Air NZ and Virgin Blue's trans-Tasman tie-up

The Australian competition watchdog has done a U-turn on a trans-Tasman tie-up between Air New Zealand and Virgin Blue, clearing the proposed alliance on the condition that the airlines commit to extra flights on certain routes, such as Wellington. If the alliance gets the tick off from Transport Minister Stephen Joyce, the airlines will be allowed to engage in wide-ranging collaboration on prices, capacity, schedules and routes.