The alliance announced today by Air New Zealand and Singapore Airlines is a rational, albeit limited, response to the larger Qantas and Emirates alliance. It may also have implications for Virgin Australia.
Under the alliance Air NZ will target Asian routes via Singapore and Singapore Airlines’ Asian network. It also gets access to Singapore’s European services on a codeshare basis while Singapore Airlines will begin flying A380s between Singapore and Auckland, with codeshare access to Air NZ’s domestic network. The new allies plan to eventually boost capacity on the NZ/Singapore route by up to 30 per cent.