Pacific Blue to exit Domestic NZ flight Operations

[straitman]

Unfortunately for the travelling public the aviation industry in this part of the world is too small to sustain too many players in the Aust and NZ domestic markets. We would be very unlucky to return to the monopoly situations that we have seen but it is possible that we could end up, particularly in NZ, with a duopoly that whilst it works for the airlines is still not the best for the travelling public.

 

[docjames]

Yes, it was in the flight global ANZ blog a few weeks ago, I will dig it up.

Edit : It was discussed here:

http://www.frequentflyer.com.au/community/virgin-blue-velocity/dj-widebodies-on-the-way-24459.html

I note you made comments

Yes, i do recall that thread, but my (and others) speculation is not a particualrly strong source. I thought you may have had something more recent/solid.

 

[gilby08]

Now will JQ get the rights to add on extra capacity now since DJ will be having less seats?

 

[nooj]

Annoyed if they change the SYD to LAX flight times, I have a trip booked in Jan next year, they have yet to update the website...

 

[samh004]

Unfortunately for the travelling public the aviation industry in this part of the world is too small to sustain too many players in the Aust and NZ domestic markets. We would be very unlucky to return to the monopoly situations that we have seen but it is possible that we could end up, particularly in NZ, with a duopoly that whilst it works for the airlines is still not the best for the travelling public.

I remember the fares I paid in ’06 were a lot cheaper than they are now… and they pretty much have the same carriers right now as they did then, so I don’t really understand the fare increases. So I guess it will get worse, but I don’t see any logical reason why.

 

[dk4]

The thing that will keep domestic prices down in N.Z. (at least in the short term) is the threat of TT entering the market. If the duopolists hike up the fares quickly/overnight, they would be creating great launch fodder for the Tiger.

 

[kamchatsky]

The thing that will keep domestic prices down in N.Z. (at least in the short term) is the threat of TT entering the market. If the duopolists hike up the fares quickly/overnight, they would be creating great launch fodder for the Tiger.

If there is anyone who can undercut NZ/JQ, it would be TT. Pacific Blue just could not compete with ULCCs.

 

[ANstar]

Whilst it is sad they have pulled out of domestic - lets not forget they only had 2 aircraft based there for domestic routes - hardly a massive operation.

 

[pauly7]

Whilst it is sad they have pulled out of domestic - lets not forget they only had 2 aircraft based there for domestic routes - hardly a massive operation.

Amazing how 2 aircraft could lose so much money then

 

[Justchecking]

I'm pretty sure its not cheap to fill up a 737 with fuel...

 

[NM]

I'm pretty sure its not cheap to fill up a 737 with fuel...

Perhaps they should sign up for Everyday Rewards and use the 4c/l fuel discount vouchers ... and earn some QFF points on the grocery shopping .

 

[markis10]

Perhaps they should sign up for Everyday Rewards and use the 4c/l fuel discount vouchers ... and earn some QFF points on the grocery shopping .

Or wait to jan next year and earn points on fuel purchases, but not in Tassie!

 

[NM]

Or wait to jan next year and earn points on fuel purchases, but not in Tassie!

or in NZ ... oh well :-|

 

[ric_melb]

It's interesting to reflect upon Virgin withdrawing from the NZ domestic market.
I had never thought about why they were there before.
Maybe to complement their Trans Tasman flights; possibly they thought they might expand.
But with hindsight you just wonder why they bothered. Only two jets used for domestic flights, and it seems many millions of losses.
Well the experiment is over for now, think its good Virgin have bitten the bullet.

 

[straitman]

Virgin Blue Unit Leaving New Zealand Market


Aug 16, 2010
By Bradley Perrett [email protected]
CANBERRA

Australia’s Virgin Blue group will direct its Pacific Blue offshoot toward international service, abandoning its domestic New Zealand business, in the first phase of a network review.

Another airline in the group, V Australia, will focus on long-haul, dropping its service to Fiji, which Pacific Blue will pick up.

 

[pauly7]

Another airline in the group, V Australia, will focus on long-haul, dropping its service to Fiji.

You can hear the cheers now ringing out from Air Pacific/Qantas - adding to those coming from Jetstar NZ!

Maybe they'll turn to tears though when the move 'upmarket' is finally revealed...