Trans-Tasman Alliance

ON DECEMBER 16 the Australian Competition and Consumer Commission gave approval for the proposed trans-Tasman alliance between Air New Zealand and Virgin Blue.
“I’m pleased that formal approval has been given recognising the benefits this will bring to our customers,” said Air New Zealand Chief Executive Officer Rob Fyfe.
As part of the process Air New Zealand and Virgin Blue were able to respond to the ACCC’s draft determination and address initial concerns by providing guarantees on capacity growth.
“I would like to thank the ACCC for its thorough consideration of the issues and coming to a determination that favours customers and will see the Tasman market continue to grow,” says Mr Fyfe.
Air New Zealand expected a decision on its alliance application to the New Zealand Minister of Transport as this edition went to press.
The alliance comprises the following key components:
1) A broad free-sale code share arrangement covering all Tasman sectors currently operated by either airline and domestic sectors forming part of a connecting Tasman journey.
2) A revenue allocation agreement supported by a joint trans-Tasman Network Planning and Revenue Management team.
3) Reciprocal frequent flyer and lounge access agreements