United Airlines to fly from NZ, deepens partnership with Air NZ
Air New Zealand and United Airlines have come together in a partnership, with United announcing to fly Boeing 787 Dreamliners from Auckland to San Francisco from July. The move is taken as a challenge against the Qantas Airways and American Airlines trans-Pacific alliance.
At first, the new United flights will fly three times a week from the above-mentioned route before scheduling a daily flight with a larger 787-9 in November 2016. According to Stuff, air fares would decrease with Air NZ losing its monopoly to the United Airlines on flights from New Zealand to the mainland United States.
"They are a massive organisation and have massive sales and distribution, which is what we are wanting to access," Air New Zealand chief executive Christopher Luxon said while noting that United was the world’s largest airline.
The news comes as a strategic response to Qantas’ launch of Jetstar regional domestic flights in New Zealand in June. Air New Zealand was under more pressure after Qantas Airways announced to schedule new flights from Auckland to the Cook Islands.
After Australian carrier Qantas deepened its trans-Pacific alliance with American Airlines, Air NZ shares plunged reaching low levels. However, the latest strategic development would deepen alliance between the Air NZ and United, which could potentially pose a threat to American’s entry to into the Auckland-Los Angeles route.
Previously, the monopoly of the Air NZ over flights between Auckland and the mainland United States has helped it keep higher fares than U.S. and Australian carriers. Meanwhile, Air NZ, which is flying from Auckland to San Francisco, Los Angeles and Honolulu, would fly to Houston, Vancouver (Canada) and to Texas from December.
Cam Wallace, Air NZ chief sales and commercial officer, has said that the new alliance would also include revenue sharing either on the single Auckland-San Francisco route or on multiple routes. "We're working towards a deeper relationship," he said.
Wallace added about the three blocks emerging in the trans-Pacific market, which include the Qantas-American partnership, Virgin Australia's alliance with Delta Air Lines and the Air NZ-United alliance.
Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.
