Virgin Blue claims a contract between its majority owner Toll Holdings and New Zealand's Airwork to transport Australian air cargo on domestic routes is not a sign of trouble between Virgin Blue and its owner.
Local reports said that Airwork, which has extensive freight and charter operations in New Zealand, beat Virgin Blue for the contract, signalling a rift between Virgin and Toll. But Virgin explains that Airwork's contract follows Virgin's decision, in which Toll concurred, not to spread itself too thinly by further diversifying its fleet as it introduces Embraer regional jets and prepares to add Boeing 777s for next year's transpacific flights.
Virgin claims it will still carry more domestic cargo for Toll in the bellies of its 737s than Airwork will in its three dedicated 737 freighters.
Source: Airline Business
