Alliance with Air China
Aug 22, 2015, 1:25 am
#2
Join Date: May 2005
Location: Sydney, Australia
Programs: NZ*G ELT, VA-G
Posts: 3,595
I understand the CA alliance has not been approved. It's bad timing as CX alliance is also due to renew shortly. It will be a tough sell to the regulator if they want both alliances to be approved at the same time. Perhaps they are weighing what to tell the regulator.
The CX alliance seems to me has provided no public benefit.
The CX alliance seems to me has provided no public benefit.
Aug 23, 2015, 3:01 pm
#5
Join Date: May 2010
Posts: 1,497
The application to re-authorise the CX alliance has been in for quite a while now - the MOT website says to expect a decision in May 2015. I have been wondering if the delay in re-authorisation has been due to unhappiness at NZ's apparent strategy of competing by linking up with the competition.
Aug 24, 2015, 6:47 pm
#6
Join Date: Mar 2013
Location: New Zealand
Programs: NZ Elite, KQ Gold, Accor Gold, IHG Gold, Choice Gold
Posts: 675
Done.
Air NZ & Cathay Pacific alliance reauthorised
The extension of a strategic alliance between Air New Zealand and Cathay Pacific will result in more benefits to travellers than would otherwise have been the case, Transport Minister Simon Bridges says.
Mr Bridges has reauthorised the alliance for almost four years beyond its initial expiry date of 30 January 2016.
“This alliance has ensured the airlines work together on tourism and marketing initiatives so travellers can continue to benefit from more seats, improved flight schedules, shorter connection times, and reciprocal frequent flyer schemes,” he says.
Since the alliance was approved in 2012, visitor arrivals from Hong Kong to New Zealand have increased by more than 16 percent. Cathay Pacific recently announced it will operate an extra 13,500 seats on the Auckland-Hong Kong route in the 2015/16 peak summer period.
“While the alliance has given travellers to and from Asia more choice and flexibility than would otherwise have been the case, there is room for further improvement. My expectation is that Air New Zealand and Cathay Pacific will continue working to show the alliance is in the best interests of consumers.
“The aviation industry is firing on all cylinders, with low fuel prices and strong demand for international travel. The Government is monitoring the Hong Kong route to ensure airlines are responding to these favourable conditions when setting their fares and schedules,” Mr Bridges says.
The extension of a strategic alliance between Air New Zealand and Cathay Pacific will result in more benefits to travellers than would otherwise have been the case, Transport Minister Simon Bridges says.
Mr Bridges has reauthorised the alliance for almost four years beyond its initial expiry date of 30 January 2016.
“This alliance has ensured the airlines work together on tourism and marketing initiatives so travellers can continue to benefit from more seats, improved flight schedules, shorter connection times, and reciprocal frequent flyer schemes,” he says.
Since the alliance was approved in 2012, visitor arrivals from Hong Kong to New Zealand have increased by more than 16 percent. Cathay Pacific recently announced it will operate an extra 13,500 seats on the Auckland-Hong Kong route in the 2015/16 peak summer period.
“While the alliance has given travellers to and from Asia more choice and flexibility than would otherwise have been the case, there is room for further improvement. My expectation is that Air New Zealand and Cathay Pacific will continue working to show the alliance is in the best interests of consumers.
“The aviation industry is firing on all cylinders, with low fuel prices and strong demand for international travel. The Government is monitoring the Hong Kong route to ensure airlines are responding to these favourable conditions when setting their fares and schedules,” Mr Bridges says.
Aug 25, 2015, 7:51 am
#8
Join Date: Jan 2008
Location: AKL
Programs: A3, AA, AF, AS, BA, SQ, UA, US, IHG, SPG
Posts: 352
NZ regulators are a joke
These NZ "alliances" (read: monopolistic cartel) do nothing for consumers. The non-stop direct AKL-HKG, AKL-SIN and possibly now AKL-PEK are all essentially single-carrier/cartel routes where prices are super similar/fixed by the revenue and inventory sharing agreements. I am surprised that Air NZ hasn't done this with Thai for AKL-BKK, perhaps the money there is not worth the (lobbying) efforts.
This is not like USA-EU and Japan where "alliances" are really alliance vs alliance, such as AA, BA, IB and AY (oneworld)'s revenue sharing vs. UA, AC and LH (Star Alliance).
The NZ-CX alliance on AKL-HKG is the worst. It essentially marries two direct competitors to form a grand coalition of monopoly.
The NZ "regulators" have little teeth, or not interested in biting anything. Look at Telecom-Chorus's "contribution" to the UFB network and ICT industry in general.
This is not like USA-EU and Japan where "alliances" are really alliance vs alliance, such as AA, BA, IB and AY (oneworld)'s revenue sharing vs. UA, AC and LH (Star Alliance).
The NZ-CX alliance on AKL-HKG is the worst. It essentially marries two direct competitors to form a grand coalition of monopoly.
The NZ "regulators" have little teeth, or not interested in biting anything. Look at Telecom-Chorus's "contribution" to the UFB network and ICT industry in general.
Aug 31, 2015, 9:12 pm
#9
Join Date: Mar 2013
Location: New Zealand
Programs: NZ Elite, KQ Gold, Accor Gold, IHG Gold, Choice Gold
Posts: 675
Air New Zealand – Air China alliance authorised
A new strategic alliance between Air New Zealand and Air China will make New Zealand a more attractive destination for Chinese travellers, Transport Minister Simon Bridges says.
Air New Zealand and Air China announced the intention to enter this alliance during President Xi’s State visit to New Zealand in November last year.
Mr Bridges signed the authorisation after it received Cabinet approval yesterday, allowing the new service to compete with existing services operated by China Southern, China Eastern and Cathay Pacific.
“This alliance means travellers will be able to access more flights and lower fares between New Zealand and Beijing and Shanghai, ensuring they have access to a greater range of choices.
“In addition to expanding services, the alliance will mean Air China will actively market New Zealand as a visitor destination,” Mr Bridges says.
“China is our second largest tourist market behind Australia, with visitor arrivals due to double in the next five years. Tourists from China recently pushed New Zealand’s annual visitor numbers over the three million mark.
“As well as that, it’s our number one export destination with annual exports reaching $11.3 billion in September 2014.”
Mr Bridges has authorised the alliance for an initial term of five years and four months.
During this period, the airlines will need to demonstrate the alliance has delivered real benefits to consumers and has not adversely impacted on competition in the New Zealand-China market.
A new strategic alliance between Air New Zealand and Air China will make New Zealand a more attractive destination for Chinese travellers, Transport Minister Simon Bridges says.
Air New Zealand and Air China announced the intention to enter this alliance during President Xi’s State visit to New Zealand in November last year.
Mr Bridges signed the authorisation after it received Cabinet approval yesterday, allowing the new service to compete with existing services operated by China Southern, China Eastern and Cathay Pacific.
“This alliance means travellers will be able to access more flights and lower fares between New Zealand and Beijing and Shanghai, ensuring they have access to a greater range of choices.
“In addition to expanding services, the alliance will mean Air China will actively market New Zealand as a visitor destination,” Mr Bridges says.
“China is our second largest tourist market behind Australia, with visitor arrivals due to double in the next five years. Tourists from China recently pushed New Zealand’s annual visitor numbers over the three million mark.
“As well as that, it’s our number one export destination with annual exports reaching $11.3 billion in September 2014.”
Mr Bridges has authorised the alliance for an initial term of five years and four months.
During this period, the airlines will need to demonstrate the alliance has delivered real benefits to consumers and has not adversely impacted on competition in the New Zealand-China market.
Sep 1, 2015, 12:56 am
#10
Join Date: Apr 2013
Location: Australia
Programs: QF Gold, NZ *G, TK Elite *G
Posts: 186
Schedule confirmed. Daily A330 service starting 10 DEC
CA783/NZ3888 PEK0040 – 1810AKL 330 D
CA784/NZ3889 AKL2000 – 0430+1PEK 330 D
Flights are in the GDS and now available for purchase
CA783/NZ3888 PEK0040 – 1810AKL 330 D
CA784/NZ3889 AKL2000 – 0430+1PEK 330 D
Flights are in the GDS and now available for purchase
Sep 1, 2015, 2:10 am
#11
Join Date: Feb 2014
Location: Auckland
Programs: NZ*E
Posts: 186
Sep 1, 2015, 7:00 am
#13
Join Date: Jan 2008
Location: AKL
Programs: A3, AA, AF, AS, BA, SQ, UA, US, IHG, SPG
Posts: 352
They are not bad if you have onward connections and you like nighttime flights. I like both.
And consumers lose. CA and CX have cross share holding in each other, so every airlines win, not just NZ.
These Air NZ "alliances" are the second worst thing in NZ aviation after apparent or hidden fuel surcharges (does NZ govt explicitly ban them like Brazil and Philippines, anyone knows?). Neither should be allowed to exist.
And consumers lose. CA and CX have cross share holding in each other, so every airlines win, not just NZ.
These Air NZ "alliances" are the second worst thing in NZ aviation after apparent or hidden fuel surcharges (does NZ govt explicitly ban them like Brazil and Philippines, anyone knows?). Neither should be allowed to exist.
Sep 1, 2015, 7:37 pm
#14
Join Date: Feb 2011
Programs: NZ*E
Posts: 808
not knowing too much about the alliance and the environment... why would this be a lost to consumers?
the new proposed flight only goes to PEK and yes there are a few areas served from from there as its the hub for CA, people who want to fly to PVG, HKG, CAN would not take the new service anyways?
and if the alliance is en-route Europe, then people can book with CX/SQ already anyways and they would not really want to be on CA? and if flying to SE asia, they would transit normally at SIN or HKG instead, so while it is an approved alliance, I don't think it will be a major one?
yes it would mean that the prices are not going to come down too much, but they are not anyways as the route would not be viable anyways? look at how NZ started this back in 2008 and have to had it canned to focus on PVG
the new proposed flight only goes to PEK and yes there are a few areas served from from there as its the hub for CA, people who want to fly to PVG, HKG, CAN would not take the new service anyways?
and if the alliance is en-route Europe, then people can book with CX/SQ already anyways and they would not really want to be on CA? and if flying to SE asia, they would transit normally at SIN or HKG instead, so while it is an approved alliance, I don't think it will be a major one?
yes it would mean that the prices are not going to come down too much, but they are not anyways as the route would not be viable anyways? look at how NZ started this back in 2008 and have to had it canned to focus on PVG
Sep 1, 2015, 8:08 pm
#15
Join Date: Dec 2013
Location: Usually Auckland, NZ
Programs: NZ Elite (*G), QF S (OWR), UA 0.14MM
Posts: 690
However, I must argue that there are quite a lot of competition and alternatives if you look at the market in general - China in this case.
In the past year or so we have China Southern starting AKL-CAN and now ramping up to twice daily, with them also starting CHC-CAN year end. China Eastern entering with AKL-PVG this month also provides enough alternatives and very competitive pricing.
As for connecting traffic into the greater China (secondary cities)/Asia region, I am pretty sure CZ and MU is very price competitive against CX and CA, just depends on where you want to connect at and which alliance you have loyalty to.