Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Air NZ, Virgin Blue get green light from Joyce for alliance

Air NZ, Virgin Blue get green light from Joyce for trans-Tasman alliance

Dec. 21 (BusinessDesk) – Air New Zealand and Virgin Blue have won approval from Transport Minister Steven Joyce to cooperate on routes across the Tasman Sea.

The decision follows approval being granted by Australia’s antitrust regulator this month, reversing its preliminary view, after the two airlines gave guarantees on growth in capacity. Joyce was also swayed by their commitment to maintain passenger numbers on the Tasman, according to his statement.

The two airlines will code share on Tasman and connecting domestic flights and offer reciprocal frequent flyer and lounge access agreements. Their alliance was in response to Qantas Airways Ltd.’s two-airline strategy where its low-fare Jetstar unit operates domestically in New Zealand and links to longer-haul flights on its parent.

Shares of Air NZ rose 0.7% to $1.50 on the NZX and Virgin Blue rose 1.1% to 45.5 Australian cents on the ASX.

Joyce said other airlines on the Tasman “will continue to provide strong competition for the alliance on most routes within and between both Australia and New Zealand.”

He authorised the alliance for a period of three years and said the time limit “will place a strong incentive on the two airlines to operate in a competitive manner.”

“How Air New Zealand and Virgin Blue implement the alliance, as well as the state of the market, will be taken into account in deciding whether further authorisation is given,” he said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>


Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>


Price Of Cheese: Fonterra CEO Goes Early After Milk Price Trimmed

Aug. 15 (BusinessDesk) - Fonterra Cooperative Group chief executive Theo Spierings is leaving the role early after the world's biggest dairy exporter lowered its farmgate payout and trimmed its dividend to retain cash. More>>