17 May 2011

New air alliance to reduce Christchurch flights

7:34 am on 17 May 2011

Air New Zealand and Virgin Blue say they're committed to expanding the trans-Tasman market but will be cutting capacity from earthquake-damaged Christchurch because of reduced demand.

The airlines received approval to form a trans-Tasman alliance last year and have now released details about how the new joint network will look.

Air New Zealand will operate about 70% of the new trans-Tasman network and Virgin Australia's Pacific Blue 30% - a ratio that reflects their market share.

As part of the tie up, the airlines have removed flights that left at similar times and have spread them across different times to maintain capacity.

The airlines say seat numbers in and out of Wellington will increase by 3.5% and remain steady in Auckland.

But capacity to and from Christchurch will be cut by about 14% to reflect the reduced demand following the earthquakes.

The code-share arrangement begins in July, and the airlines say they hope to grow capacity further from March next year.

They will also make a decision before the end of the year about potential new trans-Tasman routes.