15 Dec 2010

Air NZ, Virgin alliance decision soon

8:34 am on 15 December 2010

Air New Zealand is expecting a decision on its proposed alliance with Virgin Blue in the next couple of days.

The two airlines want to merge their trans-Tasman operations to compete more effectively against Qantas and its low-cost subsidiary, Jetstar.

The Australian Competition and Consumer Commission initially rejected the proposed tie-up as anti-competitive, and its final ruling is due soon.

In New Zealand, the Ministry of Transport is considering the application, which requires the approval of the Minister, Steven Joyce.

Air New Zealand chief executive Rob Fyfe says he's hopeful the deal will be approved.