Summary Virgin Australia and Air New Zealand have reconciled, with a partnership set to benefit customers with greater value and loyalty rewards. The codeshare agreement, endorsed by the ACCC, will allow Virgin Australia's customers access to a comprehensive network between Australia and New Zealand. Air New Zealand also stands to benefit from the partnership, driving more Australians onto its aircraft and retaining its market share.
Most of us know a couple who fell out of love and separated, only to rekindle the flame and get back together a few years later, with differing levels of success. Today we discovered that a very bitter and public falling out in 2018 between Virgin Australia and Air New Zealand has been forgiven and forgotten, with the couple announcing they are getting back together. What it means for customers In November last year, the reborn Virgin Australia and Air New Zealand floated the idea of a partnership and submitted applications to enter into a unilateral trans-Tasman codeshare agreement to their respective competition regulators.
Rather than rehash old ground , we can jump to today when Virgin Australia announced the deal is good to go and will be up and running before the end of the year. The Australian Competition and Consumer Commission (ACCC) cleared the codesharing agreement in June, subject to Air New Zealand agreeing to set the fares at which Virgin Australia can market and resell the flights. It's also important to remember that this is a unilateral agreement, which means, in essence, it benefits Virgin Australia customers.
Given the benefits this brings to Australians, it's no surprise that Virgin Australia Chief Strategy and Transformation Officer Alistair Hartley was pretty happy and bullish about the outcome. He said the long-awaited partnership would give Virgin Australia's customers access to a comprehensive network between Australia and New Zealand. "Australians share our love of New Zealand and its national carrier and we can't wait to reignite this partnership before the end of the year.
The regulator's endorsement reflects the strong consumer benefits the partnership will unlock, including greater value, choice and loyalty rewards for travellers across the Tasman." Australian airline capacity between Australia and Vanuatu will jump from 880 seats weekly to 3,102 weekly. Today's announcement said Virgin Australia (VA) customers will be able to directly book Air New Zealand flights into Auckland, Wellington and Christchurch, complementing VA's existing services to Queenstown.
VA's highly successful loyalty program is Velocity Frequent Flyer , and its members can earn and redeem Velocity Points and access lounges when flying across the Tasman, subject to eligibility. A good deal for Air New Zealand Air New Zealand Chief Transformation and Alliances Officer Mike Williams said the rekindled relationship would make it even easier for more Australians to make the short hop across the ditch, with customers enjoying a taste of New Zealand before they've even landed. "We know our Aussie friends are a travel-hungry bunch, so whether it's just a quick weekend trip to catch up with family or wanting to explore more of New Zealand, this partnership provides further options for more Australians to visit beautiful Aotearoa.
" Perhaps the real rivalry here is between Air New Zealand and Qantas, with the Australian flag carrier increasingly competitive to gain the upper hand on the lucrative markets that provide strong demand throughout the year. The partnership with VA will drive Australians onto Air New Zealand's Airbus A321neos , Boeing 777s and other trans-Tasman aircraft, helping it retain its market share. Today marks ten years since the first Air New Zealand 787-9 landed at Auckland Airport, ushering in a new era of passenger comfort.
As the marketing carrier, Virgin Australia will be able to sell unlimited seats on Air New Zealand's services, subject to available inventory. The codeshare authorization does not affect routes where VA operates its own aircraft, such as between Queenstown and Melbourne, Sydney and Brisbane, or on a route where the Australian airline competes with Air New Zealand..
