Air NZ and Virgin
May 4th, 2010 at 12:00 pm by David FarrarStuff reports:
Air New Zealand chief executive Rob Fyfe has warned that Jetstar and Qantas could soon dominate the trans-Tasman market if Air New Zealand’s new alliance with Virgin Blue is rejected by competition authorities.
I love Air New Zealand and think they are a great airline, but I do wish they would spend less time trying to reduce competition on the trans-Tasman routes.
This must be the third or fourth time I’ve heard they cry that Air New Zealand is doomed unless it does a deal on the trans-Tasman route, and regulators turn them down, and what do you know they continue to be very profitable.
Average airfares across the Tasman could fall between 10 per cent and 20 per cent as a result of the planned alliance Mr Fyfe said.
Yes, reducing competition of course leads to cheaper airfares. Not.
Mr Fyfe said unlike Air NZ’s attempted tie-up with Qantas, which would leave one player with three-quarters of the market, a deal with Virgin would create a player with around 56 per cent share.
And this is not so bad, as the proposed Qantas deal. However I prefer three way competition, rather than a duopoly.
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May 4th, 2010 at 12:10 pm
Hear hear.
Now if only we had some more competition on domestic flights – especially to provincial centres.
If the Govt had spent 5% of what they spent bailing out Air NZ on bailing out Origin Pacific we would all have been better off.
Vote:May 4th, 2010 at 12:17 pm
It will be a bit of a nasty surprise for anyone who books on Air NZ and ends up on a Pacific Blue aircraft, though with the latest Pizza Hut changes to the Tasman product Air NZ is going the way of Pacific Blue anyway. However, to be fair to Air New Zealand, their yields on the Tasman are shocking and I wouldn’t be surprised if it was running at a loss. Especially with the airfares that have been coming out on this market, it is not a high yielding route.
Vote:May 4th, 2010 at 12:20 pm
Uncompentency – I agree. If I book on an air new zealand flight and end up stuffed into a PB plane I will not be impressed. Particularly if I am made to pass toilet rolls down the aisle as “entertainment” and forced to pay for a television set.
Vote:May 4th, 2010 at 12:26 pm
Air New Zealand chief executive Rob Fyfe has warned that Jetstar and Qantas could soon dominate the trans-Tasman market IF AIR NEW ZEALAND DOES NOT SHARPEN UP THE PENCIL ON ITS OWN PRICING.
There Rob, fixed that for you!
Vote:May 4th, 2010 at 12:37 pm
Why would Virgin want to team up with those losers at ANZ??
Vote:May 4th, 2010 at 12:43 pm
they dont make much on the tasman route.. might even be a loss.
Vote:May 4th, 2010 at 12:43 pm
^^^They want to join in the global socialist conspiracy, red.
Vote:May 4th, 2010 at 1:20 pm
” Virgin NZ ” goes well with our clean green NZ image.. great marketing ploy.
not that any of it is true.. NZ being Vergins or that NZ is Clean and Green.
Vote:May 4th, 2010 at 1:38 pm
Air NZ and Pac Blue should stop dreaming.
The Australian regulator will not permit it.
It is UnAustralian to challenge Qantas in any way in Australia.
Dream on.
Vote:May 4th, 2010 at 3:07 pm
V-Jet?
Vote:Tiger Airlines?
May 4th, 2010 at 5:02 pm
The fox guarding the hen house isn’t it? Air NZ asking its owner, the government, for special treatment.
No thanks, Air NZ, how about, you know, competing?
Vote:May 4th, 2010 at 5:04 pm
If the Govt had spent 5% of what they spent bailing out Air NZ on bailing out Origin Pacific we would all have been better off.
Well if the government would stop bailing anybody out, let anybody who meets safety regs come in, then we would have a) real competition, and b) competent airlines replacing incompetent airlines.
Instead we have Air NZ and rats and mice.
Vote:May 4th, 2010 at 5:22 pm
fuck air new zealand Id rather walk to aus than fly with these munters ..they have had it too easy for too long. They were all set to join up with Qantas and screw the traveller..but the commerce commission saw right thru it.
I always fly Emirates ex chc to syd..generally 2/3rds the price of an air NZ fare and you get full service…awesome food and plenty of grog , not to mention the stunning hosties…with airNZ ya lucky to get a bag of crisps and a small water served up by an ageing spinster with a bad attitude.
Look for Air Asia heading our way soon and watch the freckles pucker at our national carrier.
Vote:May 4th, 2010 at 9:03 pm
Everybody prefers a three way David. Pity it has been the Govt owned Air NZ fucking everybody for so many years.
Vote:The more competition the better – and also, SELL Air NZ FFS!!
May 5th, 2010 at 12:53 am
If we want to look backward, had Labour simply allowed Singapore Airlines to buy AirNZ/Ansett, then Air NZ would not be state owned, would have a strong presence in the Australian domestic market (and corporate market as a part of that) feeding its network, and Virgin Blue would have been a two-bit player.
However no, Dr Cullen and Helen Clark were suspicious of that airline from a foreign culture buying the “national carrier”, so it was nationalised. Ansett collapsed, Virgin Blue got handed a good part of the Aussie market to compete with Qantas and the rest is history.
Given the scale of airline mergers and acquisitions worldwide, it makes perfect sense for Air NZ and Virgin Blue to rationalise Tasman operations. Emirates is the significant third player (not in Wellington, but the Wellington market is small), with a couple of others from Auckland. Then, no doubt, Pacific Blue will exit domestic ops in NZ, and Air NZ will prefer feeding Virgin Blue in Australia over Qantas.
Competition authorities should not hold this up at all, with Qantas/Jetstar having such a strong presence. Although if Air NZ had a strong private owner it would be better off buying Virgin Blue/Pacific Blue, as it can only seriously grow in this part of the world if it can tap a good part of the Australian domestic market.
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