New Zealand finally approved the partnership of Qantas with Emirates, opening the way to increase competition on the Australian-New Zealand routes.
WELLINGTON- Competition on trans-Tasman flights is expected to heat up after the New Zealand government Wednesday approved a partnership between Australian national carrier Qantas and the Dubai-based Emirates airline.
New Zealand Transport Minister Gerry Brownlee said he had authorized a master coordination agreement between the two carriers, allowing shared services on routes between Australia and New Zealand.
Qantas and Emirates would be able to cooperate on passenger and cargo transport operations and other related services for an initial period of five years, Brownlee said in a statement.
“Exporters and travelers will benefit from strengthened connections with Emirates’ international network, including 30 points in Europe, as well as the growing Middle East region and Africa,” said Brownlee.
The partnership also allowed Emirates to offer South Island mountain resort Queenstown and Wellington as tourism destinations on its network.
“Trans-Tasman competition will be maintained through existing carriers on the route and the threat of entry by new carriers.”
The Australian Competition and Consumer Commission had already approved the partnership subject to the airlines maintaining their pre-alliance aggregate capacity.
“Competition between strong home carriers is important for the Australian aviation market, and this alliance will ensure competition is retained, while opening the door to additional benefits for New Zealand,” Brownlee said.
The alliance would result in a consolidation of operators on trans-Tasman routes, with competition coming from Air New Zealand and Virgin Australia, which currently operate under an alliance.
(Source: Xinhua)
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
