Virgin Australia, Air New Zealand launch fresh alliance
Velocity points, status credits and lounge access are back on the table for AU-NZ flights.
By David Flynn, August 23 2024
Former partners Virgin Australia and Air New Zealand will launch a fresh alliance which the airlines promise will unlock more seamless travel while boosting the appeal of Virgin’s Velocity frequent flyer program.
Under the rebooted trans-Tasman partnership, passengers will earn Velocity points and status credits on AirNZ flights sporting a VA flight number between Australia and New Zealand, and will also be able to use Velocity points to book those Air New Zealand flights.
Travellers will able to directly book Air New Zealand flights into Auckland, Wellington and Christchurch from the Virgin Australia website and app.
In addition, Velocity Golds and Platinums – along with members of the invite-only Beyond program – will enjoy access to the Kiwi carrier’s lounges when travelling on VA-coded Air New Zealand flights.
Following approval by Australian and New Zealand regulators, the new alliance – described as “a unilateral trans-Tasman codeshare agreement” – will launch “before the end of the year.”
“The regulators’ endorsement reflects the strong consumer benefits the partnership will unlock, including greater value, choice and loyalty rewards for travellers across the Tasman,” says Virgin Australia Chief Strategy and Transformation Officer Alistair Hartley.
Australian Competition and Consumer Commission (ACCC) Deputy Chair Mick Keogh said the competition watchdog is satisfied that the pairing will provide “more ticketing and price options on trans-Tasman routes”, with both airlines “able to jointly offer discounts and a range of marketing options to businesses.”
However, Virgin's existing flights between Sydney, Melbourne and Brisbane to Queenstown are not part of the alliance, with Virgin and Air New Zealand effectively remaining as competitors on those routes.
And this is effectively a one-way arrangement, without any reciprocal benefits – such as points earning or lounge access – for Air New Zealand’s own frequent flyers when travelling on a Virgin Australia flight.
Virgin Australia and Air New Zealand enjoyed a long and deep partnership until October 2018, when the Kiwi carrier pulled out of the alliance over disagreement with Virgin Australia’s direction under then-CEO John Borghetti.
Qantas unexpectedly swooped in to ink a new alliance with the Star Alliance member, although this was restricted to a codeshare on domestic flights within Australia and New Zealand, rather than flights between the two countries.
Executive Traveller understands the Qantas-Air New Zealand domestic partnership will not be impacted by this trans-Tasman agreement between Virgin Australia and Air New Zealand.
19 Jun 2020
Total posts 20
Great news. How much of a premium will using the VA code include compared to NZ-marketed?
Virgin Australia - Velocity Rewards
07 Dec 2015
Total posts 54
Guarantee it will cost more on the VA marketed flight vs NZ direct. I never book SQ on VA website - usually significantly more and there is minimal benefit if you don’t need the eligible sectors. The difference here will be NZ lounge access for VA Gold/Plat which I assume will only be available on the VA marketed flights
31 Dec 2014
Total posts 48
Alliance-lite.
Next trip to the long-white-cloud I still plan on first class with Emirates.
Virgin Australia - Velocity Rewards
24 Jan 2018
Total posts 762
Hmmm. Could this be one small step closer to becoming a Star Alliance member?
20 Oct 2015
Total posts 245
Don't reckon so. There's been talk of VA joining Star Alliance for years, back to the John Borghetti days, and it's simply never been something Virgin has ever expressed an interest in. I don't think Virgin's new owners Bain would be interested either, it would be great for us passengers but will it really 'move the needle' in terms of bookings for example? Nope. Nobody who flies QF domestic or short-haul now would move to VA just because VA is in Star Alliance, and VA would already get its share of international travellers inbound on SQ, UA, AC etc for domestic traffic. I read somewhere that being a member of an alliance costs millions per year, and I don't reckon Bain would pay that out unless the move was going to make them millions and millions in profit. And if QR takes a stake in VA as has been suggested then QR would not want VA in Star Alliance, well not unless QR was also to leave OneWorld and join Star Alliance, and that's probably not going to happen either with QR's stakes in IAG etc.
QF
11 Jul 2014
Total posts 1003
Am I understanding no points or status credits on a AirNZ ticket?
The weakness in the armour for VA is the international side of the business. I find SQ the only reliable part of the alliance, a full-blown use of AirNZ on any flight (Lounge, Points and Status Credits) would bolster the VA offering but what would Qatar say about that ?
Qantas - Qantas Frequent Flyer
04 Nov 2017
Total posts 344
Correct, no status or points for booking on the NZ code.
It was always stated that the VA/NZ agreement was a (one-way) uni-lateral agreement where it only benefits VA FF's (and has to be booked on the VA code). There are no reciprocal benefits for NZ FFs flying VA in Australia or ex-ZQN.
Basically, VA is acting as an authorised travel agent on behalf of NZ for VA passengers booking services to AKL, WLG and CHC.
03 May 2024
Total posts 2
I don't think Qatar airways would do anything as they have an agreement with air New Zealand to use the lounges in Brisbane Syd and Melbourne for there Qatar business class passengers anyway and they own 15% of LATAM which is a skyteam member
Qantas - Qantas Frequent Flyer
31 Mar 2016
Total posts 32
Definately not an "Alliance" and nothing like it used to be - really just a limited codeshare agreement.
Appears the NZ-QF agreement is still better.
Disappointing really - if you visit regional airports -no value. I can see a lot of confusion on here already as people are confusing it with the former (and much more superior) alliance.
Will be interesting to see how much more expensive the VA codeshares are.
Qantas - Qantas Frequent Flyer
23 May 2018
Total posts 28
so when does this start or has it already started?
20 Nov 2015
Total posts 477
As the article says, "before the end of the year."
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