Air NZ and Virgin announce details on Trans-Tasman proposal

[Steve Jones]

On the ASX website:

http://www.asx.com.au/asxpdf/20100503/pdf/31q449z2g28ylj.pdf

Air NZ have released an identical publication.

The proposal actually looks quite substantial.

[Michael Morrison]

I thought that was a merger?

Anyways, DJ/NZ would be about 50% of capacity. NZ/QF back then would have been a lot higher.

[Harry G]

this will put a shudder thru JQ/QF.......... DJ/NZ service levels are second to none in my opinion and fares on offer are always near the mark......
JQ/QF have played with this route for too long and again, in my opinion, subject to regulatory approval, the opposition and no doubt with "feed back" for Mr Borghetti has slippe dunder their guard....... another bounus for the Business traveller..........

[Adam G]

If my memory serves me well I thought QF and NZ tried to do this some time back and it was rejected by the ACCC...

As Michael said the merger was denied.

This is an agreement for an alliance on Trans Tasman routes only.

[Will T]

No Andrew's correct. Qantas and ANZ attempted a similar arrangement in April 2006, which they called the Tasman Networks Agreement (TNA). This was much more limited in scope than the full-blown alliance attempted several years ealier, but was also ultimately rejected by the ACCC.

[Steve Jones]

I think the real difference is that NZ+DJ is much smaller overall and thus a smaller competitive threat to the market than NZ+QF

Who knows what the ACCC and NZCC will say, but I think there is a much higher chance of success for this proposal. Even with the no doubt empassioned lobbying being done by the QF group in the halls of power (but who can blame them?).