Although tentatively approved last month, the Australian Competition and Consumer Commission (ACCC) has now granted final approval for the "unilateral trans-Tasman codeshare agreement" for five years.

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Virgin AustraliaFormer partners Virgin Australia and Air New Zealand have officially reunited, enhancing seamless travel and increasing the appeal of Virgin’s Velocity frequent flyer program.
Through the revived trans-Tasman alliance, passengers will earn Velocity points and status credits on AirNZ flights with a VA flight number between Australia and New Zealand, and they can also use Velocity points to book those Air New Zealand flights.
Although tentatively approved last month, the Australian Competition and Consumer Commission (ACCC) has now granted final approval for the “unilateral trans-Tasman codeshare agreement” for five years.
A Virgin Australia spokesperson expressed delight at the ACCC’s decision, calling it a positive development in offering “more value and choice to passengers flying across the Tasman.”
Despite ACCC approval, the airline is still waiting for the New Zealand Ministry of Transport’s decision to finalize the partnership, with no start date announced yet.
Meanwhile, ACCC Deputy Chair Mick Keogh stated that the partnership is expected to provide “more ticketing and price options on trans-Tasman routes.”
“Virgin Australia and Air New Zealand will also jointly offer discounts and various marketing options to businesses, and eligible Virgin Australia customers will access Velocity Frequent Flyer program benefits and international lounge access,” Keogh added.
This means Velocity Gold and Platinum members, along with invite-only Beyond program members, will have access to Air New Zealand lounges when traveling on VA-coded Air New Zealand flights.
The decision will also help Virgin Australia cover gaps in its New Zealand network, as it had ceased all flights to New Zealand except for Queenstown, to concentrate on domestic services.
However, the ACCC specified that this arrangement does not apply to routes where Virgin Australia currently operates or may start operating in competition with Air New Zealand. Presently, these are limited to Virgin’s 737 flights from Sydney, Melbourne, and Brisbane to Queenstown.
It is understood that the Qantas-Air New Zealand domestic partnership will remain unaffected by this agreement between Virgin Australia and Air New Zealand.
Virgin Australia and Air New Zealand had a strong partnership until October 2018, when the Kiwi carrier withdrew due to disagreements with Virgin Australia’s direction under then-CEO John Borghetti. Qantas then formed a new alliance with the Star Alliance member, limited to domestic flights within Australia and New Zealand, rather than trans-Tasman flights.
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