Expect tougher competition in the Australian skies as two airline companies initiate changes in a bid to capture a larger cut of the country's travel market.

Virgin Australia will start in three weeks its ownership restructuring which would pave the way for foreign airlines and institutions to acquire a larger share in its domestic business.

Among those interested in acquiring a larger stake in Virgin's domestic business is James Hogan, chief executive of Etihad, who will meet airline executives at the Opera House, and Air New Zealand which acquired in 2011 a 20 per cent stake in Virgin.

Etihad had been buying airline shares the past year at Air Berlin and Air Seychelles, and is interested also in Aer Lingus, the flag carrier of Ireland.

A former executive of British Airways said the ownership change in Virgin Australia would be good for the company because by opening its register to forms of capital not currently available to the air carrier, it would give offshore investors options beyond Qantas.

Meanwhile, Tiger Airways announced the set up of a second hub in Sydney after the Australian Civil Aviation and Safety Authority (CASA) lifted restrictions on the budget carrier's flight numbers. With the opening of a second centre, Tiger will fly out of Sydney beginning July 2012 three Airbus A320 jets which would add 3,600 seats daily.

Tiger's first hub is in Melbourne. The company was grounded by CASA in July over air safety issues. The airline aims to have 10 aircraft operating in Australia by the second half of 2012. With the three new flights out of Sydney the company hopes to reverse the $6.5 million loss it registered in the December 2011 quarter.

The new hub will create up to 150 jobs in Sydney and hike Tiger's total employment to 500.

Another air carrier that has added a new service to Australia is Air New Zealand. It took over the route of Norfolk Air which closed on March 2. Air New Zealand will fly the Norfolk Island-Sydney twice a week and Norfolk Island-Brisbane also twice a week using A320 jets.

In another development, Auckland Airport welcomed the launch by Immigration New Zealand (INZ) of a new vision for 2015 which would improve immigration policy and processes. Auckland Airport General Manager for Corporate Affairs Charles Spillane said INZ has become a model for progressive, smart immigration service which would help find balance between protecting New Zealand's integrity and promoting better social and economic outcomes by making it easier for best qualified migrants and highest-value visitors to enter the country.

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