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Air NZ plans budget airline
Saturday, 04 May, 2007
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Air New Zealand is looking at starting a budget domestic airline to head off a growing threat from rivals.
On Wednesday, new company Kiwijet announced it planned to start flying domestic services in December using two Boeing 737-300 jets, though industry insiders gave it little chance of success.
In response, Air New Zealand general manager of strategy Nathan Agnew told staff that a new low cost airline was part of a wide-ranging strategic review to ensure Air New Zealand could respond quickly to a new competitor.
Air New Zealand has also launched a “security review” to establish whether confidential information had been leaked to Kiwijet, citing similarities between the two proposals.
A Report by The Mole from the Dominion Post
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