Virgin Blue interested in NZ domestic market

5.00 pm

Australian cut-price airline Virgin Blue has expressed an interest in setting up in New Zealand following the collapse of Qantas New Zealand.

Virgin has written a letter to the Prime Minister and the Transport Minister expressing its wish to open dialogue on the subject of operating in New Zealand.

Qantas New Zealand went into receivership on Saturday leaving Air New Zealand as the main operator in the domestic market.

Meanwhile, Australia's Qantas Airways has announced plans to operate eights flights a day on main domestic routes from Thursday.

The airline has yet to make a decision on its long-term plans in New Zealand.

Six 737 flights will be in operation tomorrow between Auckland and Christchurch and Auckland and Wellington, increasing to eight flights per day from Thursday.

Qantas is bringing in the flights after the collapse privately-owned Tasman Pacific Airlines on Saturday.

Tasman Pacific, which operated as Qantas New Zealand under a franchise agreement, went into receivership.

Qantas Airways had no financial stake in Qantas NZ but has promised to honour its tickets.

"As far as the domestic operations in New Zealand are concerned, we are still considering all our options," a Qantas spokesman told Reuters.

Under the air services treaty between New Zealand and Australia, Qantas Airways could start domestic operations in New Zealand almost immediately.

- REUTERS

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