Pacific Blue has unveiled phase two of its New Zealand expansion, with daily flights between Wellington and Sydney from March.
The international wing of the low-cost carrier Virgin Blue will start flying between the cities on March 10, its first move outside Christchurch.
The Wellington operation will bea firm challenge to Air NZ and Qantas, the only airlines flying from that city to Australia.
A $99 introductory one-way fare (that does not include taxes and some charges) has been announced, which can be bought between now and Christmas, for travel between March 10 and November 30. Air NZ's lowest fares on this route are $189, with similar additions for taxes. Qantas fares between the cities start at $219.
Pacific Blue chief executive Tony Marks said the arrival of new aircraft was part of the reason the airline was slowly making announcements of its new services.
As to when Pacific Blue might start flying to and from New Zealand's busiest airport - Auckland - he said that if he could answer he would not because of confidentiality.
Once the Pacific Blue $99 fare sale was over, midweek low-cost fares of $149 would be available, with fully flexible fares costing $399.
The airline has warned, however, that its $99 fares may not be available on all flights or on peak days.
Pacific Blue also announced a daily Christchurch-to-Sydney service from March 10 with a similar $99 introductory fare.
* Air NZ yesterday said it had eased the strict "use it or lose it" provisions imposed on its cheapest "smart saver" fares. Domestic passengers can now change their fares for a fee of $50, while those on international flights must pay $100. Changes will not be allowed within 24 hours of travel.
