Virgin Blue-Air New Zealand “cooperation”. A game-changer - perhaps

A combination of Virgin Blue and Air New Zealand has obvious symmetry. There has consequently been constant talk that some form of cooperation was about to occur. Virgin Blue is a genuine LCC which has evolved to full service airline; Air new Zealand is a full service flag carrier become low cost. So Virgin Blue's terse announcement today that it has been conducting "discussions with Air New Zealand over several months regarding commercial co-operation on Trans Tasman markets" - to satisfy stock exchange requirements, following a spate of recent rumours - is not surprising. It will however be enough to get their mutual major competitor, Qantas/Jetstar, greatly concerned.