Virgin puts NZ plans on ice

Budget airline Virgin Blue will not be coming to New Zealand this year.

The Air New Zealand-Ansett Australia debacle has focused Virgin Blue on its position in the Australian market, where Ansett's ranking as the No 2 player to Qantas has been undermined.

Virgin Blue spokesman David Huttner said the airline would not be flying to New Zealand or on regional routes this year.

"We still want to fly in New Zealand but it won't be in the immediate future," he said.

Mr Huttner said he hoped it could be next year, but that would be the earliest.

Virgin had not gone cold on the idea, he said, despite its New Zealand-based representative, Mark Siladi, resigning to work for an internet company in Hong Kong.

Virgin Blue had hoped to begin flying to New Zealand in November but also wants to fly transtasman. For that, it needs approval from the Australian and New Zealand governments.

Transport Minister Mark Gosche said Virgin Blue's proposal to fly here was still being worked on. Virgin Blue had been planning a small start-up operation.

Virgin showed interest in New Zealand after Qantas NZ collapsed in April, owing more than $100 million.

- NZPA

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