Air New Zealand and Virgin Australia Airlines announce plans for new-look joint trans-Tasman network

Comments Off | 05-18-2011

Air New Zealand Ltd and Virgin Australia Airlines Tuesday announced plans for their new-look joint trans-Tasman network, a key part of their new alliance.

The alliance will connect Air New Zealand’s domestic network of 26 ports to Virgin Australia’s domestic network of 31 domestic ports, offering the largest ever Australasian route network for trans-Tasman travelers.

The new network will be effective for the upcoming Northern Winter 2011 schedule (November 2011 – March 2012) and tickets will be on sale from July this year when the code share commences.

Under the new network, Air New Zealand will operate approximately 70% of the capacity and Virgin Australia’s Pacific Blue airline will operate 30%, similar to the relative market share the airlines had prior to the commencement of the Alliance.

Total capacity is currently above that required by the alliance proposal to the Australian Competition and Consumer Commission (ACCC) and New Zealand Ministry of Transport (MOT).

The planned joint trans-Tasman network will see the adjustment of Air New Zealand and Pacific Blue flight times to ensure more convenient schedules for passengers.

Total capacity to and from Auckland remains unchanged, including Air New Zealand’s wide body services on Auckland-Sydney, Auckland-Melbourne and Auckland-Brisbane.

Air New Zealand Group General Manager Australasia Airline Bruce Parton said since the airline received ACCC and MOT approval in December 2010, it has had dedicated teams from both airlines working closely together to optimize the network.

The changes better match capacity to demand and in many instances this means a greater range of flight times by removing ‘wingtip flying’, as well as better connections to domestic Australia and domestic New Zealand flights, said Parton.

Virgin Australia Group Executive, Commercial, Liz Savage noted that with plans for the joint network now in place, Virgin is focusing on the launch of its comprehensive product offering in early July.

Virgin will provide reciprocal Velocity and Airpoints frequent flyer programs and lounge access in Australia and New Zealand, as well as a coordinated offering of in-flight products and services, so that guests will receive similar first-rate service and benefits, no matter which airline they fly, he said.

According to Savage, Virgin Australia and Air New Zealand are also committed to growing the market, with plans to grow capacity further from March next year for the Northern Summer schedule.

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Posted in Aviation New Zealand, Foreign Direct Investment/FDI New Zealand, General |

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