Qantas rebukes reports it won't expand NZ services

By NZPA

Wednesday 17th July 2002

Qantas today rebuked media reports it has shelved plans to expand its New Zealand domestic services.

The Dominion Post reported today that the Australian carrier no longer had any immediate plans to increase its existing fleet of four Boeing 737s flying on the main trunk routes.

"We have plans to expand our services in New Zealand, that hasn't changed," Qantas' public affairs head Michael Sharp told NZPA.

"Since we began operating in New Zealand last year in our own right we've increased from three 737s to four, we've expanded our relationship with Origin Pacific to cover the regional areas, and we do have further plans for domestic New Zealand services.

"It is certainly not correct to say that we have shelved plans," Mr Sharp added.

Mr Sharp said Qantas was currently advertising in New Zealand for more staff, both cabin crew and management positions, and would release more information on its expansion plans when they were finalised.

Qantas has applied for a New Zealand operating certificate to replace the temporary foreign certificate it has used since the collapse of its franchise holder Tasman Pacific early last year.

The new certificate, expected to be issued next month, will be under wholly-owned Qantas subsidiary Jetconnect, which will operate the New Zealand business.

Jetconnect is looking to hire seven senior managers and a number of cabin crew, Mr Sharp said.

Analysts say the move to a New Zealand operating certificate indicates that Qantas is now hedging its bets in the event that plans to buy into Air New Zealand fall through.

Mr Sharp said discussions are continuing between the two airlines over a possible Qantas shareholding in the national carrier.

"We are in discussions and there is nothing to add at this stage."

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