Qantas to expand New Zealand domestic services

Qantas Ltd , Australia's largest airline, said it would expand its operations in New Zealand and offer new business services, as competition for air travel on domestic routes intensifies.

Qantas said it would re-start a Wellington-to-Christchurch service, add another Boeing 737 to its New Zealand domestic fleet and invest at least NZ$3 million in passenger facilities.

Regional manager New Zealand Grant Lilly said Qantas' introduction of the Citiflyer brand was part of a strategy to target the business traveller.

"The changes reinforce Qantas' commitment to the New Zealand market," Lilly said in a statement.

Pacific Blue, a subsidiary of Australia's Virgin Blue Holdings Ltd , said in August it would begin flying New Zealand's main domestic routes from November, and offered a range of cut-price fares.

National carrier Air New Zealand Ltd responded by cutting its fares and reconfiguring its domestic services. Both Qantas and Pacific Blue will fly between New Zealand's three largest cities, Auckland, Wellington and Christchurch. Qantas had scrapped its Wellington-Christchurch service earlier this year.

Reuters