As the aeroplane climbed into the air, red balloons were thrown around the cabin and applause broke out.
The party atmosphere had begun at check-in with entertainment from The Chicago Jazzmen and staff handing out red T-shirts emblazoned with the text: "Pacific Blue: Your newest Kiwi icon".
"This is not a normal domestic flight," Pacific Blue's publicity and media relations manager Amanda Bolger announced shortly after takeoff.
"This is the start of us bringing fair airfares to New Zealand."
A member of the Virgin Blue stable, Pacific Blue has been operating international flights from New Zealand for several years but this is its first foray into the lucrative domestic market.
As the champagne flowed aboard the short flight to the capital, an auction was held, raising $650 for Variety.
The airline's commercial manager Andrew David paid tribute to his staff who were given little warning of the plan to launch a domestic service.
The announcement of new routes and $39 one-way fares was made on August 22, and the fact the inaugural flights from Auckland and Christchurch took off this morning was due, in no small part, to the commitment of his team, Mr David said.
Upon arrival in Wellington, passengers were greeted with music from The Swing Gigolos and home-grown band Evermore, a waiata from a kapa haka group and stilt walkers.
Minister of Health David Cunliffe, attending on behalf on the prime minister, joined the flight from Auckland and told nzherald.co.nz he had enjoyed the spirit of the crew during the flight.
"The idea is to get more competition in the market and deliver a better deal for the consumer. Hopefully that will lead to lower prices in the domestic travel market too," he said.
Passengers spoken to by nzherald.co.nz echoed Mr Cunliffe's comments, saying they enjoyed the "party" atmosphere and the comfortable seats.
Virgin Blue's CEO Brett Godfrey was on hand to welcome passengers on both flights to Wellington and said he was delighted to finally launch a domestic service in New Zealand.
"We are not trying to undermine anybody. We genuinely believe that New Zealanders have been paying far too much for domestic air travel for far too long," he said.
Mr Godfrey said Pacific Blue would concentrate on the main trunk routes initially but did not rule out a move into regional routes in the future.
"I think the fares in regional New Zealand are horrendous and we plan to address them as well."
