Airlines Across The Tasman Go To War

Things are about to heat up across the Tasman. Travel Shack expects airfares to drop a bit over the next few months as Air New Zealand ended its alliance with Virgin Australia and has now entered into a code share agreement domestically within Australia with Qantas.

So what does this mean for the average punter?

Under the AirNZ-Virgin Alliance effectively they operated as one carrier (known as aircraft neutral) So this meant there were really only major 2 competitors on the Tasman, they were Qantas-Jetstar and Air New Zealand-Virgin Australia.  

With the breakdown of the Alliance it means there are now 3 major Airlines competing instead of 2. We believe New Zealand does not have the population to support filling the extra flights Air New Zealand, Qantas and Virgin Australia are now putting on across the Tasman - So this means an over supply of seats which means prices will come down.

What does the future hold for the airlines?

Well some have described the Tasman as becoming a blood bath between the Airlines. So in the short term they will all fight on price. However it is not sustainable and there will be a loser in the Trans-Tasman rivalry. In saying this we don't expect any of the three airlines to stop flying, what we do expect is for one or all three of them to reduce capacity and possibly frequency in the long term.

So who is the best airline to fly across the Tasman?

We have listed the pro's and con's below of each of the airlines below and leave it up to you to decide.

QantasFlight

The Pros for AirNZ

  1. The profits stay in New Zealand and are reinvested into the economy as well as AirNZ's environmental and social initiatives with NZ.

  2. Gate-to-Gate Seatback Entertainment. AirNZ is the only Tasman Airline to offer this even if you have purchased a Seat Only fare.

  3. Air New Zealand have the youngest and newest fleet flying on the Tasman from their 787-900 Dreamliners to their brand new Airbus A321-NEO planes. So you will find comfort, noise and over all ambiance to be the best. Plus they have a full Business, Premium Economy and Economy product offering on most flights.

  4. From a service perspective Air New Zealand tops the lot. Nothing beats good ole kiwi service.

  5. Airpoints & Lounges this is where AirNZ dominates. Their Airpoints Frequent Flyer program and lounge network is now much better than Qantas or Virgin Australia. (That is of course when the lounges are not heaving with the punters)

Photo by James Coleman

Photo by James Coleman

The Cons for AirNZ

  1. Depending on how you look at this one it could be a pro or a con. But AirNZ have opted to keep their Seats to Suit options where customers can choose from Seat Only, Seat+Bag, TheWorks or WorksDeluxe in economy when flying across the Tasman. The option of the No Frills Seat or Seat+Bag does annoy some people as booking online it is the biggest mistake made. However on the other end of the spectrum it gives people choice on how they would like to fly.

  2. AirNZ historically sit about $20-$30 more expensive for their full service (The Works) fares compared to Virgin Australia or Qantas. They justify this with their service standards, product offering and new aircraft. 

  3. Full flights - AirNZ are really good at filling their seats compared to the other carriers. So there is a good chance if you are on the 7am AKL-SYD the plane will be full.

  4. The current Rolls Royce Engine Issue which has impacted the Air New Zealand Dreamliner fleet has meant that AirNZ have down-gauged (smaller aircraft) or are using older Singapore Airlines lease aircraft to operate their schedule 

The Pros for Virgin Australia

  1. Have moved to a full service product offering. This means meals and baggage are included in your fare (as for entertainment see below in the cons). Their meals are now fresh and healthy.

  2. Velocity Points are the quickest way to earn status. You only need 9 Trans-Tasman flights to earn silver status which is half of Qantas or AirNZ.

  3. Cheap fares, we expect Virgin to be the cheapest of the three carriers. This is simply due to the fact they their product offering and aircraft are not as good. 

  4. Virgin are the only carrier to fly Auckland to Newcastle (from 22nd November), providing a different holiday destination and opening up the Hunter Valley

  5. Business Class on small planes. VA have 2 business class rows on their 737-800 fleet across the Tasman. For the more discerning traveller this is a benefit especially when the bathroom only has to be shared by a few.

Virgin_Australia_VH_FFF_Plane.jpg

The Cons for Virgin Australia

  1. No Entertainment! Well unless you bring your own device and it is fully charged... oh and you will need to download an Entertainment App that often doesn’t work. This is extremely frustrating especially on a flight full of kids.

  2. Poor service, Virgin is notoriously bad when it comes to customer support and service out of New Zealand. They make life difficult and have many policies in place which get you lost in their labyrinth when something does not go to plan. 

  3. Lines for the toilets - There is either only 1 or 2 toilets at the rear of Virgins aircrafts across the Tasman if you sit in economy. This is a big pain-point and the toilets often get very messy making them unusable at times.

  4. VA have the smallest (except Jetstar) seat pitch across the Tasman with 29-30" (73-76cm). So legroom and space is quite limited comparatively to the other carriers.

The Pros for Qantas

  1. Qantas offer 30kgs of luggage, this is a huge advantage is you were a family of 4 giving you an additional 28kgs compared to the other carriers.

  2. Qantas are truly full service. This means that no matter what price you pay for your flights it includes all your Movies, Luggage and Meals across the Tasman.

  3. Australian domestic network, this is where Qantas shines, their Australian domestic network and lounge network is huge and by far the market leader. 

  4. Qantas now fly a mix of single aisle and wide body aircraft (similarly to AirNZ) with their fairly new A330-300 aircrafts operating during peak times from Auckland to Brisbane, Sydney and Melbourne. The A330 has a 2-4-2 configuration which is great for couples. 

  5. Qantas points with Uber, Resturants and Hotels in Australia. You can now earn Qantas Points (their loyalty programme) throughout your journey with Qantas. Something very unique and many people will enjoy the perks.

Photo by John Kappa

Photo by John Kappa

The Cons for Qantas

  1. Qantas's 737 fleet which they predominantly use is old, with very average interiors and small screens. Comparatively to AirNZ or Virgin their interiors feel old and ambience is not as good.

  2. Service on Qantas is ok, but is not consistent. Their 737 fleet operated by Jetconnect (a Qantas subsidiary) have average service but their A330 fleet tend to have quite good service.

  3. Like Virgin Australia leg space and pitch is a problem for Qantas across their fleets. They have decided to prioritise more seats than passenger space and comfort on their aircrafts which is a real shame.

  4. No gate to gate seat back entertainment. On Qantas you need to wait until the aircraft is in the air to watch your movie. This can be frustrating as you could be sitting on the tarmac for 30 mins before departure.

  5. Qantas interiors often broken. Quite often on QF flights across the Tasman they put their older 737 aircraft and the fixtures and fittings are often not working the way they should be.  

Our Pick

Purely on the fact that Air New Zealand have such a huge sustainability and environmental focus; plus invest heavily to the benefit of New Zealanders we would choose AirNZ. However often price is a big factor in which case Qantas would be 2nd off the rank. In saying that there is no doubt the increased competition will fuel innovation and service, so we do expect Virgin Australia lift their game and better their service levels.