Hon Phil Twyford
Minister of Transport

MEDIA STATEMENT

5 October 2018

The Government has signed off Air New Zealand and Singapore Airlines’ strategic alliance for the next five years, Transport Minister Phil Twyford has announced.

Phil Twyford said the decision will allow the airlines to continue to cooperate to bring more flights and destinations for passengers travelling to and from New Zealand.

“The services the airlines provide through the alliance strengthens New Zealand’s ties with our close neighbours in South East Asia and with other emerging markets throughout Asia.

“Reauthorisation of the alliance will result in more benefits to travellers. These benefits include a wider range of flight times, more seats and reciprocal frequent flyer schemes,” Phil Twyford said.

Singapore has long been a hub for airline services, connecting New Zealand with the rest of the world. The alliance strengthens this role and provides passengers with a range of connecting flights between New Zealand and Singapore on the airlines’ combined services.

This authorisation applies until 28 March 2024. During this period, the airlines will need to continue to show that the alliance provides real benefits to consumers and that it has not had a negative impact on competition.

More details on airlines alliances

Alliances allow airlines to work together, to better serve the markets which they operate in.
Alliances can result in benefits to consumers, for example, better access to connecting flights, more choices of routes, and the ability to earn and redeem frequent flyer points across the networks of all participating airlines. Alliances also have the potential to reduce costs for airlines, which in competitive markets, results in lower airfares for consumers.

More details on the Air New Zealand – Singapore alliance

The Air New Zealand - Singapore Airlines alliance allows the two airlines to cooperate on routes comprising a sector between NZ and Singapore. Cooperation on these routes includes code-sharing, pricing coordination and optimisation of connection times and joint marketing. The airlines also share revenue on the NZ – Singapore sectors.
One of the main benefits of this alliance is that it provides for better connectivity for passengers travelling between NZ and Southeast East Asia, India and Europe. Under the alliance, the airlines effectively combine their networks. So passengers benefit from Air NZ’s greater access to regional New Zealand and Singapore’s greater international network from its hub in Singapore.
It is also likely that alliance has allowed the airlines to provide greater capacity (number of flights and seats) to/from NZ. This is a result of the mutual support the alliance offers the airlines.

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