Qantas plans to increase its presence on New Zealand domestic routes early this year. It currently flies only four Boeing 737s on the Auckland-Wellington and Auckland-Christchurch trunk routes. It also codeshares with Origin Pacific, a Nelson-based regional airline, on three of its other routes.
Under the single aviation market accord between Australia and New Zealand, locally-owned carriers from either country enjoy cabotage rights in the other.
Geoff Dixon, Qantas chief executive, told reporters on a recent New Zealand visit that Qantas will boost local visibility by shifting more aircraft from Australia. Dixon says he will also be seeking board approval of a plan to acquire more aircraft specifically for the New Zealand market.
He did not say how many but promises to hire local cockpit and cabin crews for these extra flights. Qantas loses money on New Zealand domestic routes, Dixon concedes, and the proposed additions may not make them profitable.
Yet, he contends that Qantas requires a much greater involvement in the New Zealand market for logistical and network purposes.
Qantas currently uses Auckland as a gateway for flights to Los Angeles, and operates trans-Tasman flights from Auckland, Christchurch and Wellington to major Australian cities.
Some observers, however, see this as part of a Qantas strategy to put more pressure on Air New Zealand (ANZ).
Eventually the New Zealand government hopes to reduce its 82% stake in ANZ by bringing in a "cornerstone investor" that officials say will likely be another airline. Last year Qantas offered to buy a 30% stake in the New Zealand carrier.
Source: Airline Business
