< Back

---

Virgin Blue and Air New Zealand have today requested permission to create an alliance on the trans-Tasman after the two airlines confirmed last week that they were in talks.

As part of the deal Virgin Blue and Air New Zealand are requesting permission from competition watchdogs for codesharing on the other’s trans-Tasman services.

On top of this, the two carriers are requesting permission to codeshare on Australian and New Zealand domestic sectors which are parts of a connecting trans-Tasman journey.

Other proposed elements of the alliance include permission to collaborate on route planning, product development, as well as frequent flyer programs.

Brett Godfrey, Virgin Group CEO says in a statement that the alliance will “stimulate a new wave of competition in Australasian aviation”.

“Our alliance is about working closely together to give customers cheaper fares, increased frequency and better connections, while delivering improved returns,” adds Rob Fyfe, Air New Zealand CEO.

Interestingly Virgin Group makes a note that “incoming Chief Executive John Borghetti, thoroughly supports this strategy”.

Mr Borghetti, former Qantas Executive General Manager, oversaw failed attempts by Qantas to align with Air New Zealand on the trans-Tasman.

Despite Qantas and Air New Zealand talks falling through, many believe that the Virgin and Air New Zealand plans are more likely to get the green light from competition watchdogs.

A partnership including Virgin Blue and Air New Zealand will see the two hold around 55% of market-share on the trans-Tasman, which would create a strong dual-brand competitor to Qantas and Jetstar.

It would put smaller trans-Tasman carrier Emirates in an uncomfortable position.

The proposal will have to pass the Australian Competition and Consumer Commission as well as the New Zealand Ministry of Transport.

Back to top