Air New Zealand is ditching its trans-Tasman alliance with Virgin Australia.
The two airlines have partnered for seven years on codesharing, feeding passengers on each other’s networks and sharing lounge access on Australia-New Zealand routes.
Air NZ will go it alone from October ‘to deliver a more consistent customer experience’ it said.
The alliance will continue as usual until 28 October and will not affect passengers booked on flights up until this date.
Customers with confirmed bookings beyond October 28 will be contacted and offered alternative options.
"The market has changed significantly as has our strategy and penetration in Australia," Air New Zealand chief revenue officer Cam Wallace told Reuters.
Virgin now hopes to compete more effectively on Australia-New Zealand routes possibly using its low cost unit Tigerair.
"This provides opportunities for the Virgin Australia Group on the Tasman, including operating both the Virgin Australia and Tigerair Australia brands in the market," Virgin chief executive John Borghetti said.
