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Virgin Blue Airlines Group and Air New Zealand


The proposed alliance will connect regional centres in Australia and New Zealand but only as part of a Tasman journey and does not include domestic-only travel in either Australia or New Zealand. The agreement is also not a signal of intention by Air New Zealand or Virgin Blue to take a shareholding in the other.


“We are two of the world’s most innovative and nimble airlines and by working closer together we believe we can deliver significant benefits to customers and shareholders,” Mr Fyfe said.


“Our alliance is about working closely together to give customers cheaper fares, increased frequency and better connections, while delivering improved returns,” he said.


“Simple moves like integrating schedules and capacity, allowing customers to book multi-sector journeys on one code, providing reciprocal loyalty scheme benefits and reciprocal lounge access for qualifying customers will be a compelling proposition for leisure and business travellers on both sides of the Tasman.”


Mr Fyfe said that the number of seats flown on the Tasman by the alliance carriers would grow more quickly than they would without the alliance.


“By combining our New Zealand customer base with the strong market presence that Virgin Blue has in Australia, additional flights and new routes will make sense much more quickly.


Also, the ability to offer Air New Zealand codeshare flights to domestic destinations in Australia, and Virgin Blue codeshare flights to regional destinations in New Zealand as part of connecting Tasman journeys will be a great benefit to our frequent flyers and a boost for tourism in both countries,” Mr Fyfe said.


The proposed agreement will have four key components:


1.A broad free-sale code share arrangement covering:


·All Tasman sectors currently operated by either airline


·Domestic Australian sectors as part of a connecting Tasman journey


·Domestic New Zealand sectors as part of a connecting Tasman journey


(Note: A broad free-sale code share arrangement involves both airlines selling tickets for each other’s flights under its own airline code.)


2.A revenue allocation agreement under which:


·Revenue generated across all Tasman sectors currently operated by either airline, or which may be developed under the agreement, will be allocated between the two carriers, and;


·A joint trans-Tasman Network Planning & Revenue Management Team representing both airlines will oversee the Tasman operation


3.A frequent flyer co-operation agreement that will provide reciprocal loyalty scheme benefits to members of Air New Zealand’s Airpoints loyalty programme and Virgin Blue’s Velocity Rewards programme.


4.A lounge co-operation agreement that will ensure lounge access to qualifying guests of either airline.


About Air New Zealand


Air New Zealand is recognised as one of the world’s leading airlines and has been named 2010 Airline of the Year in the prestigious Air Transport World magazine awards. Air New Zealand delivers uniquely Kiwi journeys to more than 12 million passengers who fly to, from and within New Zealand each year. The airline operates more than 4000 flights each week, connecting customers to 26 destinations within New Zealand and to Australia, the Pacific Islands, China, Japan, Canada, USA and the United Kingdom.


Recent Air New Zealand innovations have included the revolutionary new economy Skycouch as part of a new long haul experience from November, the end of the check-in queue for domestic passengers thanks to a range of new technologies, the world’s first in-flight International Airline Concierge service and a $50 million investment in seatback on-demand in-flight entertainment on A320 and 767 aircraft.


About Virgin Blue Airlines Group


The Australian-based Virgin Blue Airline's Group includes Virgin Blue, second largest domestic carrier in Australia and short haul international airlines Pacific Blue and joint venture with the Samoan Government, Polynesian Blue*. Together they operate a fleet comprising of 86 modern Boeing 737-NG’s, Boeing 777 and Embraer E-Jet aircraft flying to 31 Australian and 16 international destinations in the South Pacific and Southeast Asia. It also includes V Australia, the three class boutique style airline offering the acclaimed service for which the Virgin Blue Group is renowned and a unique Australian style.


*Polynesian Blue is not included in the alliance.