Air New Zealand is set to soon announce a new lower-cost, higher-value domestic product when it announces its fiscal-year results.

The indication came in a press release issued in response to Virgin Blue's announcement that it will launch New Zealand domestic services within 12 months.

ANZ Group GM-Shorthaul Airline Norm Thompson said: "Since Air New Zealand announced several months ago that it had a significant review of its domestic operations underway that were expected to yield the next evolution in the travel experience within New Zealand, we have heard murmurings of competitors bringing forward their launch plans."

He added that ANZ "remain[s] confident that the initiatives we will unveil ... will herald a new era for low-cost, efficient and comfortable domestic air travel."