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DJ To Revive Bid For NZ Route  
User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13738 posts, RR: 19
Posted (12 years 8 months 1 week 6 days 4 hours ago) and read 1762 times:

Virgin Blue to revive bid for NZ route
By Vladimir Guevarra

AUSTRALIAN discount carrier Virgin Blue yesterday said it would meet New Zealand authorities on Monday to revive its bid to fly across the Tasman Sea - a move which can heighten its 'friendly rivalry' with Singapore Airlines (SIA).

Mr David Huttner, Virgin Blue's commercial chief, told the Straits Times his team plans to have a 'courtesy call' with New Zealand Transport Minister Mark Gosche on Monday.

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'We're planning to have just a courtesy call with Minister Gosche, and see where we've left off,' he said in a telephone interview.

'We're just trying to review the various options on how to make Virgin Blue gain access to New Zealand.'

The renewed talks between Virgin Blue and the Kiwi government may increase the competitive atmosphere between Sir Richard Branson's no-frills airline and SIA.

Giving the green light for Virgin Blue to fly to New Zealand would mean a direct challenge to struggling Air New Zealand (Air NZ) - in which SIA has a 25 per cent stake.

Relations between Virgin Blue and SIA began to be strained in July when SIA chief executive Cheong Choong Kong said his company 'would not like it if Virgin Blue started operations in New Zealand'.

He had said he would 'be surprised' if Sir Richard's carrier began operations in New Zealand.

SIA has a 49 per cent stake in Sir Richard's Virgin Atlantic.

Virgin Blue, which now holds 20 per cent of the Australian market, is a separate company.

During a visit to Singapore last month, Sir Richard downplayed the tension, saying there is only a 'friendly rivalry' between Virgin Blue and SIA.

Yesterday, Mr Huttner said Virgin Blue 'has a chance of finally flying to New Zealand by next year'.

He refused to elaborate.

He also downplayed the tension with SIA and said: 'We're a different kind of airline so we don't see any competition. We don't mean to offend SIA, but we're just discussing things. Let's see how the talks turn out.'

When contacted yesterday, an SIA spokesman declined to comment.

SIA shares yesterday fell five cents to $9.80 while Air NZ's A and B shares both rose one NZ cent each to 37 NZ cents and 38 NZ cents respectively.



Anyone can fly, only the best Soar.
9 replies: All unread, jump to last
 
User currently offlineTG992 From New Zealand, joined Jan 2001, 2910 posts, RR: 10
Reply 1, posted (12 years 8 months 1 week 6 days 4 hours ago) and read 1749 times:

I really doubt DJ will make it over here, for 2 main reasons.

1/ The market just isn't big enough to have 3.5 airlines competing.. (NZ, QF, DJ, and QO)

2/ The NZ government probably won't be as open to the idea of DJ being here now because they've already pumped cash into Air NZ - letting another competitor in would sorta be like plugging one hole while drilling another.



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User currently offlineSkystar From Australia, joined Jan 2000, 1363 posts, RR: 3
Reply 2, posted (12 years 8 months 1 week 6 days 4 hours ago) and read 1744 times:

QO - is that Origin Pacific?
How about Freedom Air (SJ?) - I realise it's a NZ subsidiary.

That would make it closer to 4 to 4.5 airlines.

Cheers,

Justin


User currently offlineTG992 From New Zealand, joined Jan 2001, 2910 posts, RR: 10
Reply 3, posted (12 years 8 months 1 week 6 days 3 hours ago) and read 1737 times:

QO is indeed Origin.

Valid point - if you consider SJ as a seperate airline, and particularly take into account the fact it's squarely aiming at the same market as DJ.. it's even harder to see how they plan to make a profit.



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User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 4, posted (12 years 8 months 1 week 5 days 20 hours ago) and read 1719 times:

Agree with TG992, the only possible way that VB
could operate in NZ is if Sir Richard sells 51% or
more to Australian interests, then as an Aussie
airline could operate there with no problems as
well as fly the Tasman.

Wirraway


User currently offlineMx5_boy From , joined Dec 1969, posts, RR:
Reply 5, posted (12 years 8 months 1 week 5 days 20 hours ago) and read 1715 times:

Hey guys,

Just to be obnoxious, expect TT 'new' AN flights. Insiders of Fox / Lew suggest direct competition between NZ / AN. With AN at the controls... Ooooh.

Remember that SQ has the shits with NZ big time.

AN is within it's clear rights to fly TT and may I add the service that is proposed to be offered is outstanding, but of little cost to the airline.

***yay***

mb


User currently offlineAussie_ From Australia, joined Dec 2000, 1766 posts, RR: 5
Reply 6, posted (12 years 8 months 1 week 5 days 19 hours ago) and read 1708 times:

You have to be more specific mb... Because at the moment your comments make no sense to me.

Firstly AN and NZ are both Star partners. Therefore I doubt any predictions of a fight to the death over trans-tasman. Though I'd love to see it, I would think trans-tasman at this stage would be madness.

And what has this to do with SQ having the shits? Shits or not, SQ has 25% in NZ (still, I think) and therefore doesn't want to see NZ suffer.

And how can excellent service be of little cost to the airline? I suppose you mean the wizz-bang internet and phones in each seat etc. I can't see how this is going to come from anywhere but Fox/Lews hip pocket.

I love AN to death (and by god I lost some FF points with them) and what to see them back to full health, and with this in mind I beg them to be reasonable and forget TT for the time being, unless of course NZ nicely just hands over a few routes to them and ensures their pax traffic, but that seems unlikely.


User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 7, posted (12 years 8 months 1 week 5 days 19 hours ago) and read 1707 times:

Aussie

SIA only have about 4% of ANZ now.

Wirraway


User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13738 posts, RR: 19
Reply 8, posted (12 years 8 months 1 week 5 days 19 hours ago) and read 1700 times:

No, 4.3%  Big thumbs up


Anyone can fly, only the best Soar.
User currently offlineTG992 From New Zealand, joined Jan 2001, 2910 posts, RR: 10
Reply 9, posted (12 years 8 months 1 week 5 days 19 hours ago) and read 1697 times:

NZ and AN have already entered a commercial agreement complimenting (not competing) with each other.
Trans-Tasman traffic feeds to AN onwards to places like ADL. If AN wants to survive it needs to build alliances, not burn bridges. Grand ideas of taking on NZ, QF, TG, and UA directly on the Trans-Tasman routes are nothing but pipe dreams.



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