Photo: AFP
Higher airline prices, crowded terminals and fewer upgrades could all be a result of a new codeshare deal signed off by Australian and New Zealand authorities.
The Ministry of Transport has lifted the lid on how it came to recommend that Air New Zealand and Virgin Airlines be allowed to share flights - in a practice known as codesharing - but airports say the rationale doesn't stack up.
Documents released under the Official Information Act show the Ministry initially wanted to recommend the application be declined, citing the fact New-Zealand-based flyers may face more crowded trans-Tasman flights and reduced ability to secure seats or upgrade.
The main consideration however was that the agreement could dis-incentivize Virgin from re-entering the market with its own carriers.
Benefits included possible extra tourists for New Zealand and potentially making Air New Zealand a stronger competitor to Qantas.
Officials stressed to the Minister - who makes the final call - that the decision was "finely balanced" and the overall benefits largely would fall to Virgin Australia.
Kathryn speaks with Air New Zealand's chief alliances and transformation officer Mike Williams and New Zealand Airports Association chief executive Billie Moore.
