Air New Zealand responds to ACCC decision on Virgin Australia alliance

Air New Zealand welcomes the ACCC’s draft determination to reauthorise the Air New Zealand and Virgin Australia trans-Tasman alliance for three years.

Air New Zealand will now engage with the ACCC as it considers submissions before finalising its decision over the coming weeks.

The airline considers that in the current market structure, capacity conditions are not necessary to maintain strong competition in the trans-Tasman market and will work with the ACCC to understand its rationale for requiring such conditions and the limited three year authorisation period.

In the two years since the alliance became operational it has delivered benefits to tourism and business in the form of more flight capacity, more frequency, new routes, better scheduling and service quality while maintaining competitive pricing.

The alliance is also subject to approval from the New Zealand Ministry of Transport. Air New Zealand and Virgin Australia will continue to work with Ministry officials as they consider the application for re-authorisation. A decision is expected in a similar time frame.