make a decision then."

Mr Siladi said Government transportation officials from both sides of the Tasman met in Wellington last week to discuss a range of shared aviation issues, including Air New Zealand and Virgin Blue.

If Virgin got the nod from the Government, it would then need to go to the Civil Aviation Authority for licensing approvals, although Mr Siladi did not envisage any difficulty obtaining these.

He said Virgin had held talks with most of the country's big airports, and initial responses were positive, with keen interest in hosting the airline.

"We have a short list of what we'd like to do, but the relative density of flights into particular points still has to be decided."

In May, Auckland Airport warned the Government that it might be some time before it could ensure it had the facilities to accommodate any new entrant, including Virgin.

Mr Siladi said he had since spoken to airport officials and was confident of overcoming any obstacles.



One of Virgin's main challenges at Auckland would be the financial one of coping with separate terminals, requiring planes and staff to be moved between the domestic and international terminals.

Mr Siladi said if Government approval was granted in the next few weeks, Virgin could be flying here by November.

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