Battle for Air Supremacy on Key Australian Route Heats Up
Photo Credit: 787-9 ANZ #169-ZB003 Air New Zealand
Skift Take
As the Air New Zealand-Virgin Australia alliance on services across the Tasman Sea comes to an end, Virgin will not take the snub from its Kiwi counterpart lying down. It is already flagging improved services and better frequent flyer rewards and trying to block rival Qantas from working with its former ally.
The battle for air supremacy on Australia’s busiest route is intensifying after a dramatic shake-up of Australia-New Zealand alliances.
At stake is over 17 percent of the total international air market out of Australia, with the New Zealand service attracting more than 7 million passengers in the year to May 2018 – up from 6.8 million in the same period two years ago.
The turning point was the shock April divorce between Air New Zealand and Virgin Australia after seven years of partnership.
At the time, Air New Zealand Chief Revenue Officer Cam Wallace said “the time is now right for each airline to focus on its own objectives.”
The alliance officially ends in October and the subsequent Trans-Tasman game of musical chairs has seen Virgin as the likely loser, with Air New Zealand aligning itself with Qantas in a codeshare deal.
At the moment, the market is finely balanced. In May, Air New Z
