Australia's Virgin Blue has won a tender to establish a joint venture company to take over the jet operations of Samoan national carrier Polynesian Airlines.

A Polynesian Airlines source confirms Virgin Blue has won the tender over rival bids from Air New Zealand and Qantas Airways.

He says the Samoan government is now negotiating with Virgin Blue to transform Polynesian Airlines' jet operations into a low-cost carrier to be operated by the new joint venture. Virgin Blue confirms it has won the tender, but declines to provide further details because detailed discussions with the government have not yet begun.

The government aims to launch the joint venture in mid-2005, with Virgin Blue holding as much as a 49% stake. Polynesian now operates one Boeing 737-800 to Australia, New Zealand and Hawaii.

Its turboprop operation will remain separate from the joint venture as a 100% government-owned entity.

Source: Flight International