Air NZ codeshare with Air India beats Delhi landing restrictions

Tuesday 9th June 2015

Air New Zealand will increase its ability to land passengers from New Zealand in the Indian capital, New Delhi, following the announcement of a new codesharing agreement between the national carrier and Air India.

Improved air links have long been a priority for advocates of stronger business and trade links between the two countries, which are in the early stages of negotiating a free trade agreement.

An existing codeshare arrangement with Singapore Airlines and Air NZ allows connections to Indian destinations through direct flights from Auckland and Christchurch to Singapore and onwards to India, but Indian authorities are understood to have been slow to open up additional landing rights for SIA to the India's capital city. By codesharing with Air India, which flies to Delhi from Sydney and Melbourne, Air NZ will be able to circumvent the current bottleneck.

In a statement to BusinessDesk, Air NZ said: "In addition to the Singapore alliance, which offers unparalleled connectivity to a range of South East Asia ports, Air India’s connectivity through multiple gateways, particularly through its Sydney and Melbourne to New Delhi services, offer customers further choice to best suit their travel needs."

Air NZ, Air India and SIA are all members of the Star Alliance network and the new Air India codeshare will provide additional access to a range of Indian cities. An air services agreement (ASA) between India and New Zealand in 2006, updated in 2008, allows for direct flights between Auckland and India's largest commercial centre of Mumbai, but no such service has started, according to the Ministry of Foreign Affairs and Trade website.

In March, Transport Minister Simon Bridges said at an India-New Zealand investment summit in Auckland that he hoped to negotiate a fresh ASA with India.

Today's codeshare agreement was signed at the International Air Transport Association annual meeting in Miami by Air NZ chief executive Christopher Luxon and Air India chairman and managing director Rohit Nandan.

“The sheer size of India and its growing middle class make it an aviation force that will positively impact international traffic flows," Luxon said in a statement. "Close to 90,000 people currently travel between India and New Zealand every year and this number is growing.”

Air NZ shares fell 1.1 percent to $2.83, and have gained 16 percent this year. The stock is rated an average 'hold' based on six analyst recommendations compiled by Reuters, with a mean target price of $2.93.

BusinessDesk.co.nz

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