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Air New Zealand-Cathay Pacific partnership has implications across Asia and for SIA & China Southern

Analysis

Air New Zealand's securing of a rare partnership from highly independent Cathay Pacific touches on much more than the niche Hong Kong-New Zealand market. There are far broader implications for networks and global alliances.

Asian carriers have usually taken a quite distinctive approach to global alliance participation and operation than their European peers. Indeed, Cathay and Singapore Airlines (SIA) take some of the largest hands-off approaches to alliances and, when it comes to partnering, can be deeply conservative. While this may have worked in the slow days of last decade, there is new competition and, as the Gulf carriers disturb the old equilibrium, it can be a scary world for long-haul carriers to confront alone.

Singapore Airlines is signalling a shift with baby steps for alliances, while the outlook at Cathay remains essentially solitary. This deal was heavy on influence from ANZ, which had struggled to serve the Chinese market effectively while also contending with a rising China Southern as a formidable force, a carrier competing with Cathay as well. And ANZ previously received little love from Star partner SIA, also a staunch Cathay competitor.

The outcome is a very tidy deal for Cathay and ANZ, but one that will undoubtedly spark ramifications - and see the emergence of Hong Kong Airlines as a viable partner.

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