Air NZ, Virgin Australia To End Seven-Year Partnership

Air New Zealand has announced the end of its seven year trans-Tasman partnership with Virgin Australia on routes between the two countries.

The alliance received regulatory approved in 2010 and is due to expire at the end of October. Air New Zealand’s announcement that it will not apply for an extension signals its intention to ramp up competition on trans-Tasman routes.

“Australia is the largest source of inbound visitors to New Zealand and Air New Zealand has built up a significant presence in this market,” Air NZ’s chief revenue officer Cam Wallace said. “This move will enable us to deliver a more consistent customer experience by using our own fleet and delivering an improved schedule.”

The airline said current alliance arrangements will remain in place until October 27 and passengers booked on flights before then will not be affected.

The Kiwi flag carrier will remain the largest airline between Australia and New Zealand, with Australia’s Qantas as its main competitor.