Qantas just bought 22.5% share of AirNZ for NZ$550 million (US$273 million) in late Nov 2002. AirNZ would not be in Star Alliance since 9 Dec 2002, and would join Australasian Alliance headed by Qantas (that is, AirNZ may join oneworld which Qantas joins), and there would be more codesharing between them.

This would make Qantas - AirNZ have near-monopoly in Australia - New Zealand doemstic air transport.

Because of this, Virgin Blue is discussing with New Zealand Government, which holds 82% share of AirNZ, so hope to stop the near-monopoly situation after the change.

Meanwhile Virgin Blue is planning to operate flights to South East Asian destinations, like Singapore, Malaysia, Indonesia, East Timor and Brunei. Its spokemen said New Zealand would be its first international destination.

Richard Branson, the head of Virgin group, said Virgin Atlantic would operate Hong Kong - Australia flights for connecting Virgin Blue flights.