Qantas may unload Air Pacific to compete with Virgin

Qantas is considering selling its 46.3% in Air Pacific, Fiji's national carrier, in order to compete with Virgin Group on routes to the tropical tourist destination. QF applied to Australia's International Air Services Commission, the route regulator, for capacity to Fiji on behalf of its Jetstar Airways subsidiary, but it would need to sell off its stake in Air Pacific. An airline spokesperson confirmed that the Air Pacific stake was under review and it is understood that the Fijian government is amenable to the sale. Qantas apparently has disappointed its partners by vetoing decisions that Fijians say would have helped the airline.

QF wants to launch Jetstar on the route next year, starting with Sydney-Fiji in April. Pacific Blue, Virgin's international arm in the region, started flying to Fiji from Brisbane in 2004 and since has started services from Sydney, Melbourne and Adelaide. Virgin has applied for an additional 1,260 seats for those routes and hopes to introduce its V Australia 777-300ERs. Qantas has applied for 1,500 seats per week and IASC has asked both airlines to justify the extra capacity. QF plans to codeshare with both Jetstar and Air Pacific.

Originally published 10 Sep 2009 at: http://feeds.atwonline.com/~r/AtwDailyNews/~3/ccsyGWr8mhY/story.html