Air NZ launches new routes amid split from Virgin Australia

Air New Zealand will launch two new routes across the Tasman from December and add 15 per cent seat capacity across all its Tasman services. Picture / Greg Bowker

Air New Zealand will launch two new routes across the Tasman from December and add 15 per cent seat capacity across all its Tasman services as it pulls the plug on a seven-year relationship with Virgin Australia.

The NZX-listed carrier has announced it would not reapply to continue an alliance from October, which prompted Virgin to warn that it may expand across the Tasman and possibly use its budget arm, Tigerair, in this country.

Air New Zealand said from December 18 it would operate up to four times a week between Queenstown and Brisbane, increasing its international capacity from the city by 20 per cent. It would also operate up to five times a week between Wellington and Brisbane - a 15 per cent increase, or 20,000 seats.

Air New Zealand would also increase transtasman capacity into and out of Christchurch from October 28, including a move to double daily on peak days of the week to both Melbourne and Brisbane, and double daily Monday to Friday for Sydney. This represented a 15 per cent increase in capacity or about 35,000 extra seats on Christchurch transtasman routes.

Air New Zealand would also offer 125,000 additional transtasman seats from Auckland, including a new business-timed morning flight to Melbourne, more evening flights to Brisbane and a new middle of the day flight to Sydney.

The fares were on sale now.

Cam Wallace, Air New Zealand's chief revenue officer, last week said existing arrangements where passengers could fly on each others' aircraft would continue until October 27.

However, Air New Zealand's strategic imperatives and objectives on the transtasman had changed.

''Ultimately we do believe that we service our customers better in an adjacent market with our own aircraft, our own staff, our own product,'' Wallace said.

Australia was the largest source of inbound visitors to New Zealand and Air New Zealand had built up a significant presence in the Australian market.

Customers booked on an Air New Zealand ticket to travel on a Virgin Australia aircraft after October 27 would be moved across to Air New Zealand operated services in the next few weeks and would be contacted by either the airline or their booking agent regarding any changes.

Air New Zealand's announcement on the end of the relationship surprised Virgin Australia whose chief executive and managing director John Borghetti said his airline has had a strong presence in the New Zealand and transtasman market since 2004 and would continue to enhance its offering to suit both the business and leisure markets.

''Virgin Australia will continue its strong focus on providing competition.''

He told the Herald Tigerair was building up its fleet of Boeing 737s which he said would give it the flexibility to fly the Tasman and within the New Zealand domestic market.

''Our willingness and strength is to be as competitive as possible on any route whether it be on the Tasman or anywhere else. We were we thought with a good alliance partner and now we won't be. When we're not we will compete very vigorously.''