On 20 September 2013, the Minister of Transport (Hon Gerry Brownlee) announced his decision to reauthorise the trans-Tasman Alliance between Air New Zealand and Virgin Australia. Under the Alliance, Air New Zealand and Virgin Australia will:
- fully cooperate and coordinate on all aspects of their international services on the trans-Tasman routes
- code share on the Network Alliance Routes
- work together to align their customer facing products and systems on the trans-Tasman routes to:
- achieve metal neutrality – where each applicant faces equal incentives to sell tickets on their own aircraft as well as aircraft of their partner on trans-Tasman sectors; and
- provide passengers with a harmonised and integrated product with consistent service and seamless check-in, transfers, baggage and other services
- cooperate in achieving cost savings, cost sharing and other efficiencies
- work together to optimise their operations on the trans-Tasman routes by developing a network that matches aircraft type to route and focuses each Operating Carrier on its market strengths and primary operating hubs
- cooperate to develop new Tasman products that customer’s value.
The Alliance was initially authorised by then Minister of Transport (Hon Steven Joyce) on 21 December 2010, for a period of three years. Authorisation was subject to compliance with the Alliance Capacity Implementation Agreement, which required the applicants to at least maintain base year (pre-alliance) capacity on the Tasman overall, and increase capacity on certain routes.
The Alliance has been reauthorised for a period of five years (until 31 October 2018). Under the terms of reauthorisation in New Zealand, the airlines will not be required to meet any minimum capacity requirements. However, they will be required to meet minimum capacity requirements which have been imposed in Australia by the Australian Competition and Consumer Commission.
View the Ministry of Transport report on the application for reauthorisation of the trans-Tasman Alliance [PDF, 1013 KB].
The following submissions and comments were received in response to the application.
- Auckland International Airport (PDF, 233kb)
- Christchurch and Canterbury Tourism (PDF, 166kb)
- Attachment to Christchurch and Canterbury Tourism submission - Tasman Capacity (xls, 32kb)
- Christchurch International Airport (PDF, 915kb)
Christchurch International Airport Limited no longer opposes extension of the alliance without capacity commitments, based on material supplied by Air New Zealand.
- Dunedin International Airport (PDF, 1.08mb)
- Key Wellington Stakeholders (Greater Wellington Regional Council, Grow Wellington, Positively Wellington Tourism, Wellington City Council, Wellington Employers' Chamber of Commerce, Wellington International Airport Limited)
- NZ Airports (PDF, 308kb)
- Rotorua Regional Airport (PDF, 930kb)
- Tourism Industry Association New Zealand (PDF, 131kb)