AIR New Zealand and Qantas Airways face the prospect of intensifying competition on its trans-Tasman route from other airlines now that a proposed alliance between the pair has been blocked, according to analysts....

...Air NZ's share of trans-Tasman traffic has fallen in the past two years to 32 per cent, from 43 per cent, following the entry of Emirates and Virgin's Pacific Blue, which launched in January.

Qantas has maintained its market share at 39 per cent.

Qantas and Air NZ could form agreements to co-operate on maintenance and back office functions on the route, which is loss-making for both carriers....