United, Air NZ Agree Revenue-Sharing Deal

March 10, 2016

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Air New Zealand and United Airlines have struck a revenue-sharing agreement, as airlines boost flights to New Zealand's fast-growing tourism market.

The agreement will come into force in July if it receives regulatory approval, and would see the airlines coordinate sales and marketing to offer more flight options and better schedules on trans-Pacific routes, the companies said in a statement.

United would at the same time launch a flight to Auckland from San Francisco, which would initially operate three times a week and increase to a daily flight from November.

New Zealand in the past year has posted record tourism and migration numbers as airlines ramped up flights and introduced new routes to the Pacific nation from the United States, Latin America, China and the United Arab Emirates.

"To have a strong home market carrier like United Airlines working with us to grow this market through its extensive sales and distribution channels in the US will provide a significant boost to inbound tourism," Air New Zealand's chief executive Christopher Luxon said in a statement.

The airlines have worked together on code-sharing and frequent flyer points since 2001.

(Reuters)