Air New Zealand to Expand Virgin Partnership

Air New Zealand said it is considering the extension of its alliance with Virgin Australia on trans-Tasman that would include the Pacific Islands. The two are set to reapply for the continuation of the partnership.

Air New Zealand chief executive Christopher Luxon said the airline is on its “growth mode” with the company posting a solid performance in the first half of 2012. Luxon added that the extended alliance could improve their Pacific Island businesses.

The chief executive said that while no plans have been concretized, these are items that are being discussed.

Extending the alliance would require the two companies to seek approval both from New Zealand and Australian regulators. Three years ago, the two airlines initially considered partnering for the Pacific Islands but later backed out because of difficult regulatory challenges.

Luxon said that he remains optimistic with the alliance on the trans-Tasman route. He added that both companies are excited over the opportunities that may come in.