Air NZ adds Etihad code-share

Air NZ extends Virgin Blue code-share through Emirate’s rival Etihad

Feb. 8 (BusinessDesk) – Air New Zealand signed a code-share agreement with Etihad Airways, the national airline of the United Arab Emirates, which will see them share domestic, trans-Tasman and Australia-Abu Dhabi routes.

The tie-up follows approval from Australia’s antitrust regulator for an alliance between Etihad and Virgin Blue, Air New Zealand’s new partner on the Tasman.

Virgin is to establish an international hub in Abu Dhabi with links through to Europe, the U.K., the Middle East and Africa.

Etihad is Abu Dhabi’s answer to its financially troubled neighbour Dubai’s international airline, Emirates.

Under the deal between Air NZ and Etihad, passengers on New Zealand’s national carrier would fly Etihad between Australia and Abu Dhabi and London.

In exchange, Etihad passengers can fly Air NZ planes between Auckland, Wellington, Christchurch and Queenstown as well as trans-Tasman services.

The code share flights would start from the end of March, subject to regulatory approvals.

Virgin Blue is to begin direct services to Abu Dhabi on Feb. 24.

Abu Dhabi government-owned Etihad, which started operations in November 2003, currently operates a fleet of 56 aircraft and flies to 66 destinations. At the Farnborough Airshow in 2008, the carrier placed an order for up to 205 aircraft - 100 firm orders, 55 options and 50 purchase rights in a deal worth $20 billion.

Over the next 10 years, Etihad plans to take delivery of 106 Boeing and Airbus aircraft. Etihad is the UAE’s second-biggest carrier after Emirates.

Its five-year alliance with Virgin Blue strengthens the Australian airline’s ability to compete with rival Qantas Airways on routes between Australia and Europe.

Shares of Air New Zealand, which is 76% owned by the New Zealand government, last traded unchanged at $1.40 and have gained about 10% in the past 12months.

(BusinessDesk) 10:57:12

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