Australian low-cost carrier Jetstar plans to expand its domestic New Zealand operations and base another two aircraft there, following a decision by Virgin Blue to exit the domestic New Zealand market.

Jetstar, a subsidiary of Qantas Airways, will increase flight frequencies on existing domestic routes and explore new destinations, says its group CEO Bruce Buchanan.

It will also base an additional two Airbus A320 aircraft in New Zealand, taking its fleet there to eight. The seventh aircraft will enter service in December, while the eighth will do so between end-2010 and early 2011.

Jetstar's announcement comes after Virgin Blue said this morning that its New Zealand-based subsidiary Pacific Blue will cease domestic operations and concentrate on its trans-Tasman, Southeast Asian and Pacific Islands operations.

Buchanan says the carrier will look at expanding routes from Auckland, Christchurch and Wellington, ahead of the 2011 Rubgy World Cup.

Its seventh A320 will be operated on domestic and trans-Tasman routes, including Melbourne-Queenstown, Gold Coast-Queenstown and Auckland-Cairns, says the airline.

Jetstar currently operates on five domestic routes in New Zealand and has a trans-Tasman network with 10 routes.

Source: Air Transport Intelligence news