Ditched

Stand by for Trans-Tasman fireworks later this year as Air New Zealand and Virgin Australia end their seven-year alliance. In reality the break-up isn’t much of a surprise but it will likely spark a new wave of intense competition on routes between the two countries.

In an interview earlier this year Air New Zealand chief executive Christopher Luxon told this writer that partnerships were a key plank in the carrier’s strategy. Pointing to serious connections with the likes of United Airlines, Singapore Airlines, Air China, Cathay Pacific Airways, All Nippon Airways, Aerolineas Argentinas and, of course, Virgin Australia, he declared they were “a really great set of JV (joint venture) partners for the markets we need to go to”.

Apparently, when it comes to Virgin, the wedding has suffered from the seven-year itch. When their JV, covering flights between Australia and New Zealand, expires in October the parties will not apply to renew it.