Australia’s Virgin Blue group will direct its Pacific Blue offshoot toward international service, abandoning its domestic New Zealand business, in the first phase of a network review. Another airline in the group, V Australia, will focus on long-haul, dropping its service to Fiji, which Pacific Blue will pick up. Jetstar, a budget airline operated by Virgin Blue rival Qantas, will take advantage of Virgin Blue’s retreat by increasing its New Zealand business, adding two Airbus A320s to the eight it already operates in the country.

The Airbus A350-900 will form the backbone of the mid-size, widebody fleet of Hong Kong’s Cathay Pacific Airways after deliveries under a planned order for 30 begin in 2016. Cathay, announcing a hefty rise in profits based on passenger revenues almost back at pre-crisis levels, says it will also order six Boeing 777-300ERs under purchase rights previously negotiated. The carrier values the intended orders at HK$75 billion ($9.7 billion), based on catalog prices.

All Nippon Airways will set up a budget subsidiary to face competition from Chinese and Southeast Asian carriers, the Nikkei newspaper reports. The budget carrier will probably be based at Osaka Kansai International Airport and will be established as early as next year, the paper says in a detailed report without citing sources. All Nippon, intending to be a major but not majority shareholder, will seek investment from foreign airlines of up to 30%, while inviting Japanese travel agencies and hotel operators also to take stakes.