Air New Zealand and Etihad Airways have come to a code-share agreement for flights across the Tasman and to the Middle East.
The deal will allow Air New Zealand passengers to fly on Etihad between Australia and Abu Dhabi and London.
Etihad passengers will fly on Air New Zealand planes on trans-Tasman and domestic services.
Passengers will be able to use their own loyalty programmes with either airline.
Craigs Investment Partners' head of institutional equities Geoff Zame says Air New Zealand's new relationship with Etihad should improve demand on the hotly-contested Trans-Tasman route.
Air New Zealand recently bought a 15% stake in its new trans-Tasman alliance partner, Virgin Blue.