Virgin Australia and Air New Zealand’s trans-Tasman romance is set to be reignited following the final authorisation of a new codeshare agreement by Australian and New Zealand regulators.
Under the new agreement, Virgin Australia customers will again be able to directly book Air New Zealand flights into Auckland, Wellington, and Christchurch, complementing Virgin Australia’s Queenstown services from Brisbane.
Velocity members will also be able to earn and redeem Velocity Points, and eligible members and guests will have access to lounges when flying across the Tasman.
The proposal’s green-lighting follows the news in June that VA and NZ were a step closer to re-establishing formal ties after the Australian Competition and Consumer Commission (ACCC) said it would tentatively authorise their unilateral codesharing arrangements.
The final authorisation was subject to Air New Zealand agreeing to set the fares at which Virgin Australia can market and resell flights. Under the free sale codeshare agreement, Virgin Australia, as the marketing carrier, will be able to sell unlimited seats on Air New Zealand’s services, provided there is available inventory.
However, the authorisation will not affect routes where Virgin currently flies its planes – between Queenstown and Melbourne, Sydney and Brisbane – or where VA begins flying in competition with Air New Zealand.
Virgin Australia Chief Strategy and Transformation Officer Alistair Hartley said the long-awaited rebooting of a partnership that previously ended in 2018 would give Virgin Australia’s customers access to a comprehensive network between Australia and New Zealand.
“Australians share our love of New Zealand and its national carrier, and we can’t wait to reignite this partnership before the end of the year,” he said.
“The regulators’ endorsement reflects the strong consumer benefits the partnership will unlock, including greater value, choice and loyalty rewards for travellers across the Tasman.”
Air New Zealand Chief Transformation and Alliances Officer Mike Williams said the rekindled relationship would make it even easier for more Australians to make the short hop across the ditch, with customers enjoying a taste of New Zealand before they’ve even landed.
“We know our Aussie friends are a travel-hungry bunch, so whether it’s just a quick weekend trip to catch up with family or wanting to explore more of New Zealand, this partnership provides further options for more Australians to visit beautiful Aotearoa,” he said.
As part of the new agreement, Virgin Australia and Air New Zealand will also be able to offer businesses discounts and promotions for codeshared services.
Virgin Australia currently has non-reciprocal codeshare deals with various airlines, including Qatar Airways, United Airlines, Singapore Airlines, Hawaiian Airlines, All Nippon Airways, and Air Canada, through which it can sell tickets for flights operated by those carriers.
In March, Virgin Australia reported interim revenue of AU$2.8 billion in the six months before 31 December 2023, reflecting an uptick of $300 million compared to the same period last year and a solid start to 2024.
The new codeshare agreement will launch “before the end of the year,” with dates to be confirmed.
