Air New Zealand has ended its partnership with Virgin Australia. The agreement was due for reauthorisation by the Australian government, but ANZ said it wasn’t intending on renewing it.
The news is no real surprise as ANZ has progressively withdrawn from part ownership of Virgin Australia and now will become a competitive rival with it.
Quite what this will mean for the busy routes between the two countries will have to be seen. Often competition brings lower prices – but often ends in unprofitable services that get cut.
ANZ has also been cutting its unprofitable domestic regional operations – but the expectations are that new, regional airlines will appear to replace them.