Qantas Airways and American Airlines, members of the oneworld airline alliance, have gained approval for a tie-up operating between Auckland and Los Angeles, competing with Star Alliance members Air New Zealand and United Airlines in routes between New Zealand and North America.
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Air New Zealand CEO Christopher Luxon said increased competition on the route was not unexpected.
“Around 140,000 Kiwis travel to the States for holidays each year. We’re expecting that number to rise by about 15%, as capacity increases and airfare prices go down”, he says.
“We have more frequent flyers here anywhere else than outside of Australia”, Mr Joyce said of New Zealand.
“We welcome airline alliances that increase air connectivity and provide consumer choice and competition”, says Mr Carter.
Air NZ shares fell by 5 per cent on Tuesday amid reports an announcement of American Airlines planning to fly from Auckland to Los Angeles would be made on Wednesday.
House of Travel is the largest New Zealand owned and operated retail travel company, with 73 stores throughout New Zealand, from Kerikeri in the north to Invercargill in the south.
“Growth in the Asia-Pacific region is critically important to American”, airline CEO Doug Parker said during a press conference announcing the new route.
There is hope for normal sized adults seeking an economy fare in a tight fit Dreamliner 787-8 if flying between Auckland and Los Angeles daily from next 16 June.
When American Airlines said in June it would investigate direct flights to New Zealand Air New Zealand’s share price took a hammering, although it has recovered since.
On Friday, American Airlines will bring its flagship Boeing 777-300ER to Sydney to promote its direct service starting December 17.
Transport Minister Simon Bridges will also attend the briefing with Qantas chief executive Alan Joyce and American Airlines’ Doug Parker.
“Particularly Air New Zealand, Virgin Australia/Delta Airlines and United who will fight to retain and gain passenger share”. “Los Angeles is New Zealand’s main gateway to the United States”, Bridges said in a statement.
Flight Centre said it would welcome any new route.
Air New Zealand operates a daily service from Auckland to San Francisco, 18 return services per week from Auckland to Los Angeles, four services per week to Vancouver and four services per week to Honolulu, Hawaii.
All that is really needed to make a United States tourism surge into New Zealand really good is a bit of serious advice about the importance of driving on the left hand side of the road.
The route will provide competition to Air New Zealand’s current monopoly of direct travel to the United States.
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Joyce said Qantas planned to upgrade its airport lounge in Auckland, but not in time for the launch of the joint service.
