For the first time, Virgin Blue has said it might enter New Zealand even if competition authorities allow the alliance by Air New Zealand (ANZ) and Qantas Airways.
The Australian discount carrier has other offshore plans, but has been coy about New Zealand for fear that regulators might see its presence as offsetting some of the anti-competitive effect of an ANZ-Qantas alliance.
The key to its New Zealand entry, Virgin Blue now reveals, is the closure or sale of ANZ's discount subsidiary, Freedom Air. Freedom has plied New Zealand routes since 1966, but now operates discount flights to Australia.
Brett Godfrey, Virgin Blue's chief executive, says: "If Freedom Air is taken out of the equation, we feel very comfortable about going into the [New Zealand] market." The airline says if it bought Freedom it would protect its staff and key routes. Virgin Blue also seeks a two -year freeze on ANZ launching another version of Freedom.
Source: Airline Business
