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Air New Zealand reviews options for Latin America. Can new partner Singapore Airlines help?

Analysis

Air New Zealand is reviewing options for covering Latin America, which according to CEO Christopher Luxon remains the last white spot in the carrier's network after plugging all its other holes with its new Singapore Airlines (SIA) partnership.

The forthcoming withdrawal from the South Pacific market by Aerolineas Argentinas could leave an opening for Air NZ as oneworld partners Qantas and LAN will be left as the only carriers crossing the South Pacific between Australasia and South America. Air NZ's new partnership with SIA could be extended to Latin America, providing feed for a potential new route which would otherwise not be viable.

But the economics of Australasia-South America routes are challenging and Air NZ has not yet been able to find a suitable partner on the Latin American end. Air NZ has been eager for some time to exploit New Zealand's position between Asia and South America and connect an underserved and fast-growing market. Likewise, Auckland Airport has envisaged itself as a potential hub for the connections. There is still no easy solution for Air NZ.

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