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Jun13
Air New Zealand and Qantas Working On Intra-Country Code Share

The only problem I have with this possible code sharing between ANZ and Qantas is that the services are different between the companies.  If I bought a ticket on ANZ's website, would I receive the services that I paid for if I board a Qantas plane, and the other way around too. 

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DSC02218.JPG.33884.jpg.thumb.jpgAir New Zealand says it may be forced to cut flights to Australia if its code-sharing proposal with Qantas is rejected.

Chief executive Rob Fyfe also rejected claims trans-Tasman air fares would rise if the deal went ahead.

Air New Zealand and Qantas have proposed selling seats on each other's flights between the two countries after a more comprehensive tie-up was rejected by competition bodies.

Mr Fyfe said he expected the Australian Competition and Consumer Commission (ACCC) to release a draft finding on the code-sharing deal by July or August.

"We believe code share is the best way to address the losses we've been making in that market," Mr Fyfe said in Christchurch.  "I can assure you we're not going to keep losing money on those routes indefinitely."

Without naming destinations, he said Air New Zealand would consider culling underperforming international routes if they didn't pay their way.

"You've got to make sure you get the loads in your aircraft, you've got the yield or you have to take a really hard look and that's what we're doing."

Mr Fyfe said without code sharing, capacity would have to be reduced across Tasman, citing Qantas last week cutting one of its daily Auckland-Sydney flights.

The chief executive also revealed the airline was examining the prospects of another crippling 50-per-cent rise in the cost of fuel.

"We're currently doing scenario planning around fuel at $US120-130 a barrel because we see very little respite."

The Australian

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