On 16 August 2010 the Virgin Blue group announced that Pacific Blue would be ceasing New Zealand domestic air services from 18 October 2010. Its B737-800 aircraft will be redeployed and would, among other things, be used to increase flight frequency on the BNE-HLZ, BNE-DUD and MEL-CHC trans-Tasman sectors.
Air New Zealand will be increasing its domestic frequency when it replaces its B737-300 aircraft with A320 aircraft from January 2011 (see previous post). A competitive response from Jetstar is also likely.
Although Pacific Blue boosted domestic air passenger numbers when it initially entered the New Zealand market on 12 November 2007, this boost did not last (see previous post).