Air NZ Partners with Virgin Blue

Air New Zealand (ASX:AIZ) solidifies its trans-Tasman partnership with Virgin Blue airlines with a push to sell the trans-Tasman product starting July 1, said Air NZ general manager Cam Wallace.

Wallace said that the alliance aims to improve schedule co-ordination and to set up regional tourism in the aftermath of the weather disruptions in Queensland and the Christchurch earthquake. Already a master at online marketing, Air NZ still aims to strengthen its Australian brand presence, according to Wallace.

"I would say our presence over here has been relatively passive, so we've had frequency network and capacity but we haven't been overtly in the market," Wallace said. "So we want to change some of that."

Higher fuel prices and inclement weather have negatively affected the Trans-Tasman push, but Wallace is resolute about the partnership. "What we're trying to do is bed down the alliance with the network that we currently fly,” he said.

The Air NZ and Virgin Blue union could also result in new Air NZ ports in Australia over a period of time. Although it was too early for the effect of fare increase on trans-Tasman demand to be measured, Wallace said they expected a certain market impact.