New Zealand govt gives nod to SIA-Air NZ deal

SINGAPORE — An alliance between Singapore Airlines and Air New Zealand was given the go-ahead by New Zealand’s transport authorities, paving the way for more flights and lower fares between both countries.

“Air New Zealand and Singapore Airlines have committed to offering 30 per cent more seats every week between Auckland and Singapore. This will more than compensate for capacity lost when Jetstar withdrew from the route and ensure the availability of low fares,” said New Zealand Transport Minister Gerry Brownlee, who authorised the deal, yesterday.

Through the alliance, it is expected that the two airlines will coordinate operations on the Auckland-Singapore and Christchurch-Singapore routes, as well as provide more connecting flights throughout South-east Asia, India and Europe.

The Competition Commission of Singapore earlier approved the alliance, which was announced in January. With the approval, Air New Zealand will fly to Singapore for the first time since 2006.

As part of the deal, SIA will also operate the Airbus A380 to New Zealand for the first time.

The partnership lasts for four years, during which both airlines will need to show they can deliver real benefits to consumers and that it will not have an adverse impact on competition in other markets.

Said SIA yesterday in a statement: “The alliance will lead to increased flight frequency between Singapore and New Zealand, and provide other consumer benefits, such as improved connections through reciprocal codeshare ties.”

Analysts yesterday lauded the deal, saying there is strong demand for flights between Singapore and New Zealand.

KPMG Singapore partner GordonLawson, who handles leasing and tax issues in relation to aviation, said: “There will always be demand for New Zealand, as many Singaporeans go there. There is also an increased scope for bilateral business.” TAN WEIZHEN