Air NZ links up with Abu Dhabi

Photo / Brett Phibbs

Air New Zealand has signed a code-share agreement with Etihad Airways which it says will provide opportunities to grow passenger numbers.

Air New Zealand would code-share on Etihad's services between Sydney, Brisbane, Melbourne and Abu Dhabi as well as between Abu Dhabi and London Heathrow.

Etihad would code-share on Air New Zealand's transtasman and domestic services.

Etihad Airways' chief executive James Hogan said the agreement opened up five key destinations in New Zealand the airline had been eager to offer to its customers.

"We are certain the connections and seamless flight experience offered by Etihad and Air New Zealand will appeal to business and leisure travellers," he said.

Air New Zealand chief executive Rob Fyfe said: "This arrangement with Etihad Airways further extends connectivity options for our customers through to Europe as well as providing opportunities to further grow passenger numbers for our transtasman and domestic services."

The agreement would integrate Air New Zealand Airpoints and Etihad's "Etihad Guest" loyalty programmes.

Goldman Sachs head of research Marcus Curley said the code-share was positive for Air New Zealand at the margin. The code-share provided another feeder service on to the Tasman services, Curley said.

And it provided some protection around long-haul routes.

"The potential risk in the future of seeing direct services into Auckland by them is probably reduced."

Air New Zealand expected the flights to be on sale from this month, after relevant government approvals.

Shares in Air New Zealand closed unchanged yesterday at $1.40.