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.

Canadian Helicopters Group is the largest helicopter transportation services company operating in Canada. The Transaction purchase price is NZ$160 million (approximately C$120 million), on a debt free and cash free basis, and is subject to customary adjustments.

HNZ is New Zealand’s largest and most diverse helicopter owner and operator with 55 years of operating history throughout New Zealand, Australia and Asia. Through the years, HNZ has built an enviable set of client relationships and experience through a focus on impeccable safety standards and service quality.

HNZ’s head office is in Nelson, New Zealand, and the company has 11 bases to support operations across New Zealand, Australia, Laos and Cambodia. HNZ also has a corporate office in Perth to support its significant Australian operations. HNZ has 181 employees, a modern fleet of 33 helicopters, and revenue of NZ$83 million (approximately C$62 million) and EBITDA of NZ$28 million (approximately C$21 million) for the twelve months ended December 31, 2010. As of June 30, 2010, HNZ’s 33 helicopters had an appraised value of NZ$137 million.

Don Wall, President and Chief Executive Officer of Canadian Helicopters, said the acquisition of HNZ represents a transformational investment for CHL and in a part of the world that complements CHL’s activities in the northern hemisphere. Acquiring HNZ will assist in providing greater stability as it extends the arm of CHL’s existing operations in Canada, the United States and Afghanistan, he said.

Wall reiterated that HNZ has excellent people and a very strong brand particularly with respect to safe operations, and will be a significant part of CHL’s growth plan as the firm looks to the future. Like CHL, HNZ operates in challenging environments and positions itself as providing “excellence in the extremes,” he stated.

HNZ’s CEO Brian McDonald said HNZ has grown from a local New Zealand based company to an internationally respected operator involved in all aspects of helicopter operations. McDonald said the investment offers an opportunity to continue to maintain HNZ’s high level of quality services and continue to grow and enhance the business for all stakeholders, including its clients and staff, in the future through Canadian Helicopters’ ownership.

Air New Zealand shares fell after the company made the A$145 million investment in a minority stake in new trans-Tasman partner Virgin Blue.

Rob Fyfe, Air New Zealand Chief Executive Officer, said however that there were no plans to make a takeover bid for Virgin Blue.

Air New Zealand obtained Australian Foreign Investment Review Board approval to purchase up the 14.99% percent of Virgin Blue; a shareholding which it believes will keep the total foreign ownership of Virgin Blue within the statutory limit of 49%. Virgin Group based in the UK has a 26% shareholding.

According to Mr. Fyfe, the investment in Virgin Blue is part of Air New Zealand’s strategy to develop scale and reach in the region. The Tasman alliance with Virgin Blue was the first step in this strategy, he said, adding that the investment cements the emerging relationship between Air New Zealand and Virgin Blue and demonstrates the confidence Air New Zealand has in Virgin Blue both as an entity and as a partner for Air New Zealand.

Confirming that Air New Zealand had no intention to go over 14.99%, Fyfe noted that the investment was merely a move that reinforces Air New Zealand’s strategy to grow its business in Australasia which, according to him, is continually evolving as a single aviation market. The Tasman alliance with Virgin Blue was a key step in this strategy.

For Fyfe, the investment provides Air New Zealand with an interest in the number two airline in Australia and, through this, access to the opportunities in the growing Australian domestic market.

Air New Zealand last month won approval to cooperate with the Brisbane-based carrier on flights across the Tasman Sea as it competes with Qantas Airways Ltd and Emirates Airline. It bought more shares in Virgin Blue off-market overnight, according to the statement.

The stake purchase was made from existing cash resources. The investment marks a return to Australia for Air New Zealand, which previously controlled Ansett Holdings Ltd. The failure of Ansett in 2001 eventually forced the New Zealand government to buy a controlling stake in Air New Zealand to save its flag carrier from collapse.

Under the Alliance, the airlines would take a coordinated approach to a range of issues including pricing, revenue management, schedules, capacity and routes flown. ACCC chairman Graeme Samuel said the agency considered that the Alliance is likely to benefit passengers in a number of ways including more choice of routes and frequencies, and potentially lower fares as a result of cost savings and efficiency improvements.

He further added that the ACCC is still concerned that the Alliance may affect competition on a number of routes between Australia and New Zealand, particularly routes involving Wellington. However, the ACCC has imposed a number of conditions on authorization which are designed to address these competition concerns, he noted.

Broadly speaking, the conditions require the airlines to maintain and grow the number of seats flown on the routes where the ACCC has identified competition issues. The conditions are intended to restrict the ability of the Alliance to raise fares on these routes by limiting its capacity.

The ACCC previously issued a draft determination proposing to deny authorization for the Alliance. Since then, the ACCC has received a substantial amount of information from the applicants and interested parties about the likely public benefits and detriments.

The ACCC is now satisfied that the identified public benefits, in combination with the conditions of authorization, are likely to be sufficient to outweigh any public detriment arising from the alliance, read its press release.

The applicants sought authorization for five years. Given the significant role of the authorization conditions in the balance of benefits and detriments, the ACCC considers it appropriate to review developments earlier. As such, the ACCC has granted authorization until 31 December 2013.

Authorization provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorization when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Air New Zealand chief executive officer Rob Fyfe said in an announcement to the NZX that he was delighted that formal approval has been given recognizing the benefits this will bring to the firm’s customers.

The firm had entered into an agreement with New Zealand based Air New Zealand for a merger, a plan that was thwarted by Australian regulators, arguing that it will affect competition along the transtasman routes. The collaboration between the two firms would have seen them work together on future routes and product planning, code sharing and frequent flyer program, benefits.

The move got a blow after the Australian competition watchdog, the Australian Competition and Consumer Commission (ACCC) issued a ruling last week spurning the deal via a draft proposition. However, speaking over the drawback, Borghetti said the ACCC had invited additional presentations from Virgin Blue to substantiate the public benefits of the merger plans.

Borghetti said he believed the merger stands to offer greater competition, cheaper fares, more flights and better connections and as such, these outcomes stand to benefit consumers. He further added that even the competition watchdog had noted that there are gains to be made from the merger, inclusive of costs savings and efficiencies.

However, the competition watchdog has doubts over the merger’s scale of benefits. Arguing for the bid to merge, Borgheti further said that the firm is keen on improving its competitive position for both commercial and leisure travelers to turn them to profit, an objective the merger is capable of achieving, he said.

ACCC chairman, Graeme Samuel, said Virgin Blue was a major competitor to Air New Zealand and there were a number of transtasman routes where the alliance raised competition concerns. According to Samuel, such routes where there is concern represent about one quarter of passenger traffic in the transtasman market.

Virgin Group founder Sir Richard Branson, speaking to Australian broadcaster ABC’s Sunday Profile, said he was baffled by the ACCC’s decision. According to him, Virgin Blue may withdraw from the transtasman market. Qantas had alliances with airlines around the world, including British Airways, Branson said. According to Branson, the regulator should treat Virgin Blue equally, just like it did with Qantas, and allow the firms create a level playing field.

The firm had entered into an agreement with New Zealand based Air New Zealand for a merger, a plan that was thwarted by Australian regulators, arguing that it will affect competition along the transtasman routes. The collaboration between the two firms would have seen them work together on future routes and product planning, code sharing and frequent flyer program, benefits.

The move got a blow after the Australian competition watchdog, the Australian Competition and Consumer Commission (ACCC) issued a ruling last week spurning the deal via a draft proposition. However, speaking over the drawback, Borghetti said the ACCC had invited additional presentations from Virgin Blue to substantiate the public benefits of the merger plans.

Borghetti said he believed the merger stands to offer greater competition, cheaper fares, more flights and better connections and as such, these outcomes stand to benefit consumers. He further added that even the competition watchdog had noted that there are gains to be made from the merger, inclusive of costs savings and efficiencies.

However, the competition watchdog has doubts over the merger’s scale of benefits. Arguing for the bid to merge, Borgheti further said that the firm is keen on improving its competitive position for both commercial and leisure travelers to turn them to profit, an objective the merger is capable of achieving, he said.

ACCC chairman, Graeme Samuel, said Virgin Blue was a major competitor to Air New Zealand and there were a number of transtasman routes where the alliance raised competition concerns. According to Samuel, such routes where there is concern represent about one quarter of passenger traffic in the transtasman market.

Virgin Group founder Sir Richard Branson, speaking to Australian broadcaster ABC’s Sunday Profile, said he was baffled by the ACCC’s decision. According to him, Virgin Blue may withdraw from the transtasman market. Qantas had alliances with airlines around the world, including British Airways, Branson said. According to Branson, the regulator should treat Virgin Blue equally, just like it did with Qantas, and allow the firms create a level playing field.

Other than that, the airline will also launch new additional services between Melbourne to Queenstown, Gold Coast to Queenstown and Auckland to Cairns. Bruce Buchanan, Jetstar chief executive, reiterated that the carrier as well plans on increasing its daily operations between Auckland, Christchurch and Wellington before the Rugby World Cup in 2011.

In addition, the carrier is also contemplating an expansion of its current domestic New Zealand routes, other than adding new destinations. According to Buchanan, the move is in line with the company’s bid for an expanding market presence ever since it begun its domestic business last year. Even so, the move is thought to be aimed at taking advantage of the exit of the Virgin Blue Group from the New Zealand market.

Virgin Blue reiterated that it was leaving due to New Zealand’s underperforming airlines market. Virgin Blue will now focus on its trans-Tasman, Pacific and Asian networks, said the firm. Air New Zealand had taken a similar move earlier, reporting that it plans to take advantage of Virgin Blue’s departure by taking up all of its passengers.

According to Air New Zealand Group general manager Australasia, Bruce Parton, the airline is currently in touch with Pacific Passengers to discuss their options. Blue Virgin’s passengers will be rebooked onto Air New Zealand services so the disruptions are as minimal as possible, he added. Jetstar Airways is an Australian low-cost airline headquartered in Melbourne, Victoria, Australia. It is a subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue Airlines, which is now leaving the New Zealand market.

The national carrier further urged the New Zealand Commerce Commission to nullify the deal and let a proper tender process be instituted in order to tackle what the carrier termed as Auckland International airport’s “monopolistic position.” As such, the national carrier said it was prepared to support an inquiry over the deal. According to Bruce Parton, the national carrier’s local general manager, the deal between Auckland International airport and Queenstown airport may affect the tourism sector in Queenstown as it stands the risk of coming under the control of “greedy airports”.

He further termed the deal as “shoddy” reiterating the fact that it was undertaken behind closed curtains as no one was aware the two were keen on an investment. He further added that the two should have put the sale on the market, rather than having it behind closed doors, a fact for which, according to him, saw Auckland International airport acquire a 24.9% stake in Queenstown airport for $29 million, a sum he found “meager.”

Additionally, the investment was apparently undertaken minus any advice from the council and the fear over its impacts on tourism surface from Auckland Airport’s high charges such as for tickets, high taxi prices that may scare away tourists from Queenstown.

Air New Zealand has plans with other airlines such as Pacific Blue, Qantas and Jetstar for the creation of a group keen on purchasing a stake in Queenstown airport and guarantee low prices that will favor tourists in the long run. According to Bruce, the partners of the group to be formed will forgo dividends and instead reinvest into the airport’s infrastructure to retain its world class appeal and meet the burgeoning demand as all airlines will offer level domestic and transtasman fares.

However, Auckland International airport said it does not consider the Air New Zealand attacks serious, reiterating that the alliance was keen on growing tourism in the region considerably, said a company spokesperson. Even so, the Board of Airline Representatives said through its spokesman that it was concerned over Auckland International Airport’s use of its monopoly power and the impacts it might have on tourism in Queenstown.