New alliance forged

Air New Zealand and Singapore Airlines have forged a deep alliance which will open up the latter’s extensive network throughout Asia to Air New Zealand passengers.

The agreement calls for New Zealand to resume its Auckland-Singapore route, abandoned in 2006, and for Singapore Airlines to operate the Airbus A380 to New Zealand for the first time.

The Singapore Airlines’ A380 service and the Air New Zealand 777-200ER service would be daily increasing capacity of the route by 30 per cent. Currently Singapore Airlines operates a five times weekly 777-300ER service on the route.

Singapore Airlines’ daily Singapore-Christchurch service would continue as part of the alliance.

The proposed alliance would enable Air New Zealand passengers to access code share travel on the Singapore Airlines network to South East Asia, the United Kingdom and Europe and Africa as well as on the network of its regional subsidiary airline, Silk Air. Singapore Airlines’ customers would be able to access code share travel across the Air New Zealand domestic network and to selected international destinations.

The alliance comes over 12 years since the two airlines split up over the collapse of Ansett, when  Singapore Airlines was a shareholder of Air New Zealand.

However, times have changed and so has the management of both airlines as well as the shareholding of Air New Zealand.

Air New Zealand Chief Executive Officer Christopher Luxon said: “Air New Zealand is on a positive growth trajectory with a clear focus on Pacific Rim destinations. An alliance with Singapore Airlines clearly fits our business objectives of working with the right partners in the right markets to deliver seamless customer journeys.”

Singapore Airlines Chief Executive Officer Goh Choon Phong added, “This alliance is another example of our commitment to the important Southwest Pacific market, and our commitment to the further enhancement of our network. This is a genuine win-win partnership, enabling Singapore Airlines and Air New Zealand to work together to provide more flight frequency and enhanced travel options to our customers.”

The parties are seeking approval for the alliance from the Competition Commission of Singapore and the New Zealand Minister of Transport.  Pending approval, flights could commence as early as December 2014.

The alliance is significant as it increases the pressure around embattled Qantas and cements Singapore Airlines as a major player in the New Zealand tourist market.