Shock Qantas, Air New Zealand alliance will take on Virgin Australia

By David Flynn, June 1 2018
Shock Qantas, Air New Zealand alliance will take on Virgin Australia

Qantas and Air New Zealand will join forces in a codeshare partnership intended to isolate Virgin Australia, a former AirNZ ally but now common enemy to both airlines.

The alliance will see Qantas stamp its QF code onto 30 domestic AirNZ services across New Zealand, while the Kiwi carrier will in turn plant its NZ prefix on 85 domestic Qantas flight in Australia.

However, trans-Tasman and other international flights are excluded from the arrangement, which remains firmly planted on each airline's home turf.

Qantas and Air New Zealand business class passengers and top-tier frequent flyers will enjoy reciprocal airport lounge access.

Travellers will also be able to earn points and status credits in each airline's respective loyalty program on flights booked under the appropriate codeshare.

Qantas says that its Jetstar NZ operation will remain, and in cases where a domestic Jetstar NZ flight offers the same or better connection against a trans-Tasman Qantas service than an Air New Zealand flight, the Jetstar flight will carry a QF codeshare but not the Air NZ flight.

The Qantas / Air New Zealand partnership will take effect from October 28 – the same day that the long-standing but often fractious trans-Tasman alliance between Air New Zealand and Virgin Australia is due to expire.

While this was expected to see fierce competition between the two airlines in a battle for their share of passengers ‘across the pond’, it's fair to say that nobody saw a Qantas-AirNZ hookup coming.

"Our relationship with Air New Zealand goes back almost 80 years," reflected Qantas CEO Alan Joyce at a media briefing this morning.

"We've been partners at various stages over that time and we have a lot of respect for them as a competitor."

"A codeshare deal on our domestic markets makes sense for our customers because it leverages the strengths we each have in our home markets."

The airlines promise that coordination of check-in and handling at airports "will mean shorter connection times, opening up more onward flights for customers on each carrier’s domestic networks and faster journey times overall."

Bookings on the codeshare QF/NZ services will be available from the end of July for these routes in New Zealand...

... and for our Kiwi readers, on the following Qantas flights within Australia.


Also read: Qantas rules out no-frills 'Economy Basic' buy-on-board fare on trans-Tasman flights

David

David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.

16 Dec 2016

Total posts 58

Brilliant news! Very clever move Qantas and great for Frequent Flyers in both prog

zac Eriwata Banned
zac Eriwata Banned

Etihad - Etihad Guest

07 Jun 2017

Total posts 2

Great to have this choice...


Qantas - Qantas Frequent Flyer

09 Mar 2017

Total posts 22

VA are so lame.... they have no planes, fly virtually nowhere outside Australia, have not only lost their own partnership with our Trans Tasman rival, but now seen it go to their most fierce domestic competitor in Qantas. Perhaps 'lame' is being kind?

Qantas - Qantas Frequent Flyer

12 Jun 2011

Total posts 148

I imagine the atmosphere at VA today is really jovial...

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 348

I wonder what UA thinks about this? and could we see NZ moving from *A over to OW if the upcoming QF/NZ JV gets approved and deepns?

QF

02 Nov 2012

Total posts 48

it's a codeshare not a JV

Qantas - Qantas Frequent Flyer

28 Feb 2014

Total posts 143

Wow, it hasn’t even been 24 hrs and QF & NZ have closer ties than most of QF’s OW partners. This is amazing news, especially the reciprocal lounge access & SC’s earnings! That’s definitely a huge bonus.

31 Mar 2014

Total posts 397

Wow I didn't see that coming!

JBL
JBL

01 Jun 2016

Total posts 58

Very worried about this re competition. I can't see the ACCC approving it.


Prior to this the QF 'team' had domestic access to both countries through itself and JQ, while the NZ/VA team had domestic access to both countries.

Now the QF/NZ 'team' have extra domestic access to New Zealand while VA has nothing.

As a QF Gold, this is great for perks, but terrible for competition. It's going to deal a pretty big blow to VA and have a significant impact on prices

Qantas - Qantas Frequent Flyer

12 Jun 2011

Total posts 148

I don't believe either QF or NZ need regulatory approval for this tie up.

JBL
JBL

01 Jun 2016

Total posts 58

You're right. Unfortunately I did not glean that from this article but from later reading the NZ Herald one

14 Aug 2015

Total posts 3

It seems to be QF and NZ are only code sharing on some domestic routes on each other's network. They are not price coordinating or capacity coordinating in any way by the sounds of the article. Therefore I do not see a reason why we (as a passenger) should be worry about anti-competition behavior or should they require ACCC approval. The benefit that I see is I am now able to earn QF points on NZ domestic flights (if they have a QF code).

Virgin Australia - Velocity Rewards

19 Jun 2017

Total posts 7

Holy crap. This isn't good for Virgin at all. Hello Star Alliance?

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 348

Depends if NZ moves from *A to OW as part of the pending QF/NZ partnership. Even if NZ does move to OW, and VA changes their mind about alliances, they still the veto from UA to deal with on the *A end due to the DL JV.


If DL ends up buying a VA stake on the other hand, SkyTeam is more likely, especially with JB's past favour for ST over *A.

Virgin Australia - Velocity Rewards

19 Jun 2017

Total posts 7

If VA goes with SkyTeam, what happens with Singapore, which is *A? Correct me if wrong, but none of VA's other owners are aligned with any of the big three. It doesn't seem likely that NZ will move to OW - that's a lot of fuss and bother for very little upside (for them).

24 Oct 2010

Total posts 2561

Definitely drawing a long bow here, this domestic codeshare has zip to do with airlines changing alliance networks: AirNZ is staying with Star.

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 348

Assuming NZ stays with *A, I think it's safe to say that the Star Alliance ship for VA has truly sailed and the door is firmly sealed and locked shut on VA joining in the future. VA has made enemies of NZ and UA and they will not allow them to join.


SkyTeam is VA's only alliance option available to them (if management changes their mind about joining a alliance).

Qantas - Qantas Frequent Flyer

02 Jul 2011

Total posts 1374

Think you are reading way too much into this. NZ isn't moving, and it isn't a partnership.


It's a very limited codeshare on domestic segments, they will still compete TT

Why would NZ move from SA to OW? NZ already code shares with CX.

Qantas - Qantas Frequent Flyer

04 Nov 2011

Total posts 359

Good old fashioned pincer play. checkmate

01 Jun 2018

Total posts 1

I hope this gets declined! Not because Qantas is at all a bad airline, but the anti-consumerism model of this alliance. What will happen with JQ domestic routes in NZ now QF have codeshare on NZ? Will they pull out? Will we go back to paying over $600 return to get to a city, less than an hour away (WLG-AKL, CHC-WLG etc). Nothing in this comes out the right way, and at the end of the day, screws the average New Zealand Traveler. If this does proceed, it should only upon the entrance of TigerAir in the NZ domestic market, to hold NZ accountable.

28 Dec 2016

Total posts 74

You can’t decline something that does not require approval by law or regulations.

Virgin Australia - Velocity Rewards

13 Dec 2012

Total posts 53

Competition regulators have other powers that they could use.

Singapore Airlines - KrisFlyer

17 Nov 2014

Total posts 101

I think Virgin should really ask one of the SkyTeam or Star Alliance for help, or seriously it could really affect its trans-Tasman and international network.

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 348

Star Alliance is pretty much out for VA. VA has "hostile rivals" in NZ and UA.

01 Jun 2018

Total posts 3

As a Kiwi living in Australia, one of the main reasons for joining Virgin was the reciprocal rights to lounge and other benefits with Air NZ. As a Virgin Gold member I feel like we've been thrown under a bus here. I've called Virgin, but they offer no details on life after the Air NZ split. It's just limbo. Does anyone know if you can cross-credit status/points from Virgin to Qantas?

28 Dec 2016

Total posts 74

You can status match onto QF. Remember they are fierce competitors.

02 Jun 2018

Total posts 1

How does one go about organising the status match? I’m glad I saw your post before booking my next flights!

28 Dec 2016

Total posts 74

Well Ausbt itself has a good article about the process. Basically it entails contacting customer services and providing evidence of past travel and future travel intentions.

Qantas - Qantas Frequent Flyer

05 May 2017

Total posts 17

Hi Gary. Look into the Tier Accellerator program which has also been mentioned here: https://www.executivetraveller.com/qantas-secret-fast-track-to-platinum-gold-frequent-flyer-status

01 Jun 2018

Total posts 1

Call Air Nz


01 Jun 2018

Total posts 3

Do Air NZ do a status match or some sort of accelerator program for frequent flyers switching?

07 Oct 2012

Total posts 1250

I'm not sure what your expectations are with Virgin. Air NZ dumped them and there is not exactly a lot of other airlines that Virgin can partner with in the NZ market. What do you want from them?

24 Oct 2010

Total posts 2561

"Does anyone know if you can cross-credit status/points from Virgin to Qantas?"

Can't be done.

Virgin Australia - Velocity Rewards

07 Dec 2015

Total posts 54

Wow, that is pretty big news. Sadly, I think VA have been seriously out manoeuvred here. Where too from here for them?

Qantas - Qantas Frequent Flyer

31 Aug 2012

Total posts 213

Air NZ has always seemed a better fit to OneWorld than *A, in my opinion. Maybe this is the first tentative step in that direction?

31 Mar 2014

Total posts 397

You're kidding right? How could Virgin possibly join OW?

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 348

I think she meant NZ joining OW rather than VA. OW already has VA's bigger brother and co-founder in that alliance.

Qantas - Qantas Frequent Flyer

31 Aug 2012

Total posts 213

Correct DanV; some people should read more carefully before they shoot off a comment.

Qantas - Qantas Frequent Flyer

05 May 2017

Total posts 17

I did not see this coming at all. As a loyal Qantas passenger, I love the idea of this. I feel sorry for how this may affect VA though...

NZ

13 Aug 2016

Total posts 64

How long will VA last with basicly near zero feed from New Zealand?

Air New Zealand - Airpoints

10 Aug 2015

Total posts 79

They do partner with other airlines like Hawaiian, Delta, Etihad and others. But yes, this will affect their Tasman route.

Qantas - Qantas Frequent Flyer

03 Apr 2018

Total posts 1

I was super excited when I read the headline, was hoping for codeshare on the flights between Perth and NZ as QF show us no love on that route.

08 Feb 2018

Total posts 166

So even Qantas has given up on Jetstar NZ?

24 Oct 2010

Total posts 2561

Jetstar NZ is staying.

Qantas - Qantas Frequent Flyer

30 Jan 2018

Total posts 7

I wish it wasn’t , it’s worse here than in Australia. A lot of Aussie expats mourn the loss of Qantas NZ to this day.

23 Oct 2014

Total posts 238

How can a NZ regulator or government approve an airline interline deal which stitches up 100% of NZ domestic market. QF / JQ / ANZ.

Would be a sharade of a compertition for the travelling public in NZ.

Qantas - Qantas Frequent Flyer

28 Oct 2011

Total posts 467

Doesn't require government approval, it's purely a codeshare arrangement. The two airlines are still competing against each other, not collaborating on price and schedule.

lm1
lm1

Qantas - Qantas Frequent Flyer

05 Feb 2015

Total posts 27

Couldn't be happier. Especially allowing reciprocal lounge access. I don't see this is a stitch up though... if NZers want to fly someone else domestically here, they are free to as they always were. For QF flyers in NZ now, life just gets that bit easier. TT remains competitive. I think it's a very smart move.

lm1
lm1

Qantas - Qantas Frequent Flyer

05 Feb 2015

Total posts 27

PS to my knowledge there has been a non codeshare interline QF->NZ for baggage at least for some time on some destinations already.... the basic interline is not new.

Thai Airways International - Royal Orchid Plus

16 May 2011

Total posts 111

Just to break it down for everyone:


- This partnership is not a JV, just a simple code-share (hence no need for ACCC to approve)
- QF will code-share with NZ on its New Zealand domestic network
- NZ will code-share with QF on its Australian domestic network
- There will be no code-sharing nor co-operation on Trans-Tasman services, they are still effectively competitors here
- There will be no further co-operation on international services operated by either carrier, this partnership is purely domestic
- NZ and JQ New Zealand will still be competitors
- There will be reciprocal lounge access and points and status credits earned on each other's programs but more details to be discussed at a later date

What does this mean for QF pax?
It means more choice for QF pax jumping off a QF plane and connecting onwards to a domestic destination on NZ with 1 ticket. They still have the JQ option too.

What does this mean for NZ pax?
NZ pax will have a seamless journey on 1 ticket when hopping off a NZ plane and connecting onto a Australian domestic flight operated by QF.

13 Sep 2016

Total posts 174

Isn't all this what the article says?

12 Dec 2012

Total posts 1029

Yes. But many people aren't reading what the article says and are assuming it means an EK style partnership between QF and NZ.

02 Dec 2016

Total posts 91

Well there you go. Competition is dead and burried.

23 Oct 2014

Total posts 238

“ANZ and JQ will be competitors”

Really ? Who honestly would believe this now moving forward with this arrangement.

Virgin Australia - Velocity Rewards

13 Dec 2012

Total posts 53

It seems to me that this is trying to create a monopolistic supply situation, which has the potential to seriously damage the market (ie NewZealand is now completely tied up by the same groups ANZ and QF via Jetstar). This then leads the international aspect of ANZ and QF between the two countries are relative irrelevant as competition, because they can feed on to their "own" coded networks in both countries.


This could be considered an abuse of market power to significantly harm a competitor, therefore the ACCC should commence an anti-competition review, as it has done in say the supermarket area.

12 Dec 2012

Total posts 1029

How?
Qantas comes up with their own domestic timetables with no input from NZ.
Jetstar comes up with their NZ domestic timetables with no input from NZ
NZ comes up with their domestic timetables with no input from QF.

The airlines simply look at what the other has scheduled and decide which flights they are going to put their own code on.

17 Sep 2015

Total posts 371

You mean 'duopoly' not 'monopoly' but your sentiments are correct.


Old timers will remember Claytons: "the drink you have when you're not having a drink."

This deal is like this: sure it's a codeshare, but I bet, without saying or emailing anything, there's a bit of 'nudge nudge wink wink' going on so fares across the Tasman can rise,on top of any imposition of fuel surcharges.

VA's a pretty weak competitor so I can't see fares staying stable in treal terms or declining, unless consumer demand in Oz or NZ declines as interest rates rise.

23 Oct 2014

Total posts 238

JPmasters totally agreee.

01 Jun 2018

Total posts 4

A lot of assumptions being made here that really have no substance. NZ has no intention of leaving Star Alliance and joining OW. Why would it? Star Alliance (or even) SkyTeam are far superior alliances. It is about to commence direct services to ORD which is a major hub for UA. Also, VA will obviously be knocked about by this decision but has other markets and partnerships it will obviously tap into. The NZ and Trans Tasman are important but not everything. VA will however need to join Star Alliance or SkyTeam if it wants to remain in the game. It can easily join either and still retain individual code share arrangements just the same as the NZ/QF is doing here. Every airline has individual code share agreements regardless of what alliance they are a part of.

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 348

"VA will however need to join Star Alliance or SkyTeam if it wants to remain in the game."


Joining a alliance would be very expensive and as outlined previously VA doesn't really have the money sitting around for it.

Also, forget VA joining Star Alliance. Bitter rivals NZ and UA would veto within moments, even in the unlikely event of a SQ takeover (as they wouldn't honor NZ's alleged wish to revert VA to a domestic only carrier, and SQ aren't exactly best friends with UA either).

Basically SkyTeam is VA's ONLY Alliance option those days.

Virgin Australia - Velocity Rewards

11 Dec 2016

Total posts 74

If VA joined skyteam. It would be a nice reverse hit on QF as the recent AF - QF codeshare would be difficult to codeshare with both Aussie airlines.

The QF codeshare on China Eastern might also have to be cancelled too I guess??

Qantas - Qantas Frequent Flyer

30 May 2013

Total posts 381

This is another story that shows another nail being hammered into Virgin's coffin. They're being killed off very slowly. bit by bit.

Qantas - Qantas Frequent Flyer

01 Nov 2016

Total posts 130

As many have said great for QF and AirNZ. VA unfortunately out muscled. With Etihad going through their own issues, the solid partners for VA are SQ and Delta. VA being blown off the market is not a good outcome.

Qantas - Qantas Frequent Flyer

30 Jan 2018

Total posts 7

The QF premium desk and Amex Centurion were already booking QF passengers on NZ flights domestically for the last 2 years anyway, I asked QF premium Agent why NZ and not JQ and her comment made perfect sense, "they are just too hard to deal with and we want to make sure our customers arrive at their endpoint or connection on time so we will book pax on NZ unless they have a preference for JQ" I asked her how many people took the the Orange Star option............not many!!!!

Qantas - Qantas Frequent Flyer

13 Jan 2015

Total posts 1

What about PER-AKL and ADL-AKL

13 Sep 2016

Total posts 174

What about them? The article makes it pretty clear this is only a codeshare for domestic flights, not AU-NZ flights.

Qantas - Qantas Frequent Flyer

30 Jan 2018

Total posts 7

Whenever we have an article about anything to do with a flight or an agreement anywhere we always have to have the constant drone about Perth. having once unfortunately lived in Perth I can say that maybe it’s because people genuinely want to escape the joint as quickly and cheaply as possible. The article states what’s known and it very clearly stated no trans Tasman hook ups 🙁

Virgin Australia - Velocity Rewards

20 Jul 2012

Total posts 15

The codeshare between QF/NZ isn't new, perhaps and extension of current arrangement.

18mths ago I was planning a trip to NZ and while researching best flights I thought QF might add on a JQ domestic New Zealand flight to where I was going and astonishingly, all domestic NZ sectors were with Air NZ and none with JQ.
I found the same thing end of last year on another trip.
So it seems Air NZ was two timing VA, no wonder they had a bitter divorce.

07 Oct 2012

Total posts 1250

QF and NZ have interlined for a while - which is what you are talking about.


This current deal is about flying Air New Zealand in NZ with a QF code. And flying Qantas in Australia with an NZ code. Which enables frequent flyer earn and lounge access (which an interline between QF/NZ would not).

15 Feb 2018

Total posts 43

Great news. Now I can fly on QF flight numbers in New Zealand without flying Jetstar. Win win situation.

QF

11 Jul 2014

Total posts 1010

Look at the history of what has happened with people who sleep with Air New Zealand, just another one for them to try and jump.

EdS
EdS

QF

21 Jul 2016

Total posts 32

I'm a New Zealander with many years flying. I've been Air NZ Gold Elite but now Qantas P. When I started TT flying any airline would do but gaining status meant choosing an airline. At one time it was Air NZ with Ansett but when it went down Qantas was the only choice and I have historically stuck with QF. This meant years of cattle class flying in NZ. I remember QF domestic lounges at main centres in NZ but that was a long time ago. This code sharing is nothing but a joy to me. I lok forward to accessing AIR NZ domestic lounges. Auckland beats any QF domestic club lounge.

02 Jun 2018

Total posts 1

I'm in the same position; former Air NZ Gold Elite, now QF Lifetime Gold. Flying mostly in APAC region now but still with strong connections to NZ through family and business. This is an excellent move for me and puts to rest thoughts I was having of trying to build my VA status.

01 Jun 2018

Total posts 1

Could this be the restart of VA domestic flights in New Zealand?


With all domestic flights within NZ covered by two major players, with no real need to compete. There is good chance that fares will go up, making conditions ripe for a motivated underdog to shake things up.

VA has many of the assets in place to kick things off quickly, if they so desire: crew bases, terminal space...ext

10 Nov 2016

Total posts 6

Totally agree, they already have trans-Tasman flights happening.

Virgin Australia - Velocity Rewards

10 Dec 2016

Total posts 43

Air NZ flyers will get to experience the "wonderful" service that QF will give their customers within Oz and QF Flyers will get the much better Air NZ service in NZ. Meaning QF flyers in NZ will be better off but Air NZ flyers in Oz wont get the same service they previously got from VA.

01 Jun 2018

Total posts 1

VA have I think 5 ATR72-500’s sitting in Nelson so why not start up some flights with that. I would definitely fly VA over JQ if I couldn’t afford the prices on NZ.

Rav
Rav

18 Aug 2017

Total posts 39

This is good, I can now (after Oct) use my A.NZ dollars on a domestic flight, VA refused to allow and A.NZ would not book on a codeshare domestic.

01 Jun 2018

Total posts 2

its stupid Jetstar flies within NZ Qantas & Jetstar NZ codeshare how will this work if Jetstar NZ & Qantas code share on flights within NZ Like AKL to CHC Jetstar Qantas codeshares on it

So there is no international lounge access at all? just domestic?

Qantas - Qantas Frequent Flyer

14 May 2014

Total posts 5

Any indication of when flights will be able to be booked? Qantas sight redirected me to Jetstar NZ when I gave it a go.

DY
DY

Qantas - Qantas Frequent Flyer

02 May 2017

Total posts 13

As stated in the article "Bookings on the codeshare QF/NZ services will be available from the end of July for these routes in New Zealand..."

09 Oct 2017

Total posts 6

I’m QF Club lifetime, koru paid member, which should I prefer ?

Virgin Australia - Velocity Rewards

15 Aug 2012

Total posts 171

That was unexpected. Borghetti will be under pressure now, that’s a terrible result for VA and surely he’ll be facing some heat on this one.

Singapore Airlines - KrisFlyer

17 Nov 2014

Total posts 101

I have an idea for Borghetti: Virgin New Zealand.

Qantas - Qantas Frequent Flyer

04 Nov 2017

Total posts 348

The other alternative: TigerAir NZ.

Virgin Australia - Velocity Rewards

21 Aug 2013

Total posts 138

What does the sixth paragraph, "the Jetstar flight will be carry for a QF codeshare" mean, exactly?


"Qantas says that its Jetstar NZ operation will remain, and in cases where a domestic Jetstar NZ flight offers the same or better connection against a trans-Tasman Qantas service than an Air New Zealand flight, the Jetstar flight will be carry for a QF codeshare but not the Air NZ flight."

02 Jun 2018

Total posts 1

I fly to regional NZ from Sydney a fair bit on Qantas tickets. When purchasing tickets on the Qantas website the NZ domestic segments offered up have always included both QF coded NZ JQ flights and also AirNZ coded flight options on the ticket.


This announcement simply changes the AirNZ domestic segments to having a QF codeshare attached. So realistically not a lot is changing, but its a nice little improvement all the same.

Try searching a flight SYD-NPE, or SYD-NSN on the Qantas website and you can see the arrangement Qantas already has with AirNZ as both AirNZ and NZ JQ fly to these destinations.

Virgin Australia - Velocity Rewards

14 Mar 2017

Total posts 152

I'm looking at CBR > WLG flights early November, and still seeing VA/NZ flights, and no NZ flights on QF...

Qantas - Qantas Frequent Flyer

14 May 2014

Total posts 5

Any updates on whether it is possible to book these codeshare flights yet? Qantas website just redirects me to Jetstar.

Any further news on the new arrangements. I have called QFF and they have said benefits are ONLY FOR PLATINUM FF.

14 Oct 2016

Total posts 2

so i hast had a long chat with Qantas FF office. The Codeshare is simply for connecting international flights, not if you are simply flying from Wellington to Christchurch for example. I already have a cross tasman QF flight and they can't even quote against that ticket. This codeshare looks to be completely useless.


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