Potential Partnership: Virgin Australia and Air New Zealand Expand Trans-Tasman Flight Options
In an exciting development for Australian travelers, Virgin Australia and Air New Zealand have been granted preliminary approval by the Australian Competition and Consumer Commission (ACCC) for a potential codeshare agreement on trans-Tasman routes. This partnership would allow Virgin Australia passengers to access an unlimited number of seats on Air New Zealand flights, subject to availability.
The codeshare agreement aims to increase ticketing choices for Australians traveling to New Zealand and provide benefits to Velocity frequent flyer program members, including international lounge access. Mick Keogh, Deputy Chair of the ACCC, believes that this arrangement has the potential to bring about positive outcomes for travelers without significantly impacting airfare prices or discouraging Virgin Australia from operating its own flights on other trans-Tasman routes.
The proposed code-sharing arrangement excludes routes where Virgin Australia already operates its own trans-Tasman services or competes with Air New Zealand. This includes routes between Queenstown in New Zealand and Melbourne, Sydney, and Brisbane. By focusing on routes that complement each other rather than directly competing, both airlines hope to promote competition in the market and elicit a competitive response from other trans-Tasman operators.
The ACCC’s preliminary approval also extends to the commercial planning and discussions necessary for the marketing and selling of fares for Virgin Australia’s trans-Tasman services. However, direct or indirect marketing and sale of fares to customers will be excluded until the ACCC makes its final determination. This precaution is in place to avoid any confusion or issues that may arise if the code share arrangement falls apart, ensuring compliance with Australian Consumer Law.
While both airlines are optimistic about the potential benefits of this partnership, the ACCC is awaiting further feedback before reaching a final decision. The draft determination published in the interim report on May 1 seeks to authorize the proposed cooperation of the two airlines. The ACCC is open to receiving feedback on the interim authorization by May 8. If fully approved, the partnership will be granted a five-year authorization period.
Virgin Australia already operates long-haul international flight services on non-reciprocal codeshare arrangements with various airlines, including Qatar Airways, United Airlines, Singapore Airlines, Hawaiian Airlines, All Nippon Airline, and Air Canada. This potential partnership with Air New Zealand would further expand Virgin Australia’s network offer and bring more options to its passengers.
Henry Coles, Head of Airline Partnerships at Virgin Australia Group, expressed his excitement about the potential benefits for Velocity Frequent Flyer members flying to New Zealand. He promises a raft of new benefits as the partnership comes to life.
Overall, this potential partnership between Virgin Australia and Air New Zealand holds great promise for trans-Tasman travelers. If approved, it would provide more ticketing choices and loyalty program benefits while promoting healthy competition in the market. The ACCC’s thorough evaluation process ensures that the interests of consumers are protected, and the final determination will be eagerly awaited by both airlines and travelers alike.
