Paul Phelan/CAIRNS
Air New Zealand (ANZ) and Qantas are preparing their positions for a major battle to secure market share on high frequency, low cost trans-Tasman services. The two carriers are also shoring up their competing services through to Europe.
The Qantas strategy of gradually lifting frequency to New Zealand at the expense of capacity has provoked ANZ to announce an 85% frequency increase of its own from Australia's main city of Sydney to Auckland, Wellington and Christchurch. The new schedules, based on the use of three new Boeing 737-300s in place of Boeing 767-200s, will lift trans-Tasman capacity by only 3%, but deliver 192 flights a week between Australia and New Zealand.
In response Qantas, which has steadily gained market share since it began regular 737 operations on Tasman routes about five years ago, is now exploring closely a separate low cost subsidiary to maintain its competitive edge in the trans-Tasman markets as well as in its own domestic operations.
The projected move, which may represent a fleet of up to 14 aircraft from the Qantas 737 fleet, could be designed to forestall any Air New Zealand attempt to expand its own low cost carrier, Freedom Air.
The two carriers have also moved to fortify their positions on the lucrative Australia-Europe routes. ANZ will now code-share with Singapore Airlines on three weekly flights from Singapore to London and three to Manchester, completing a chain of alliances which allows ANZ to offer round-the-world tickets for the first time. The carrier is also increasing the frequency of its service between London and New Zealand via Los Angeles later this year.
British Airways and Qantas have received approval to code-share on daily BA Melbourne-Sydney-London flights through Bangkok, and on daily Qantas Sydney-London flights, also through Bangkok.
Source: Flight International
