Virgin Blue and Air New Zealand Battling for Trans-Tasman Route

Virgin Blue and Air New Zealand Battling for Trans-Tasman RouteNo major agreement has been achieved by Virgin Blue Holdings Ltd. and Air New Zealand Ltd., regarding the prospective Trans-Tasmanian alliance. Both the major airlines are battling each other fiercely, to win the route.

The media too, had been speculating over the agreement. Australian media reported that the meetings were regarding the equity holdings. The carriers are looking forward to cut their cost with the Trans - Tasman route.

Air New Zealand confirms the news of the ongoing discussions for the Trans-Tasman agreement. Air New Zealand flies approximate 2.1 million passengers between Australia and New Zealand. It will make the best possible moves to maintain and increase this number.

The route between Sydney and Auckland is one of the busiest International airline routes in Australia. Estimated 5.3 million passengers use the route. This report was given by the Bureau of Infrastructure, transport and Regional Economics of Australia.

RBS analyst, Mark Williams believes that two kinds of approaches are possible to achieve results. One being codeshare arrangement and the other being full joint venture arrangement.

More cooperation is expected from Virgin blue and Air New Zealand. Mutual collaboration will only help in cutting down the cost, rationalizing the schedules of the flight as well as the engineering costs.

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