Virgin Australia and Air NZ to Form New Partnership

[Mattg]

No they couldn’t. It’s specifically approved as a unilateral codeshare (VA*NZ) and only valid on ex AU bookings (either AU-NZ one way or AU-NZ-AU).

There is nothing in the approval that would allow NZ*VA, nor ex NZ bookings.

In any case ZQN-BNE is such a route under your criteria.

Fair enough. What I probably should have said, is that if VA had such a route, they could probably apply for NZ to codeshare on it and it shouldn't be a problem. Anyway, a moot point. I don't see ZQN-BNE getting approved as ZQN is a common market for both airlines.

 

[justinbrett]

Fair enough. What I probably should have said, is that if VA had such a route, they could probably apply for NZ to codeshare on it and it shouldn't be a problem. Anyway, a moot point. I don't see ZQN-BNE getting approved as ZQN is a common market for both airlines.

That's assuming NZ would want to. Outside of AKL/WLG/CHC/ZQN, I'd imagine NZ would rather those pax fly to AKL and then on its own metal over the Tasman. I'm not so sure the NZ*VA codeshare would be approved as it completely changes the proposed conduct into a two way partnership, and nothing in this approval improves NZ's ability to compete with QF or other carriers. Once you start unravelling that then you have to relook at the whole thing. This only advantages VA which has a minimal presence on TT so it's a no brainer, the reverse, not so much.

Having said all that if NZ really did want to codeshare I don't see how ZQN-BNE would be any harder than a hypothetical DUD-SYD or similar. ACCC usually work on routes, not markets, especially with such an integrated market as TT. IIRC it was specifically the SYD-CHC route that raised a red flag for the QF/EK deal - not the SYD or CHC markets generally.

 

[duanemiller]

I have a trip planned for early next year and I’m VA Plat. Couple of clarifying questions…
Do you think I’ll be able to book MEL-AKL-MEL through VA with benefits or just MEL-AKL one way?
Will I be able to book MEL-AKL-TRG-AKL-MEL all on one ticket or the NZ domestic flights will need to be on a separate booking?
I know we don’t have all the details but I’m trying to read between the lines.

 

[HS-TQE]

I have a trip planned for early next year and I’m VA Plat. Couple of clarifying questions…
Do you think I’ll be able to book MEL-AKL-MEL through VA with benefits or just MEL-AKL one way?
Will I be able to book MEL-AKL-TRG-AKL-MEL all on one ticket or the NZ domestic flights will need to be on a separate booking?
I know we don’t have all the details but I’m trying to read between the lines.

The VA one-way agreement does not cover the NZ domestic network. It's possible that AKL-TRG-AKL may be booked through a TA as an interline ticket, however no FF benefits apply to the domestic NZ legs.

 

[justinbrett]

Do you think I’ll be able to book MEL-AKL-MEL through VA with benefits or just MEL-AKL one way?

Yes. You can book one-way ex AU, or return ex-AU. However you could not book them as two one-ways as NZ-AU is not permitted.

Will I be able to book MEL-AKL-TGA-AKL-MEL all on one ticket or the NZ domestic flights will need to be on a separate booking?

It's unlikely you can book NZ domestic through VA, certainly not with VA codes but there's also been no mention of being able to do it with NZ codes. So you definitely wouldn't get status, lounge or earn points on the domestic legs.

I'd imagine a TA could book them all on the one PNR for you.

 

[Mwenenzi]

I have a trip planned for early next year and I’m VA Plat. Couple of clarifying questions…
Do you think I’ll be able to book MEL-AKL-MEL through VA with benefits or just MEL-AKL one way?
Will I be able to book MEL-AKL-TRG-AKL-MEL all on one ticket or the NZ domestic flights will need to be on a separate booking?
I know we don’t have all the details but I’m trying to read between the lines.

The VA one-way agreement does not cover the NZ domestic network. It's possible that AKL-TRG-AKL may be booked through a TA as an interline ticket, however no FF benefits apply to the domestic NZ legs.

VA NZ is for TT only.
You could book with QF or AirNZ for MEL-AKL-TRG-AKL-MEL with the AU-NZ domestic flights as a code share operated by the other airline. TRG-AKL-MEL on 1 PNR would help with bag interlining

This VA NZ agreement is really a non event. Only a few will benefit compared to amount of trans Tasman traffic.

 

[HS-TQE]

Opponents of the one-way/unilateral VA/NZ agreement speak out from New Zealand.

NZ Herald Paywall: Air fare warning: Squeeze on transtasman competition bad news for Kiwis

Kiwi travellers will lose out from a deal between Air New Zealand and Virgin Australia that keeps a lid on airline capacity across the Tasman, say opponents of the agreement.

 

[ben95]

Opponents of the one-way/unilateral VA/NZ agreement speak out from New Zealand.

I’ve read some of those submissions to both ACCC and NZ MOT and can say they’ve only stated the obvious while lacking any evidence to back up their claim. They are, perhaps fanciful, to think VA will just restart trans-Tasman services absent this arrangement in the near future. I couldn’t find NZ MOT’s release but ACCC already made a good point on the margin and incentive analysis. I doubt this would have meaningful effect to airfare good or bad.

Perhaps it make sense though. Airport operators would love more trans-Tasman flying. While airlines are looking to cut back unprofitable routes due to the sustained high oil prices and supply chain issues with engines and new aircrafts. An airport would charge the landing fee regardless of how full that plane is.

 

[Mwenenzi]

. I couldn’t find NZ MOT’s release but ACCC already made a good point on the margin and incentive analysis. I doubt this would have meaningful effect to airfare good or bad.

Hard to find anything substantial on the NZ Govt decision.
NZ Govt Te toha waehere me ngā whakaaetanga mahi tahi o ngā whakahaere waka rere | Airline code-share and alliance agreements

August 2024: Air New Zealand and Virgin Australia codeshare agreement authorised​

On 22 August 2024, the Associate Minister of Transport authorised a Commercial Framework Agreement, Codeshare Agreement, and various related agreements between Air New Zealand and Virgin Australia for a period of 5 years until 22 August 2029.

 

[justinbrett]

Considering sales are blocked ex-NZ it would be hard for NZCC to make an argument against it.