Virgin Blue Holdings will commence flights from Sydney to Uluru in August, challenging Qantas Airways which currently has the route all to itself.
The daily service to the central Australian tourist destination would provide "some much needed competition on the route", Brisbane-based Virgin Blue said on Monday.
Currently, only Qantas Airways flies to Uluru, in the Northern Territory, from Sydney. Its subsidiary QantasLink has services from Alice Springs, Cairns and Perth.
Outgoing Virgin Blue chief executive Brett Godfrey said the airline explored a number of options before deciding on Uluru as the ideal destination for a new route.
"We are excited to be expanding our route network to include Ayers Rock," Mr Godfrey said.
"We expect to find the only airline currently operating on the route will see fit to suddenly offer more reasonable fares."
Virgin Blue will start flying Embraer E-190 jet aircraft, which can carry up to 104 passengers in two classes, on August 2.
The company was due to take delivery of a new Embraer jet later in 2010.
GPT Group anticipated the new service would be good for its Ayers Rock Resort.
"An additional airline carrier to the resort will assist in stimulating growth in demand for the region, enabling even more travellers to visit and improving occupancy," GPT chief executive Michael Cameron said.
Mr Cameron said the Ayers Rock Resort, which was the final asset to be sold from GPT's former hotel and tourism portfolio, remained a non-core asset.
"Ayers Rock Resort remains a good performing quality asset that GPT will continue to hold until dilution from its sale is minimised," Mr Cameron said.
Ayers Rock will be Virgin Blue's 30th domestic destination.
Special introductory fares start from $149 one-way, with normal fares $199 one-way.
Ayers Rock Airport would upgrade existing check-in counters and build additional baggage belts ahead of the first flight, Virgin Blue said.
AAP
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