http://www.aviationbusiness.com.au
Virgin Blue and Air New Zealand are looking for regulatory approval for a tie up they have been negotiating for months.
The two airlines have applied to Australia's ACCC and the New Zealand Ministry of Transport for the go ahead - but a decision is likely to take up to six months.
The goal is to "strengthen their competitive offering on the trans-Tasman routes and to collaborate on future route and prodcut planning, code sharing and frequent flyer benefits".
But there's no equity transfer involved.
The four key components of the proposal are:
* A broad free-sale code share arrangement covering all Tasman and domestic sectors.
* A revenue allocation agreement by which revenue generated across all Tasman sectors will be allocated between the two parties.
* A frequent flyer cooperation agreement that will provide reciprocal benefits.
* A lounge cooperation agreement.
The proposal does not include domestic-only travel, focusing strictly on travel built around a trans-Tasman sector.
Will the proposal get the double approval it needs?
Probably, despite an ACCC rejection of an earlier proposal from Qantas and the Kiwi carrier, because this one will be seen as a counter to the market power of the Qantas/Jetstar double brand.
But perhaps what is more surprising about all of this is the timing.
With a new CEO due to take the helm at the Blue next week one would have thought that major strategy decisions would be on hold.
Instead there has been a run of significant announcements from the airline. Brett's last burst of energy?
There's no doubt that the incoming John Borghetti has his own vision for the Blue and that we can expect some major shifts in strategy over time.
Perhaps this alliance proposal announcement means that it is part of JB's business plan anyway.
