Virgin Blues hit Air NZ

Thread starter bammac
Start date Nov 12, 2006

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bammac

Intern

Nov 12, 2006

Article from Fairfax NZ Site www.stuff.co.nz:
http://www.stuff.co.nz/stuff/0,2106,3858425a13,00.html

Avoiding a deal with Branson's Oz airline could have been a big mistake, reports Gary Sheeran.

Air New Zealand may live to regret choosing Qantas ahead of Virgin Blue when it set out to strike a deal with another airline.

The Australian regulator's rejection of the code-share proposal 10 days ago came after five years of hard and expensive work by the two national air carriers to put such a deal together.

Industry estimates are that Air NZ will have spent at least $30 million in external professional fees alone in trying to get into bed with Qantas.

For Air NZ, that is equal to at least a year of losses on the contentious trans-Tasman routes.

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