Air New Zealand to revenue share with United in NZ-US routes

Friday 11th March 2016

Air New Zealand will deepen its tie-up with United Airlines with a revenue-sharing arrangement on New Zealand-US routes.

The agreement will come into effect from July 1 when United launches its San Francisco-Auckland route and will see the carriers promote and sell each others' services between New Zealand and the US, Air New Zealand said in a statement. The airlines currently codeshare on United's network in the US and to international destinations, and Air New Zealand's network across the Pacific.

Air New Zealand chief executive Chris Luxon said the airline will benefit from the deal without being specific.

"To have a strong home market carrier like United Airlines working with us to grow this market through its extensive sales and distribution channels in the US will provide a significant boost to inbound tourism," Luxon said. "The United States is New Zealand's third largest tourism source market, contributing almost a billion dollars to our economy in the past financial year."

Trans-Pacific traffic has become more crowded in the past year as cheap oil creates a stronger economic case for more marginal routes with Qantas Airways and American Airlines entering the fray.

Air New Zealand shares last traded at $2.835 and have declined 4.1 percent so far this year.

BusinessDesk.co.nz

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