THE CLOSER ALLIANCE BETWEEN AIR NEW ZEALAND AND VIGIN BLUE IS BEING DESCRIBED AS A GOOD MOVE FOR CONSUMERS

A trans-Tasman alliance between Air New Zealand and Virgin Blue is being called a win for consumers. The approval for the national carrier and Virgin Blue will apply for three years, allowing the airlines to coordinate pricing, revenue management, schedules, capacity and routes. The Australian Competition and Consumer Commission had earlier said it planned to reject the proposal on the grounds that it would hurt consumers, but today claimed it changed its mind following “substantial” information from the airlines and other interested parties. Air New Zealand chief executive Rob Fyfe has welcomed the news, and shares in the company were