Air New Zealand will end its strategic alliance with Virgin Australia in October 2018, with the Kiwi carrier citing a change in market dynamics as the reason.
Air New Zealand and Virgin Australia have co-operated on services between New Zealand and Australia since 2010.
Air New Zealand chief revenue officer Cam Wallace says Australia is the largest source of inbound visitors to New Zealand, and Air New Zealand now has a significant market presence.
‘This move will enable us to deliver a more consistent customer experience by using our own fleet and delivering an improved schedule,’ he said.
Virgin Australia said the change will not have any immediate effect on travel bookings, with both airlines to work through arrangements on codesharing, flight schedules, frequent flyer points and other affected areas.
Virgin Australia managing director John Borghetti said the end of the alliance will provide opportunities for Virgin Australia and its discount Tigerair brand on the trans-Tasman route.