Air New Zealand and Qantas Alliance would Boost Tourism

New Zealand's tourism industry will receive a large boost from an alliance between Air New Zealand and Qantas, the Commerce Commission hearing was told today.

Executives from Air New Zealand and Qantas, and independent experts, told the hearing that the alliance would deliver more than 60,000 additional tourists to New Zealand each year. A summary of the evidence presented on the tourism benefits of the alliance follows:

* Air New Zealand is the main source of inbound tourism and domestic tourism promotion.

* Air New Zealand flies more tourists into New Zealand than any other airline and provides 40% of all airline seats into New Zealand.

* Air New Zealand's network, systems and distribution growth constraints can only be resolved by an alliance with Qantas.

* Air New Zealand and Qantas have committed to spending an additional AUD$5.4 million on the promotion of New Zealand in the year following the effective date of the alliance.

* Air New Zealand Holidays will grow the tourism market to New Zealand by using Qantas Holidays distribution and IT platforms. It would take years and significant cost to replicate this system, which is not an option for Air New Zealand.

* Working with Qantas Holidays offers economies of scale and representation in 25 countries and 37,000 outlets as well as the opportunity to improve tourism numbers during the shoulder and off-peak seasons.

* Independent wholesalers will also grow New Zealand as a destination through the advantages of network enhancements, more economic itineraries and increased destination awareness.

* The network of both carriers will be instantly expanded by an alliance and passengers will receive a seamless travel experience.

* An alliance will provide new services, such as direct non-stop flights between New Zealand airports and Adelaide, Canberra and Hobart.

* An alliance will allow both airlines to exploit new market opportunities which might not have been feasible for one partner to provide - for example, China and South America.