Virgin Blue has had to redraw its trans-Tasman battle plans after Air New Zealand tore up an unsigned agreement to grant the budget airline terminal and slot space at Auckland International Airport. The agreement was effectively scuttled on Thursday when the New Zealand Commerce Commission rejected a proposed NZ$550 million ($477 million) alliance between Qantas and Air NZ. Virgin Blue could have expected concessions, such as terminal space, from its two rivals had the anti-competitive deal been passed. The only move that Virgin, which is preparing for a $1.5 billion float late this year or early next, would reveal on Friday was that it will steer clear of the Auckland-Sydney route in the foreseeable future.