Air New Zealand and Virgin Australia are set to end their seven-year-long trans-Tasman alliance in October.
The termination will impact the strategic alliance launched by the airlines at the end of 2010 to partner on various services between New Zealand and Australia.
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Both carriers decided not to renew their existing regulatory approval for the alliance, which expires on 28 October.
According to Air New Zealand chief revenue officer Cam Wallace, the decision has been driven by changing market dynamics on the Tasman.
Wallace said: “Australia is the largest source of inbound visitors to New Zealand and Air New Zealand has built up a significant presence in this market.
“This move will enable us to deliver a more consistent customer experience by using our own fleet and delivering an improved schedule, which we’ll provide more details about shortly.
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By GlobalData“We remain fully committed to our other alliance relationships and our overall global airline alliance strategy as a critical success factor in other markets.”
Wallace further added that it is the right time now for each airline to focus on its own objectives.
Passengers travelling before the end of the existing trans-Tasman alliance will not be affected by the new decision.
As part of the current partnership, the carriers synchronise their route network, flight schedules and pricing, reported Reuters.
Following the termination of the alliance, Virgin Australia may operate its low-cost unit Tigerair Australia on routes between Australia and New Zealand for the first time.
