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Air New Zealand-United Airlines joint venture: 62% of NZ's long haul capacity operated under JVs

Analysis

Keep your friends close and your enemies closer: over recent years Air New Zealand has transformed its long haul network - and New Zealand's aviation market - by turning one competitor after another into a joint venture partner. Air NZ's latest is a revenue-sharing JV with United Airlines, to come into force on 01-Jul-2016 when United resumes New Zealand services.

The JV follows link-ups between Air NZ and Singapore Airlines, Cathay Pacific and Air China. Yet this is not just another JV: Air NZ-United will be the largest, accounting for 25% of Auckland's long haul seat capacity. It will be twice the size of the Air NZ-Singapore Airlines JV. In total, 80% of Air NZ's long haul capacity from NZ will be under JVs, with the balance in monopoly markets.

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