Airline News
Canberra backs Qantas-China Eastern deal, Air NZ Houston bound
April 20th 2015
The proposed alliance between Qantas Airways and China Eastern Airlines has moved a step closer to fruition after the Australian Government expressed support for it. Read More » The Australian Competition and Consumer Commission (ACCC) had earlier signalled its resistance and said the deal would give both carriers more than 80% of the direct capacity between Sydney and Shanghai.
Canberra’s Department of Infrastructure and Regional Development said the ACCC’s draft decision was “too narrowly focused” on the Sydney-Shanghai route instead of the greater benefits it provides for the wider Australia-China market, and saw “no reason to deny” the proposed alliance. Canberra has identified inbound Chinese tourism as a major growth engine for the economy. It has recently passed legislation to allow Chinese visitors to apply for three-year, multiple entry tourist visas to Australia.
Across the Tasman, Air New Zealand (Air NZ) last week announced a new five-weekly Boeing B777-200ER service between Auckland and Houston, hub of Star Alliance partner United Airlines, – from December 1, the longest route on its network and its fourth destination in the U.S. Air NZ chief, Christopher Luxon, said the carrier was “absolutely committed to expanding [its] Pacific Rim network”, after it recently announced it will fly to Buenos Aires, also from December, and would increase frequency to Los Angeles to thrice-daily during the peak season. New Zealand’s flag carrier is in a strong position to bear the costs associated with the new routes. It performed solidly at half-year reporting in February, with a record before-tax $216 million profit, up 20% year-on-year. However, the competition is looking closely at Air NZ, with many in the industry suggesting American Airlines is weighing the options of launching services to Auckland from the U.S. West Coast.
In other news, Air NZ and aircraft parts supplier, AJW Group, have signed a deal under which Air NZ’s maintenance arm will carry out component MRO, on behalf of AJW, for Tigerair Australia’s fleet of 13 Airbus A320s. “We want to create a real hub for component maintenance in the Asia-Pacific region. It’s incredibly exciting to have Tigerair Australia on-board and we hope to soon begin dialogue with other carriers,” said Air NZ chief operating officer, Bruce Parton. In Australia, Qantas last week announced a new Boeing B717 maintenance facility would be built in Canberra. The facility is scheduled to open in October and employ 40 engineers.
