Air New Zealand and Air China Alliance Cleared for Take Off

A new alliance between Air New Zealand and Air China has been cleared for take off after receiving Government approval.

Transport Minister Simon Bridges said the alliance would lower fares between New Zealand and Beijing and Shanghai.

Under the alliance the two national carriers have launched a new daily direct route between Auckland and Beijing, with special introductory one way fares already on sale for NZ$539.

Under the alliance Air New Zealand would continue to operate its daily service between Auckland and Shanghai and Air China would operate the new service between Auckland and Beijing from December 10.

The two Star Alliance carriers would codeshare on each other's services between New Zealand and China.

Air New Zealand pulled its direct twice-weekly Auckland to Beijing service in June 2012 after heavy losses, and instead focused on its Auckland to Shanghai route.

Bridges said the alliance would also make New Zealand a more attractive destination for Chinese travellers.

"In addition to expanding services, the alliance will mean Air China will actively market New Zealand as a visitor destination."

The Air New Zealand and Air China alliance was initially proposed during President Xi's visit to New Zealand in November.

Bridges signed off the alliance after it received Cabinet approval on Monday.

The new service would compete with existing services operated by China Southern, China Eastern and Cathay Pacific.

"China is our second largest tourist market behind Australia, with visitor arrivals due to double in the next five years," Bridges said.

China was also New Zealand's biggest export destination with annual exports reaching NZ$11.3 billion in September 2014, he said.

Bridges authorised the alliance for five years and four months.

During this period, the airlines would need to show the alliance had delivered benefits to consumers and not adversely impacted on competition in the New Zealand, China market, he said.

Air New Zealand said in a statement the alliance would result in capacity between Auckland and mainland China increasing by more than 25 percent.

Air New Zealand chief executive Christopher Luxon said the alliance would deepen tourism and business connections between China and New Zealand.

"China is New Zealand's second largest inbound visitor market and by collaborating with a strong, well respected home market carrier like Air China we can work together to grow this market, and benefit customers through a new direct link between New Zealand and Beijing."

Under the alliance Air New Zealand would continue to operate its new Boeing 787-9 aircraft on the Auckland, Shanghai route.

Air China would use A330-200 aircraft on the route between Auckland and Beijing.

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