As many as four new-entrant airlines hope to launch domestic flights in New Zealand once they have a clearer idea of where aviation policy is headed.
Jump Airlines, one of these proposed carriers, shelved start-up plans in November after the news about the proposed Qantas and Air New Zealand (ANZ) equity alliance and joint operating scheme. Now, Jump and the three other potential start-ups are trying to discern which scenario might work to their advantage.
Jump is majority-owned by European investors. According to organiser Steve Mosen, they are less sceptical than New Zealand venture capitalists because they have seen the success of low-cost carriers in Europe. Mosen was co-founder of Cityjet, a New Zealand budget airline that stopped flying in 1999.
Robin McCarthy, a Christchurch helicopter pilot and entrepreneur, is behind a second potential start-up named Zoom Airways. McCarthy has attempted to enlist Gary Toomey, former chief executive of ANZ and Ansett.
The third potential airline is Jumpjet Airlines (not to be confused with Jump Airlines), proposed by a Wellington-area businessman. The final entrant looks even more like a long shot. It is still lacking a name, according to its founder, a former ANZ baggage handler.
Both Jumpjet and the unnamed airline emerged in response to the Qantas-ANZ proposal, apparently hoping it might create an opening for them. Jump and Zoom were unveiled a year ago, but both have been waiting to see what happens with the Qantas-ANZ plan.
Their first hint should come in April when the Commerce Commission releases its draft decision on the Qantas-ANZ request. That decision could start to answer some of the questions about which airlines are likely to ply New Zealand's skies.
When Jump Airlines first announced flight plans a year ago, Air New Zealand's discount unit, Freedom Air, was flying more domestic routes. Freedom has since switched almost entirely to leisure routes to Australia. In its place domestically, Air New Zealand has introduced its own Express Class with lower fares and scaled-down service.
But these changes could only mark the beginning. If the Commerce Commission and its Australian counterpart approve the Qantas-ANZ deal, some analysts predict Qantas will pull out of New Zealand in favour of ANZ. Then the question is whether Australia's Virgin Blue would enter this market, as it could under the liberal New Zealand-Australia aviation accord. Virgin has sent mixed signals on this question.
DAVID KNIBB SEATTLE
Source: Airline Business
