Air NZ & Virgin Blue propose alliance

Air New Zealand and Virgin Blue have announced intentions to seek regulatory approval to start an alliance on trans-Tasman routings.

An alliance would allow the airlines to strengthen competition in the sector as well as work together on future route and product planning, code sharing and frequent flyer programme benefits. It could take six months for regulators to approve the application, as reported in Air New Zealand's official press release.

Co-founder and CEO of the Virgin Blue Airlines Group, Brett Godfrey, said the alliance would stimulate new competition in Australasian aviation. He added: "We believe we are well matched and the timing is good and incoming Chief Executive, John Borghetti, thoroughly supports this strategy."

The airlines said that while the proposed alliance is a significant development for both carriers, it will not impact or place restrictions on any existing partnerships or alliances of either airline.

The proposed alliance will connect regional centres in Australia and New Zealand but only as part of a Tasman journey and does not include domestic-only travel in either Australia or New Zealand.

You can watch our interview with Brett Godfrey, which took place during the recent Routes Asis event in Adelaide on our home page in the video section at: www.routesonline.com.