South Pacific aviation markets will be defined by China’s expansion

The nature of the South Pacific's geography makes finding the right partners for its airlines essential for their survival in international long haul markets - as most are.

The region is characterised by relatively liberal access regimes and by partnerships of varying levels - in New Zealand especially, where Air New Zealand's international network is dominated by JVs. Virgin Australia has built a 'virtual alliance' alongside HNA, Singapore Airlines, Etihad and Delta, with very little of its own metal flying outside Australia. At Qantas Group, international performance has improved markedly following its Emirates partnership, as its operating focus has shifted from Europe toward Asia and North America, with local JVs, and close partnerships with American Airlines and China Eastern continuing to grow and mature.

For all airlines in the region, the China market will define much of the growth over the coming decade. (This report is taken from the Jul/Aug-2016 issue of CAPA's Airline Leader)