Air NZ Rubbishes the Rumors of Virgin Blue Stake

Air NZ Rubbishes the Rumors of Virgin Blue StakeRecently, Sydney Morning Herald had reported that that Air New Zealand has got a share in Virgin Blue. However, on Friday the airlines rubbished any such claims. Virgin Blue is the second largest airline of Australia.

This morning Air New Zealand disclosed that no stakes have been bought in Virgin Blue and if it had to acquire the airlines, then it has to get sanction from Foreign Investment Review Board. Air New Zealand required the approval because the Government owns a considerable share in it.

However, the officials of New Zealand and Australia are thinking about an association between the airlines. According to the association, they will work together on the routes of the airways and market the seats on each other's flights.

Both the airlines want a nod from the Australian Competition and Consumer Commission for a partnership on the transtasman route.

The new association would be instrumental in providing a broad network for the Air New Zealand customers to travel inside Australia. The customers would cover the first part of the journey with Air New Zealand, while they will undertake the remaining flight on Virgin Blue.

The airlines are planning to amplify their joint productivity from business travelers.