Arch-Rivals Qantas And Air New Zealand Announce Surprise Partnership

James, I keep hearing that this doesn’t neee regulatory approval because it’s just a codeshare arrangement. Have you looked into this?

Elements of a cartel aiming to damage the business of a 3rd party. Not good for consumers.

James -Quick question. Does this mean that Qantas flights (using NZ Codeshare flight numbers) will be eligible for United's Excursionist Perk. I.e flying UA from SFO to SYD, using an NZ Codeshare on QA metal SYD-MEL, then MEL-SFO on the return.

Previously this would have been impossible since there were not Intra-Austrailia Star alliance partners.

Potentially a really nice perk for United awards or am I misinterpreting this?

Virgin Australia must have pissed off Air New Zealand in a big big way. I think this will be approved as they're not codesharing in the trans-trasmanian market. That would lead to a monopoly and there's zero that would get approved.

I was indeed very surprised when i read that last night. Virgin Australia is now left outside alone.
Very interesting.

This seems like it would (at least slightly) damage NZ domestic competition. If Qantas can start funneling passengers into AirNZ flights, surely it's going to impact Jetstar's domestic operations?

FWIW - Virgin Australia has been feeding Singapore Airlines Trans-Tasman route (Melbourne-Wellington). At first I thought that was a very strange Trans-Tasman combination being listed on search engines. I would have thought that Virgin Australia would've been feeding the Air New Zealand MEL-WLG flight - but nope - VA definitely feeding SQ.

Regulatory approval is not needed for these codeshares.

Qantas will still continue to book passengers onto Jetstar NZ domestic services.

Also it was quite evident that VA had well and truly pissed NZ off. I mean NZ went from partner and shareholder to basically selling out as quickly as they could and wanting as little to do with VA as quickly as was possible. Luxon wanted to remove Borghetti as CEO, but was unable to. The next VA partner very unhappy is SQ... Virgin Australia have no strategy at the moment and no idea what they’re doing.

What a mess.

I don't think this will easily get past the anti-trust watchdog ... and I'm sure Virgin will do whatever possible to send the watchdog out!

will you be able to redeem AA miles for NZ domestic travel on air NZ w/ qantas codeshare? and UA miles for AUS domestic travel on qantas w/ air NZ codeshare??

Borghetti needs to go... as simple as that. Everyday VA is losing strength and their “virtual alliance” is becoming more of a joke. Yes, he did great things but time to call it quits and let someone else with fresh ideas to step into the role. Otherwise I’m afraid this is going to be like Ansett.

If SQ gets pissed off, VA will mainly rely on EY which is as disastrous like them atm and DL. So time for VA to think of joining an alliance (hello Sky team, even if it’s crap, it will save them).

By the way things are unfolding for VA, I would be a very nervous gold/platinum VA FF and looking for a status match somewhere else...

This is a codeshare agreement only & not a joint venture or the likes.
Therefore it's not subject to regulatory approval apparently. That's the thing that stinks!

I'm wondering how Singapore Airlines is feeling about this, with them having a joint-venture with Air New Zealand & all & then also shares in Virgin Australia. I'm sure they're a little peed at Christopher Luxon (NZ CEO) at the moment!

Interesting times in the skies of the land Down Under!

@PVM, why would Singapore airlines be peeved at Air NZ? Not like SQ are particularly happy with VA cosying up to their Chinese shareholders (both onward flights and capital). Borghetti pissed off SQ when they took on Hainan

Oh no less and less value for my VA platinum card then

So that means even more options with Alaska miles

While the deal itself doesn't require ACCC (Australian regulator) approval, it seems like it has review powers and could strike the deal down as anti-competitive

@PVM
SQ & Air NZ already have a sort of joint venture between Singapore and New Zealand. Air NZ now even operates one of the frequencies that were previously operated by SIA between Changi & Auckland. SIA can't be bothered in this case. If anything, they're in bed with Air New Zealand.

So the elite powers are winding down control of the Virgin brand or getting rid of it all together.

VX Gone
VS 80% owned by other carriers now
VA ??? They are coming for you!!

Legacy airlines seems to like the "entre-soi" between us legacy habits.

"Those challenging airlines are boring now, let's go back to the old legacy way between ourselves" they must think ^^

Everyone who thinks this will increase the ability to use AA/AS/UA/whatever miles is in for a disappointment. On codeshare flights it is the operating carrier that matters for the ability to book award seats. Except in some very rare circumstances, award seats are not made available under the code of the codesharing carrier.

@ Jordan - I think VS has probably never been stronger with its close ties to Delta.

Qantas has spent much of the the last few decades trying to destroy Air New Zealand, even the Ansett debacle had their fingerprints on it. While this move doesn’t accomplish that goal, it does substantially weaken Virgin’s position as their only domestic competitor and ties up ANZ from any other way of competing in Australia. QA wins here. NZ doesn’t lose, but they aren’t winning like they think they are. I can’t help but think that Luxon is really still punishing Borghetti for not doing what he wanted.

between this and the MU flight to PIT, I thought that it was a Joke...

Honestly, I would've expected a DL and NH codeshare long before this (hence DL selling NH tickets)

The JV is not really surprising seeing that both CEOs see a common enemy in Borghetti.

Although VA doesn't have the money to join an Alliance, joining SkyTeam would be beneficial for them (esp their TransPac JV partner Delta). It may also help them with their loads on their Trans-Tasman flights and may give them a option to join up with GA through handing over the remaining DPS flights to GA in return for GA putting a code on their East Coast-NZ flights.

SQ is going to have to live with it should they chose not to exit VA. The door is firmly shut on the Star Alliance option as rivals NZ and UA would veto/block any VA entry, and Oneworld is out of the question due to their bigger brother.

It’s actually funny I am in NZ now and flew QF over and am leaving on Air NZ to MEL then VA to Perth as the codeshare

While this move doesn't automatically require regulatory approval, I'd hope that it can be assessed for being anti-competitive.

It's bad for the consumer to cede the market to a partnered duopoly, as this move does.