Qantas, American Airlines tie-up on Auckland-US route pits oneworld against Star Alliance

Wednesday 11th November 2015

Qantas Airways and American Airlines, members of the oneworld airline alliance, have gained approval for a tie-up operating between Auckland and Los Angeles, competing with Star Alliance members Air New Zealand and United Airlines in routes between New Zealand and North America.

Transport Minister Simon Bridges has authorised an alliance between Qantas and American Airlines to create a new direct service between LA and Auckland starting in June 2016. The partnership will allow travellers to book a single ticket for connecting flights from New Zealand regional centres services by Qantas's Jetstar unit to dozens of North American destinations serviced by American Airlines and should result in lower fares, Bridges said.

Visitors to New Zealand from North America rose 10 percent to 288,992 in the 12 months ended Sept. 30, accounting for 9.5 percent of total visitors, government figures show.

“Given American Airlines’ extensive domestic network in the US, the alliance also means New Zealand will be a more attractive destination for Americans than ever before,” Bridges said.

Auckland International Airport, the country's largest gateway, estimates that the new American Airlines daily service will boost seat capacity between New Zealand and the United States by 16 percent, adding 165,000 seats per year and contributing $199 million annually to the New Zealand economy.

Air New Zealand shares fell 1.5 percent to $2.68. In April, the New Zealand carrier deepened its partnership with United Airlines for routes to the mainland US, allowing it to add Houston to a line-up of North American destinations including San Francisco, Los Angeles, Vancouver and Honolulu.

Air New Zealand provides data for passenger volumes for North America and the UK combined. So far this financial year, passenger numbers are up 6.6 percent to 253,000, or about 67 percent of total long-haul volumes. Passenger numbers rose 10.5 percent in the month of September.

Oneworld is an alliance of 15 airlines plus affiliates, while Star Alliance is a grouping of 28 airline members.

BusinessDesk.co.nz

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