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NZ Pacific Blue, Virgin To Offer Joint Regional Air Fares -By
Christopher Niesche, Dow Jones Newswires

Thursday January 15, 10:58 pm ET WELLINGTON (Dow Jones)--Virgin Blue
Ltd.(VBL.NZ), the discount Australian airline, said Friday that it
will offer flight connections with its wholly-owned unit Pacific Blue.

Passengers can now get "through fares" between Australia and New
Zealand on the two airlines, Virgin Blue said in a statement.

"Baggage will be automatically transferred so travelers don't have to
go to the trouble of collecting their bags halfway and re-presenting
themselves for check-in a second time," the airline said.

For instance, passengers traveling from Adelaide to Christchurch can
be sold a "through fare", with the connecting or transit port being
Melbourne, Virgin Blue said. ####

Fullmoon

Indeed Virgin Blue and Pacific Blue have taken an extremely positive
step.

Official press articles from the Townsville Bulletin and Pacific Blue
websites:

http://townsvillebulletin.news.com.a...E14787,00.html

http://www.pacificblue.com.au/news/jan2004.php#160104

Adelaide, Cairns, Hobart, Launceston and Perth will also benefit from
the advantageous through-fares.

From the final introduction date of the 28th of March, streamlined
low-fare international travel is possible from not just Townsville and
Cairns but major southern cities. Centres such as Brisbane and Sydney
have arguably been the only cities to benefit from cheaper airfares
across the Tasman, due to the proliferation of fifth freedom airlines
plying the city-pairs. Now other cities around Australia will have
access to more a more competitive fare environment, previously a long
time dominated by the carriers Qantas and Air NZ.

While the services operated from the new cities will not be 'actual'
international flights departing from an 'actual' international
airport, nevertheless the cheaper through-fares will serve to stir the
competition pot.

Arguably the flight connections and through fares can be seen as a
step by Virgin Blue and Pacific Blue to gauge international movements
through the cities, and seemingly debate the advantages of dedicated
international services from cities such as Melbourne, Cairns and
Townsville.

However while much has been said in relation to the benefits of added
local revenue (in the form of international tourist spending) to
cities such as Cairns and Townsville, definitely attention must be
paid to the international services being reciprocal to two
communities. Local community members of centres such as Townsville
must support (ie: BUY TICKETS) the new arrangements if they can be
expected to continue.

Townsville has a relatively poor history of international airline
service. For information of passenger loads check official Australian
Government publications on airport statistics, for instance from
DOTARS and the Australian Bureau of Statistics. Since 1981 Townsville
has been served intl'ly by Qantas (B747, 767-2/300s), Garuda (DC9,
AB3), Milne Bay Air (PNG) (DH8), Flight West (F28). Destinations have
been Singapore (QF- 80s/2001/02), Indonesia (GA- early 90s), Bahrain
(QF-80s), London (QF- early 80s), Honolulu and Los Angeles (QF- 80s),
Auckland (QF- 80s), Papua New Guinea by both Milne and Flight West in
the 90s. The longest serving flights were in the 1980s when Qantas
flew to the city until 1991. Service was resumed to Singapore in
October 2001 but discontinued less than six months later. The other
intl airline services have operated to Townsville for less than 24
months a carrier.

So, in essence it is very important that both local residents support
the Virgin and Pacific Blue moves as well as overseas residents.

No doubt cities and the populations should benefit from Pacific and
Virgin Blue achieving their low-fare carrier goals.

Best Wishes

Fullmoon171