Hopes for new discount airline

Air New Zealand-Ansett is considering launching its new low-fare New Zealand domestic airline in Australia to take on Qantas's new combined regional and holiday operator QantasLink which includes the absorbed Impulse Airlines.

Ansett says it will soon make a decision on how it will combat a strengthened Qantas and it appears a new chapter of discount airfares could be in store, despite Impulse's failure to establish itself as an independent domestic carrier.

Ansett has ruled out a partnership with the other low-fare airline, Virgin Blue.

Australian Financial Review, 23/05/01, p1.