New competition on trans-Tasman flights possible

Virgin Australia, the airline that up until April was in a partnership with Air New Zealand, says it's "possible" it'll bring its budget airline Tigerair to New Zealand.

At a conference in Sydney, Virgin Australia's Group Executive Rob Sharp also compared the end of the airline's partnership with Air New Zealand as a divorce. 

Air New Zealand announced last week it was entering into a codeshare agreement with Virgin Australia's rival and the country's largest airline, Qantas - but Mr Sharp says that agreement will have a negative impact on Kiwi travellers.

He said Virgin Australia has no immediate plans to launch domestic services in New Zealand, but revealed introducing its budget airline Tigerair onto routes across the Tasman is an option.

However it wouldn't happen immediately, Mr Sharp said.

Tigerair currently flies between most major Australian cities and offers flights from around $70.

The airline has 18 aircraft in its fleet, consisting of 14 Airbus A320s and four Boeing 737-800s, and was recently named the world's cheapest airline.

On-board service consists of in-flight entertainment, if you bring your own device, and 'Tigerbites' food that you can buy during the flight.

The airline was grounded for five weeks by the Civil Aviation Safety Authority of Australia in 2011, after a series of incidents that required investigation.

The airline featured in a fly on the wall reality series Air Ways that screened in New Zealand last year.