Virgin Blue (ASX:VBA) and Air NZ (NZE:AIR) in Alliance Talks
Sydney, April 29, 2010 AEST (ABN Newswire) - Virgin Blue Holidngs (ASX:VBA) and Air New Zealand (NZE:AIR) confirmed that the two carriers have been in ongoing discussions for several months regarding commercial cooperation on Trans Tasman markets, but no agreement has been reached.
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.
Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: email@example.com