Virgin Blue-owned Pacific Blue has launched a low-cost service within New Zealand, with plans for further domestic expansion.
While Virgin Blue in Australia this month launched a new campaign to move away from its budget image and reposition itself as a “new world carrier”, Pacific Blue has enlisted Lowe Rivet and media agency Spark Media to sell its low-cost credentials.
Pacific Blue general manager commercial, Adrian Hamilton-Manns, said when it first launched in New Zealand as a trans-Tasman carrier two years ago, and when it formed a partnership with Polynesian Airlines to launch Polynesian Blue, it established its “travel happy” positioning.
But for its new internal routes which began last week, he said, Pacific Blue needed to come up with a new positioning if it would compete with the likes of Air New Zealand and Qantas.
“When we came to look at domestic positioning we realized ‘travel happy’ wasn’t what we needed. It needed to be a more price driven entity, asking question ‘why pay more?’,” Hamilton-Manns said.
He added the response for the new service has so far been very positive, selling over 80,000 seats in the first few days of bookings.
“We’re offering the lowest fares in the market. While our competitors are now matching some of our leading fares we’re still offering the lowest fares in the market overall,” he said. “The uptake of the Velocity Frequent Flyer program was also strong. We added 2000 on the day we launched.”
Lowe Rivet’s managing director, Peter Brown said the primary reason for the launch of the domestic routes was to provide real competition for the New Zealand traveller, with the marketing campaign aimed at putting the “fun back into flying”.
“The campaign is meant to convey low cost both in look and message,” Brown said.
“But also to capture the Pacific Blue personality of being fun, lively and spirited – a challenger and underdog.”
Pacific Blue’s initial routes are Auckland, Wellington and Christchurch.
Hamilton-Manns said while the campaign is targeting consumers in those markets, it is also advertising in other regions where it eventually plans to launch.
“Over the next 12 months and beyond the aim is to grow the market, with the low fares stimulating people to travel and grow the pie and so that everybody wins,” Hamilton-Manns said.
“It will have an effect on everything – the tourism industry and business travellers.”
