Shock Qantas, Air New Zealand alliance will take on Virgin Australia
By David Flynn, June 1 2018
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 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
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 351
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!
01 Jun 2016
Total posts 58
Very worried about this re competition. I can't see the ACCC approving it.
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.
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 351
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.
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 2563
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 351
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.
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.
10 Apr 2015
Total posts 14
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 52
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 351
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
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 2563
Can't be done.
Virgin Australia - Velocity Rewards
07 Dec 2015
Total posts 55
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 212
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 351
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 212
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 165
So even Qantas has given up on Jetstar NZ?
24 Oct 2010
Total posts 2563
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 239
How can a NZ regulator or government approve an airline interline deal which stitches up 100% of NZ domestic market. QF / JQ / ANZ.
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.
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.
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:
13 Sep 2016
Total posts 174
Isn't all this what the article says?
12 Dec 2012
Total posts 1031
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 239
“ANZ and JQ will be competitors”
Virgin Australia - Velocity Rewards
13 Dec 2012
Total posts 52
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.
12 Dec 2012
Total posts 1031
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.
23 Oct 2014
Total posts 239
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 351
"VA will however need to join Star Alliance or SkyTeam if it wants to remain in the game."
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).
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.
Qantas - Qantas Frequent Flyer
30 May 2013
Total posts 383
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 16
The codeshare between QF/NZ isn't new, perhaps and extension of current arrangement.
07 Oct 2012
Total posts 1250
QF and NZ have interlined for a while - which is what you are talking about.
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 1024
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.
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?
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.
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
21 Oct 2017
Total posts 3
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.
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 351
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?
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.
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.
05 Oct 2011
Total posts 195
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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