Air New Zealand and Virgin Blue promised in a revised submission to the Australian Competition and Consumer Commission (ACCC) they would not increase fares or reduce overall capacity if their proposed trans-Tasman alliance is approved (The Age/BusinessDay.co.nz, 19-Oct-2010). The carriers also stated they are willing to promise to maintain or increase frequencies on the route. Air New Zealand and Virgin plan to increase capacity on six routes by 10% in the next three years and 15% by the fifth year of the alliance. The routes include three from Wellington to Sydney, Melbourne and Brisbane as well as Auckland-Brisbane, Dunedin-Brisbane and Queenstown-Sydney. The carriers also plan to increase frequencies on services from Wellington to Melbourne and Sydney and Auckland to Adelaide, Perth, Sydney and Coolangatta. Wellington International Airport CEO, Steven Fitzgerald, stated the capacity commitments address the airport’s key concerns and it is no longer opposed to the alliance. The ACCC is to make a final decision on the deal by 20-Dec-2010. The NZ Ministry of Transport is yet to state its position on the proposed alliance.
Air New Zealand and Virgin Blue promise to keep fares low and retain capacity
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AirAsia X Part 2: LCC's Australian expansion could include Brisbane, Canberra, Nth Queensland
Malaysia’s AirAsia X is considering the launch of services to several new gateways in Australia. Adelaide, Brisbane, Cairns, Canberra and Townsville are all under consideration as the medium/long haul low cost group resumes expansion.
AirAsia X is also considering launching nonstop flights from Kuala Lumpur to Auckland. The airline launched services to Auckland via the Gold Coast in Mar-2016 and the route has so far exceeded its expectations, prompting it to consider a nonstop product for Auckland and one-stop services to secondary destinations in New Zealand.
This is the second in a series of analysis reports on AirAsia X. The first report looked at the resumption of capacity expansion in the Australia-Malaysia market in 2016 with additional flights to existing markets. This report focuses on possible new destinations in Australia for 2017, and potential growth in New Zealand.
AirAsia X Part 1: Australia-Malaysia expansion resumes, while competitor Malaysia Airlines steadies
AirAsia X is resuming expansion in the Australia-Malaysia market, offsetting cuts which were implemented in early 2015 as part of a restructuring. The long haul low cost airline will operate 56 weekly flights between Australia and Malaysia in late 2016, matching its previous high of 56 weekly flights in late 2014.
AirAsia X is now looking at further expanding its network in Australia with several potential new destinations. Additional capacity to its four existing destinations – Gold Coast, Melbourne, Perth and Sydney – is also under consideration.
Cuts at Malaysia Airlines have opened up a potential opportunity for AirAsia X to add more capacity to Australia’s four primary cities – where Malaysia Airlines has relinquished traffic rights. AirAsia X has already added capacity from Jul-2016 to the Gold Coast, where there are no bilateral restrictions, and is adding three seasonal weekly frequencies to Melbourne from early Dec-2016.