Old rivals fly personal chemistry, good relationship line

By CATHY ARONSON transport reporter

Straight-faced and sitting side by side, the top brass of Air New Zealand and Qantas told the world how once cut-throat competitors now had a great working relationship.

Words like personal chemistry, very good relationship and partnership were used to describe the new relationship of the age-old rival airlines.

They are airlines renowned for saying and doing anything but co-operate during the past 12 months as Air New Zealand fought for its survival after the collapse of Ansett and the Government's bailout.

Qantas chief executive Geoff Dixon, for instance, denies telling a group of managers in February that Qantas would compete fiercely "to put Air New Zealand out of business." And Air New Zealand chairman John Palmer responded that "threats from Qantas are nothing new for us."

Not that the airlines' bosses - the chief executives and the Air NZ chairman and Qantas chairwoman - denied the tensions of the past as they faced a large crowd of journalists, travel agents, exporters and politicians in the Heritage Hotel yesterday.

They were prepared for the level of distrust within New Zealand. In a well-orchestrated campaign, the foursome began sharing their newfound trust, first with the business community, then unions and, finally, with the country through a media conference with video links to Sydney, Wellington, Singapore and Hong Kong.

Air New Zealand chief executive Ralph Norris, as the face of the airline for the past six months, has become accustomed to fighting off rumours about the deal.

Yesterday, he could introduce Mr Dixon as the man with whom he has had a "very good relationship" for the past 12 months.

Sceptical New Zealand could be forgiven for being unconvinced by Mr Dixon's enthusiasm as he said in a dry, monotone voice: "We are pleased to join with Air New Zealand in forming a strategic alliance with potential to strengthen both parties".

Mr Dixon strongly denies he has anything other than the best intention of both airlines to take on the world, and denied that Qantas had forced Air NZ's hand.

"We've done this with some very, very, strong and tough-minded New Zealanders, John Palmer and Ralph Norris. I think they would have walked if they felt we were trying to force them into a situation. The important thing is we have to all get on, we needed to make sure the chemistry is right so the relationship could work."

But he admitted there was nothing to protect the relationship in the future, although Mr Norris pointed out any contract would be reviewed in five years.

"There is nothing to protect it, except that these two companies want to work together," Mr Dixon said.

"The personal chemistry is hugely important, but then getting the two companies together is just as important."

The personal chemistry was on display at the end when Mr Norris gave Qantas chairwoman Margaret Jackson a token peck on the cheek. How long it will last is not known.