Current regulatory approval for the alliance expires at the end of October this year and the parties will not apply for renewal.
Air New Zealand chief revenue officer Cam Wallace says market dynamics on the Tasman have changed and the time is now right for each airline to focus on its own objectives.
‘This move will enable us to deliver a more consistent customer experience by using our own fleet and delivering an improved schedule, which we’ll provide more details about shortly,’ he says.
According to Virgin Australia group chief executive officer and Managing Director John Borghetti, this change will provide opportunities for the Virgin Australia Group on the Tasman, including operating both the Virgin Australia and Tigerair Australia brands in the market.
‘Virgin Australia will continue its strong focus on providing competition and outstanding service on the Tasman, which remains an important part of our network and strategy as an airline group,’ says Borghetti.
Current trans-Tasman alliance arrangements will remain in place until 27 October and customers travelling before this date will be unaffected.
Customers booked with Air New Zealand to travel on a Virgin Australia service (or vice versa) after 28 October will be contacted by their booking airline.