The airline says its decision is due to an initiative to optimise its fleet and network.

The decision will also see Virgin Australia pull out of a number of other routes including Brisbane to, Bundaberg, Gladstone and Moranbah.

As a result, Alliance Airlines will commence operating on these same routes in a codeshare deal with Virgin.

Alliance Airlines’ chief executive officer Lee Schofield said the move into the former Virgin Australia routes was a logical, nature extension.

“It is an exciting opportunity,” he said. “These new routes builds on the existing relationship we have established with Virgin. I think it just makes sense.”

Mr Schofield said Alliance Airlines would continue with the same frequency of flights between Port Macquarie and Brisbane in the initial stages.

He said the airline – which was established 15 years ago as a charter business – would offer a jet service on the 80-seat Fokker 70.

“From day one we will have a daily schedule and then we will monitor the response from that,” he said.

Mr Schofield said fly in, fly out charter services had been the backbone of the business since it started.

“But weekly services for other operators has been a core of the business since 2012,” he said. “That’s why I say it is somewhat of a natural progression for us.”

Mr Schofield said bookings, frequent flyer points, access to lounges would be maintained through the Virgin network along with over the counter sales. Alliance Airlines flights will be coordinated to Virgin Australia flight schedules.

Existing ticket holders with Virgin would be reaccommodated on the Alliance Airlines services.

He said the Alliance Airlines team would visit Port Macquarie in the near future.

“First and foremost we are a regional business and one of our strengths is engaging with the community.

“We are certainly looking forward to being part of the Port Macquarie community.”

Port Macquarie-Hastings Council director Rebecca Olsen said council welcomes today’s announcement of the agreement between Virgin Australia and Alliance Airlines which will see the continuation of services on the Port Macquarie - Brisbane route. 

“The direct services between Port Macquarie and Brisbane provide great choice for both business and leisure travellers,” Ms Olsen said.

“Having direct flights into south east Queensland also offers the opportunity for onward connections to a wide range of domestic and international destinations.

“The Alliance Airlines jet aircraft fleet will result in quicker travel times and improved level of passenger comfort.”

Virgin Australia has operated the Port Macquarie to Brisbane route since October 2011 and council looks forward to continuing the strong relationship that has been built with the airline, the director said.

Virgin Australia has confirmed that it will continue to operate daily services between Port Macquarie and Sydney with its ATR aircraft”.