Virgin Australia and Air NZ to Form New Partnership

[HS-TQE]

In a hypothetical situation, NZ's chance of getting any "high yield" VA customers on US via AKL would be very low to none, considering the UA/VA partnership.

Most of the high yield VA / VFF passengers would prefer to go non-stop, benefitting UA more.

However, getting VA's Low Yield/loss making Sales fare customers to fill up ex-AKL would add very minimal income for NZ long haul. I'm NZ would prefer high yield (& paying) ex-AKL filling up the expensive seats rather than FF redemptions from partners or those on sale fares.

 

[AustraliaPoochie]

Tho, from what I take it as, according to what I have read, this "agreement" is only for Au - NZ, so does not extend to the (Air)NZ flights, carrying a VA code as far as the US/Canada/Japan.
---
Who knows, if this comes to fruition, it might be an open door to something more substantial later on.

 

[henrus]

Given I've just dropped from Gold to Silver on Air NZ (but still maintain gold on VA) I'll be happy if the former FF benefits like the old partnership come back.

I guess we'll see one the details come out but I wonder if it'll mean you need to book a VA flight number to get benefits.

 

[justinbrett]

Tho, from what I take it as, according to what I have read, this "agreement" is only for Au - NZ, so does not extend to the (Air)NZ flights, carrying a VA code as far as the US/Canada/Japan.
---
Who knows, if this comes to fruition, it might be an open door to something more substantial later on.

Agree, and considering it's unilateral (NZ isn't going to use VA at all under this deal), it almost guarantees a continuation of the NZ/QF deal.

NZ has nothing to gain by switching to VA for Aus domestic connections (considering they're already getting their side of any potential deal); whereas terminating the QF deal at best costs them some domestic pax, at worst encourages QF group to ramp up NZ domestic and take more of the pie.

NZ has a near monopoly on NZ domestic (~80%), why put that at risk.

 

[AustraliaPoochie]

In fact, if you look at it, only DRW has no AirNZ services.
All other major Aust airports, AirNZ already services, either all days of the week, some more than once a day, some like ADL only 3 days a week with a narrow body.
Only time will tell, what "pans out".
Also, VAd has pulled out of the small towns they used to fly to (with their prop planes), except their link now with LINK .

 

[aaronm]

As others have mentioned, it'd be a practical way to 'fix' VA's lack of international lounge access, at least on NZ routes. Koru lounge access in NZ would be a nice bonus as well.

If this goes through the stars are aligning for a future alliance... pun intended.

 

[Mwenenzi]

NZ Govt link (from a post in FT)
--> Ngā tuhinga me ngā whakaputanga | Documents and publications

https://www.transport.govt.nz/documents-and-publications/download/7424

Submissions open on Air New Zealand-Virgin Australia application for proposed partnership

Air New Zealand and Virgin Australia have lodged an application seeking authorisation to give effect to a Commercial Framework Agreement, Codeshare Agreement, and various related agreements.
We are now inviting submissions from interested parties.
Submissions will be published on the Ministry of Transport website. Please indicate if there is any information in your submission that you consider should be withheld in accordance with the Official Information Act 1982.
Submissions should be emailed to [email protected] by 5 pm on Thursday 1 February 2024.

 

[aaa99]

NZ Govt link (from a post in FT)
--> Ngā tuhinga me ngā whakaputanga | Documents and publications

https://www.transport.govt.nz/documents-and-publications/download/7424

Very interesting read. The Trans-tasman market share charts are really cool to look at.

 

[Mwenenzi]

Very interesting read. The Trans-tasman market share charts are really cool to look at.

Will be historical data (Jan - June 2023)
EK has 1 flight a day SYD CHC
LA has 1 flight a day SYD AKL
QR used to have 1 flight a day ADL AKL - that may be the 1%
A new route PER-AKL by Batik Air Asia from August 2023
VA is into ZQN. Pre CV19 VA1.0 used to fly into more NZ airports.
Over the years have been other non AU NZ airlines on the TT route. But most do not last the distance:- go for a few summer seasons, then drop out.

 

[jase05]

Will be historical data (Jan - June 2023)
EK has 1 flight a day SYD CHC
LA has 1 flight a day SYD AKL
QR used to have 1 flight a day ADL AKL - that may be the 1%
A new route PER-AKL by Batik Air Asia from August 2023
VA is into ZQN. Pre CV19 VA1.0 used to fly into more NZ airports.
Over the years have been other non AU NZ airlines on the TT route. But most do not last the distance:- go for a few summer seasons, then drop out.

CI BNE-AKL has been going for a while and whilst I don’t know what the numbers are like we have flown this route with them in the past and it seemed decent loads

 

[Mwenenzi]

CI BNE-AKL has been going for a while and whilst I don’t know what the numbers are like we have flown this route with them in the past and it seemed decent loads

CI used to fly MEL-CHC, but sadly no longer. For me was the best schedule and an acceptable price (but nil ff miles earned)

 

[AustraliaPoochie]

Saw the wordings, "a one way agreement"!
Ie, (Air)NZ to carry the NZ flight code, ie, VA2***/3***/4***/5*** or something like that.
Which will be good for a wide body flight across, and earn some VFF points and VFF SC, but still...
And the word "code share", so not a full liaison, not like before.
So its still a half hearted agreement.

 

[HS-TQE]

Saw the wordings, "a one way agreement"!
Ie, (Air)NZ to carry the NZ flight code, ie, VA2***/3***/4***/5*** or something like that.
Which will be good for a wide body flight across, and earn some VFF points and VFF SC, but still...
And the word "code share", so not a full liaison, not like before.
So its still a half hearted agreement.

The proposed unilateral codeshare was never meant to replicate the old JV. Considering QF/NZ still has their domestic codeshare partnership to run until NW24/25 at the earliest.

As VA operates on the Tasman (although a minor player to ZQN) this is subject to the regulatory approvals on both ends. Widely tipped that both regulators will just wave it through in February 2024 at the earliest unless if there's a strong argument to reject it, which I can't see happening.

 

[henrus]

So in that document they say that VA status holders will get access to Air NZ lounges on VA*NZ services, with no mention to other services it reads to me that one will need to book via VA to get lounge access. If the price is the same as Air NZ then no problem but if it’s a large difference then no point.

 

[bcworld]

So in that document they say that VA status holders will get access to Air NZ lounges on VA*NZ services, with no mention to other services it reads to me that one will need to book via VA to get lounge access. If the price is the same as Air NZ then no problem but if it’s a large difference then no point.

It depends how you interpret "VA*NZ". I don't read that as VA flight numbers...but just a shorthand way of describing the overall arrangement.

 

[justinbrett]

As VA operates on the Tasman (although a minor player to ZQN) this is subject to the regulatory approvals on both ends.

ZQN has been carved out of the agreement, so NZ and VA will compete on that route, you won't be able to book it as a codeshare. If VA adds any NZ destinations, these are also automatically carved out.

I don't really see why anyone would have an issue with it, effectively it's just VA operating as a travel agent for NZ and combining its products with theirs. Really doesn't effect QF or NZ in any way. Some might say it kills the incentive for VA to launch its own services, but I think there was none there to begin with.

It depends how you interpret "VA*NZ". I don't read that as VA flight numbers...but just a shorthand way of describing the overall arrangement.

Well it does specify access is only to international lounges, not domestic - so any NZ domestic bookings would have no access. I'm not sure NZ would encourage pax to book with VA by restricting access to VA codes (which they have to give a cut to), so expect it would be either NZ/VA codes but only on the TT routes.

It also says flights will only be sold ex AU - so no NZ-AU return, or NZ-AU oneway tickets.

 

[oz_mark]

It depends how you interpret "VA*NZ". I don't read that as VA flight numbers...but just a shorthand way of describing the overall arrangement.

The document specifically states its a codeshare agreement.

Virgin Australia proposes to enter into a unilateral codeshare agreement whereby it will market and resell under VA code trans-Tasman services operated by Air New Zealand (excluding Queenstown services) under VA code

 

[bcworld]

The document specifically states its a codeshare agreement.

I was referring to the suggestion, I think, that a VA Gold or Plat booking on an NZ flight number would not get lounge access on an applicable route e.g. MEL-AKL.

 

[SeatBackForward]

Can we make this happen in two weeks time? Lol going from Platinum on both QF/VA to nothing on NZ for a trip over there...

Well unsurprisingly, it didn't happen in two weeks..so my first NZ flight in the past 15yrs and I've checked in and been assigned the last row with no benefits at all. Despite being Platinum acorss QF and VA..

Anyhow, it'll be just like the good old Pre-AFF days and it's a short hop across the dutch.

 

[Mwenenzi]

Well unsurprisingly, it didn't happen in two weeks..so my first NZ flight in the past 15yrs and I've checked in and been assigned the last row with no benefits at all. Despite being Platinum acorss QF and VA..

With Air NZ you can pay $$ for seat selection.
See post 27

Submissions will be published on the Ministry of Transport website. Please indicate if there is any information in your submission that you consider should be withheld in accordance with the Official Information Act 1982.
Submissions should be emailed to [email protected] by 5 pm on Thursday 1 February 2024

Given the speed of the NZ govt bureaucracy would not be expecting a decision until mid 2024 (as best)