Paul Phelan/CAIRNS
Australasian carriers are regrouping following Impulse Airlines' withdrawal from all-jet operations on 22 May, and the shutdown of Qantas New Zealand a month earlier.
Air New Zealand and low-cost Australian carrier Virgin Blue have held preliminary talks on a possible tie-up, with the retention of the Virgin Blue brand as a pre-condition set by Virgin group boss Sir Richard Branson. He admits he may be forced to consider a partnership if the Australian Consumer Competition Commission does not take a tougher stance on the Qantas-Impulse link-up.
However, Air New Zealand chief executive Gary Toomey says: "At this stage, we have not chosen to take those discussions with Virgin any further." Instead, Toomey has raised the possibility of extending operations of its New Zealand-based low-cost carrier Freedom Air into Australia, to counter Virgin Blue's windfall gains. Toomey says the group was also considering the option of setting up a separate Australian low-cost carrier, and has held talks with the unions and the regulator.
"We wouldn't operate a low-cost carrier under any of the existing air operators' certificates [AOCs]," says Air New Zealand. "To set up Freedom as a domestic carrier in Australia may take us longer than doing a low-cost start-up."
Additionally, Ansett is boosting its capacity on the Melbourne-Sydney-Brisbane route network by adding four Boeing 767-300ERs and two 737-300s to its fleet. Toomey confirms that Air New Zealand had held internal discussions on the option of seeking 'transitional funding' from the New Zealand Government, but has not prepared an approach. He says the group now expects to have NZ$1 billion ($412 million) in cash by the end of June to fund new initiatives, resulting from the sale and leaseback of its 767 fleet.
Meanwhile, the Air New Zealand group is to retain just four of the eight ex-Ansett New ZealandBAe 146s which were operated by the failed Tasman Pacific Airways for Qantas New Zealand. The carrier has applied for a separate AOC to be held by its subsidiary Mount Cook Airlines, and hopes the new operation will be flying under the Air New Zealand Link brand within a month. Air New Zealand has already boosted services on domestic trunk routes, using its own capacity and Freedom Air737-300s.
Source: Flight International
