Jetstar boosts NZ after Virgin departure

Low-cost carrier Jetstar plans to increase its fledgling New Zealand operations, taking advantage of Virgin Blue's departure from the market.

The airline, owned by Qantas, says it will add two extra A320 aircraft to its eight strong NZ fleet to support more domestic and transtasman routes.

This includes the launch of Melbourne to Queenstown, Gold Coast to Queenstown and Auckland to Cairns services.

Jetstar chief Bruce Buchanan said the airline would increase flights from Auckland, Christchurch and Wellington before the 2011 Rugby World Cup.

"We plan to further grow our existing domestic NZ routes and will investigate new destinations in line with our strong and expanding market presence since commencing domestic flying in June 2009," he said.

The Virgin Blue airlines group said it was pulling out of an underperforming New Zealand domestic market, to strengthen its transtasman, Pacific and Asian networks.

Jetstar is the second airline to benefit from the move, after Air New Zealand said it would pick up thousands of Virgin Blue's disrupted passengers.

"We have confirmed that we're able to re-accommodate their customers and understand Pacific Blue will soon contact passengers to discuss their options," Air New Zealand Group General Manager Australasia Bruce Parton said in a statement.

He said passengers would be rebooked onto Air New Zealand services as close to their currently booked departure time as possible.

In addition, Pacific Blue passengers would be offered free membership to Air New Zealand's Airpoints programme.

Virgin said following the first phase of a network review, its Pacific Blue operation would expand as a medium-haul international airline, while its long-haul V Australia aircraft would be available to strengthen the US route.

"By year-end, V Australia will be fully devoted to international long haul business more suited to the B777 fleet, with Fiji serviced by Pacific Blue," Virgin Blue chief executive John Borghetti said in a statement.