On 7 August 2014, the Minister of Transport announced his decision to authorise a strategic alliance between Air New Zealand and Singapore Airlines for a period of 4 years.

Under the Alliance, the two airlines will coordinate their operations between New Zealand and Singapore, and on certain services beyond New Zealand and Singapore. The Strategic Alliance Agreement provides for varying levels of cooperation between the applicants on:

  • 'Alliance Sectors' operating directly between Singapore and New Zealand (currently Auckland – Singapore and Christchurch – Singapore). This will see Air New Zealand re-commencing services between Auckland and Singapore. Cooperation on direct services between Singapore and New Zealand will include revenue sharing, codesharing and coordination of capacity and pricing.
  • 'Alliance Routes', which comprise a direct service between Singapore and New Zealand as part of a connecting journey. Cooperation on these services will differ depending on the jurisdiction to which the route originates/concludes. On some Alliance Routes (including to India, Indonesia, Malaysia, Thailand, Viet Nam, Philippines, South Africa and the United Kingdom) the parties will codeshare and coordinate pricing while on others, cooperation will only extend to codesharing.

The airlines intend to commence alliance operations on 1 December 2014, when Air New Zealand will take over one of Singapore Airlines services on the Auckland-Singapore route.

Submissions

The following submissions and comments were received in response to the application:

Download the application

View the application to the Minister of Transport [PDF, 658 KB].

Questions and answers

What is the New Zealand Minister of Transport’s decision on the Air New Zealand-Singapore Airlines strategic alliance agreement application?

The New Zealand Minister of Transport has authorised the alliance.

The authorisation is limited to a four-year period, after which the alliance application will need to be resubmitted for further authorisation.

How will this affect day-to-day operations of both airlines?

Under the alliance, the two airlines will work together on the services and fares they offer to a number of destinations.

Passengers will be able to access a far greater range of connecting flights involving services operated by both airlines. The two airlines will also be able to cooperate on the earning and redemption of frequent flyer points, access to airport lounges, and premium services.

Air New Zealand will take over an existing five-flight per week service currently operated by Singapore Airlines on the Auckland-Singapore route, replacing it with a daily service. Singapore Airlines will deploy an Airbus A380 on its remaining daily service between Auckland and Singapore on a seasonal basis, and will retain its daily service between Christchurch and Singapore.

What will this mean for flight fares?

Under the alliance, capacity on the Auckland-Singapore route is expected to increase by up to 30 percent, which should lead to an increased availability of lower airfares on that route. Savings made possible by the alliance also creates scope for fare reductions on services to other destinations.

What will this mean for tourism in New Zealand?

The alliance will improve the distribution and marketing channels of both airlines, which should stimulate tourist arrivals - particularly from India and emerging markets in South East Asia.

Tourism New Zealand recently extended its marketing partnership with Air New Zealand by $20 million - to allow for a more coordinated marketing effort over the next 12 months in key overseas markets. The proposed alliance would complement this marketing effort, giving Air New Zealand and Singapore Airlines far greater incentives to invest resources in marketing New Zealand as a destination.