Air New Zealand and Singapore Airlines Form “Deep Alliance” – Award Impact?

These two Star Alliance partners are getting a bit closer. Air New Zealand announced this morning a “deep alliance” with Singapore Airlines, resuming flights to Singapore for the first time since 2006. Air New Zealand will fly its own aircraft between Auckland and Singapore and share revenue with Singapore Airlines from all flights on the route. Air New Zealand will also have a co-ordinated sales and codeshare arrangement with Singapore and its subsidiary SilkAir on its 14 routes to Britain, Europe and key South East Asian markets, including Indonesia and India. In terms of award seats to Australia / NZ, with a 30% increase in seats between Singapore and New Zealand due to additional flights and larger aircraft, we may see additional award availability if you’re willing to connect in Singapore (not a bad option)…we’ll have to wait to confirm that one though until the flights are loaded.

The Sydney Morning Herald reports that Air New Zealand will take over half of the flights currently operated by Singapore Airlines. The tie-up between Singapore Airlines and Air New Zealand – two of Virgin Australia’s three largest shareholders – will also step up pressure on Qantas in the world’s fastest-growing travel market. ”This is a genuine win-win partnership, enabling Singapore Airlines and Air New Zealand to work together to provide more frequency and enhanced travel options to our customers,” Singapore Airlines chief executive Goh Choon Phong said. The alliance comes in the wake of Singapore Airlines sealing a deal to set up a full-service airline in India. The tie-up with Air New Zealand will result in Singapore Airlines flying its A380 superjumbos on a daily basis between Singapore and Auckland.

Codeshare and co-ordinated sales to:
• France
• Germany
• Italy
• India
• Indonesia
• Malaysia
• Netherlands
• Philippines
• South Africa
• Spain
• Switzerland
• Thailand
• Britain
• Vietnam

Codeshare only:
• Bangladesh
• Brunei
• Burma
• Cambodia
• East Timor
• Maldives
• Nepal
• Russia
• Saudi Arabia
• Sri Lanka
• Turkey
• United Arab Emirates

Full PR release:

Singapore Airlines and Air New Zealand have agreed to form an alliance enabling Air New Zealand to fly the Auckland-Singapore route again and Singapore Airlines to operate the Airbus A380 to New Zealand for the first time.

The A380 would be operated daily by Singapore Airlines between Singapore and Auckland, progressively replacing an existing daily service with the smaller Boeing 777-300ER. Air New Zealand would launch daily services between Auckland and Singapore using newly refitted Boeing 777-200ER aircraft, taking over five flights currently operated by Singapore Airlines and adding two more weekly flights, increasing the frequency to daily. Subject to regulatory approvals, the carriers would aim to boost their existing capacity between Singapore and New Zealand by up to 30% year round over time. Singapore Airlines’ daily Singapore-Christchurch service would continue as part of the alliance.

The proposed alliance would enable Air New Zealand passengers to access codeshare travel on the Singapore Airlines network to the United Kingdom, Europe, South East Asia and Africa, as well as on the network of its regional subsidiary airline, SilkAir. Singapore Airlines’ customers would be able to access codeshare travel across the Air New Zealand domestic network and to selected international destinations.  Air New Zealand Chief Executive Officer Christopher Luxon added, “Air New Zealand is on a positive growth trajectory with a clear focus on Pacific Rim destinations. An alliance with Singapore Airlines clearly fits our business objectives of working with the right partners in the right markets to deliver seamless customer journeys.”

The alliance would see Air New Zealand’s ‘NZ’ code return to Singapore Airlines’ network for the first time since 2007. Air New Zealand last operated to Singapore in 2006. The parties are seeking approval for the alliance from the Competition Commission of Singapore and the New Zealand Minister of Transport.  Pending approval, flights could commence as early as December 2014.