Air New Zealand Teaming up with Rival Virgin Blue

Air New Zealand Teaming up with Rival Virgin BlueIt has been reported that Air New Zealand is trying to form an alliance with rival Virgin Blue - which owns Pacific Blue in New Zealand - for a code-share agreement covering the Tasman and domestic travel in Australia and New Zealand as part of a connecting journey.

The regulatory authorities will first decide whether the alliance helps or hinders competition and passengers but due to the competitive nature of the Tasman the alliance may get approved.

Travelling through air will be cheaper and the alliance would benefit travellers by producing more evenly spread flights through the day.

The alliance will help the New Zealanders to explore further afield into Australia and for people from different parts of Australia to get to New Zealand, rather than just the eastern seaboard.

Pricing is not the only challenge for airlines and it is about the choice of the customers. Right now Jetstar airline is working on getting the Tasman changed officially to a domestic route, which would make air travel more accessible and it would be beneficial for the economy also. But changing the transtasman to a domestic route would need a common border system between the two countries

Filling up seats is more profitable than leaving them empty and Jetstar drives a lot of revenue in activities including rental cars, hotels and insurance, while passengers can buy meals, in-flight entertainment and access to lounges, Buchanan says.