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MARCH 2019

Week 9


A JV Will Fix That

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March 1st 2019

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Air Canada to serve Auckland, but no worries to Air New Zealand – they’re already planning a JV. Read More »  

Air Canada is filling out its Pacific network, adding Auckland to existing services to Brisbane, Melbourne and Sydney. Air New Zealand is not concerned about increased competition on its core North American market since Air Canada’s announcement includes a Memorandum of Understanding for a revenue-sharing joint venture (JV) with the Auckland-headquartered carrier.

In the last decade, Air NZ has transformed its long-haul network by converting competitors into JV partners. Almost all of Air NZ’s long-haul capacity is flown under a JV or is in a market without a direct competitor.

Air New Zealand CEO Christopher Luxon down played analysts’ concerns about North American competition, with their memories still fresh from American Airlines entry to Auckland. “This is a very, very different experience here,” Luxon said.

The JV effectively lessens Air Canada’s competitive impact on Air NZ. “We’re very comfortable, very relaxed about that,” Luxon said of Air Canada’s entry.

Air Canada’s four weekly 787-8 service is seasonal from December 12, 2019 to March 31, 2020. Air Canada and Air NZ will have similar schedules but be tailored to maximise home hub connections.

Air NZ departs Vancouver in the evening and arrives early morning in Auckland. Air Canada will fly out of Vancouver in the late evening and arrive in New Zealand mid-morning. Air NZ departs Auckland in the evening and arrives Vancouver at midday. Air Canada will leave Auckland mid-afternoon and arrive in Vancouver early morning.

Qantas operates seasonal three weekly Sydney-Vancouver 747-400 flights from December 12 to January 25. Air NZ’s Americas network has notable sixth freedom traffic from Australia.

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