New Zealand government approves Hong Kong air alliance extension

A strategic alliance between New Zealand's national carrier Air New Zealand and Hong Kong-based Cathay Pacific has received government approval for a four-year extension, Transport Minister Simon Bridges said Tuesday.

The alliance, which had been due to expire in January next year, would result better services for travelers between New Zealand and China's Hong Kong and the rest of Asia, Bridges said in a statement.

"This alliance has ensured the airlines work together on tourism and marketing initiatives so travelers can continue to benefit from more seats, improved flight schedules, shorter connection times, and reciprocal frequent flyer schemes," he said.

Since the alliance was approved in 2012, visitor arrivals from Hong Kong to New Zealand had risen by more than 16 percent, and Cathay Pacific had announced it would operate an extra 13,500 seats on the Auckland-Hong Kong route in the 2015-2016 peak southern summer period.

"While the alliance has given travelers to and from Asia more choice and flexibility than would otherwise have been the case, there is room for further improvement. My expectation is that Air New Zealand and Cathay Pacific will continue working to show the alliance is in the best interests of consumers," said Bridges.

"The aviation industry is firing on all cylinders, with low fuel prices and strong demand for international travel. The government is monitoring the Hong Kong route to ensure airlines are responding to these favorable conditions when setting their fares and schedules."

Air New Zealand and Cathay Pacific welcomed the extension, which will run until Oct. 31, 2019.

Air New Zealand chief executive officer Christopher Luxon said the cooperation with Cathay Pacific played an important part in the airline's Pacific Rim strategy.

"This agreement has not only let Air New Zealand broaden its offering to customers between New Zealand and Hong Kong, but has also allowed us to offer our customers excellent access to destinations throughout China and North Asia on Cathay Pacific and its sister airline Dragonair," Luxon said in a statement.

Cathay Pacific chief executive Ivan Chu said in the statement that the alliance offered travelers more connection opportunities to destinations in China's mainland via Hong Kong and beyond Auckland.

Currently the carriers operated one daily return service each, increasing to a total of three daily return services over peak months in the northern winter season.