Air NZ to continue alliance with Cathay Pacific

Air NZ to continue alliance with Cathay Pacific, targets Asian tourists

By Joshua Riddiford

Aug. 25 (BusinessDesk) - Air New Zealand's has had its alliance with Hong Kong-based Cathay Pacific on the Auckland-Hong route has been extended for another four years after the national airline got sign-off from Transport Minister Simon Bridges.

The carriers each operate one daily return service on the route, increasing to a total of three daily return services over peak months in the northern hemisphere Winter season, Air NZ said in a statement. The agreement has been in place since January 2013 and would now continue until Oct. 31, 2019.

“This alliance has ensured the airlines work together on tourism and marketing initiatives so travellers can continue to benefit from more seats, improved flight schedules, shorter connection times, and reciprocal frequent flyer schemes," Bridges said in a separate statement. "My expectation is that Air New Zealand and Cathay Pacific will continue working to show the alliance is in the best interests of consumers."

Air New Zealand will report its annual earnings tomorrow, and provided guidance for normalised pretax earnings of between $520 million and $530 million in the 12 months ending June 30, up from $332 million a year earlier. The airline has benefited from cheap jet fuel prices and persistently strong demand for its services.

The tie-up comes after Cathay Pacific said it will add an extra 13,500 seats on the Auckland-to-Hong Kong route in the 2015/2016 peak summer travel period.

Government figures show annual visitor arrivals from Hong Kong climbed 42 percent to 33,712 in the year through July 31 compared to calendar 2012.

Air New Zealand shares fell 1.9 percent to $2.62.

(BusinessDesk)

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