Air New Zealand and Air China To Form Alliance

Posted: November 22, 2014 in Econ 101, Free Trade, Technology and Energy


Air China, Air New Zealand to form alliance
Air China Boeing 777-300ER

Air China Boeing 777-300ER

Air China and Air Zealand announced they have signed a statement of intent that will pave the way for a strategic alliance on services between China and New Zealand.

The proposed alliance between the two national flag carriers and Star Alliance partners would see Air China operate a new direct Beijing-Auckland service in addition to Air New Zealand’s existing Shanghai-Auckland service. The alliance remains subject to regulatory approval.

An alliance between the carriers would bring better network connections in both China and New Zealand and increased frequency of flights.

Air China CEO Song Zhiyong said alliances and partnerships are an important way to expand its international network. “In the past three years, we have witnessed double-digit annual growth in the number of Chinese outbound tourists. New Zealand is one of the most important markets for outbound travel from China and Air China is confident about the promising future of this market, particularly considering the airline’s close ties with Air New Zealand, an innovative airline full of vitality and dynamism.”

Air New Zealand CEO Christopher Luxon said a deeper bilateral agreement between the two airlines would help facilitate both business and tourism links between the two countries.

“China is New Zealand’s second largest inbound visitor market and we expect interest in visiting New Zealand to continue to grow amongst Chinese travelers. However, China remains a challenging market for us to operate to. Working with a strong, well-respected home market carrier like Air China would give us a huge opportunity to convert this potential growth, while jointly offering the additional capacity to support it.”

The airlines will continue discussions and hope to reach an agreement early next year that can be filed for regulatory approval.


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