Virgin Australia Holdings Limited (ASX:VAH) today welcomed the New Zealand Minister of Transport's decision to re-authorise the airline's trans-Tasman alliance with Air New Zealand (NZX:AIR / ASX: AIZ) until 31 October 2018.
Virgin Australia General Counsel Adam Thatcher said: "We welcome today's decision by the New Zealand Minister of Transport as it will enable us to continue to bring substantial benefits to consumers, tourism and business across the Tasman.
"We look forward to working together with Air New Zealand to enhance our alliance even further, offering competitive airfares, choice and a seamless travel experience for customers", Mr Thatcher said.
In reauthorising the alliance, the Minister has not sought to impose any additional conditions to the approval recently granted by the Australian Competition and Consumer Commission (ACCC).
The re-authorisation of the alliance until 31 October 2018 coincides with the expiry of the ACCC's authorisation in Australia.
The trans-Tasman alliance, which has operated since July 2011, has four key components:
- A broad free-sale code share arrangement covering all Tasman sectors and domestic Australian and New Zealand sectors as part of a connecting journey;
- A revenue share agreement;
- Reciprocal loyalty scheme benefits to members of Air New Zealand's AirpointsTM loyalty programme and Virgin Australia's Velocity Rewards programme; and
- Reciprocal lounge access to qualifying guests of either airline.
The re-authorisation of the alliance by the New Zealand Minister of Transport is the last condition required.
