Air New Zealand and Virgin Australia are set to end their trans-Tasman alliance effective on 27 October 2018. The two carriers have collaborated on trans-Tasman services since 2010, which has included extensive code-sharing, joint-pricing and reciprocal frequent flyer benefits. Air New Zealand Chief Revenue Officer Cam Wallace states that market changes have led to this decision. “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,” states Cam Wallace.

The two carriers’ relationship in terms of customer benefits has been reduced over the years since Air New Zealand sold its stake in Virgin Australia back in 2016. The termination of this last remaining alliance between the two airlines will effectively mean the termination of the reciprocal frequent flyer benefits which at one stage was offered across across both airlines’ respective networks, not just restricted to the trans-Tasman.

The current alliance benefits and arrangements will remain in place until 27 October 2018. Passengers travelling beyond this date on code-shared services will be contacted by the operating carrier where further details will be provided.