Virgin Blue (ASX:VBA) and Air NZ (NZE:AIR) in Alliance Talks
Shares in both airlines soared after the two issued statements in response to media speculation about their Trans Tasman alliance.
The talks come seven years after the Australian competition watchdog knocked back a similar deal between Qantas Airways (ASX:QAN) and Air New Zealand due to competition concerns. The route between Sydney and Auckland is highly competitive with flights operated by a number of carriers, including Qantas and its subsidiary Jetstar.
Air New Zealand said it will not comment further on speculation related to these discussions but will advise markets as required if an agreement is concluded. Both parties said they will advise markets if any agreement is concluded.
Virgin Blue Holdings Limited
Qantas Airways Limited
Air New Zealand Limited