FAQs ON PROPOSED AIR NEW ZEALAND/SINGAPORE AIRLINES STRATEGIC ALLIANCE
1. What is the nature of the proposed strategic alliance between Air New Zealand and Singapore Airlines?
It is a metal neutral revenue share alliance, similar to our Virgin Australia and Cathay Pacific alliances. This means we will sell each other’s services between New Zealand and Singapore as if they are our own.
The revenue share arrangements are confined to the New Zealand – Singapore services of Air New Zealand and Singapore Airlines, but the scope of the alliance is much wider.
Air New Zealand and Singapore Airlines are also seeking regulatory approval to co-ordinate pricing and to codeshare on a number of markets beyond Singapore including the United Kingdom and points in Europe, South East Asia, India and South Africa, on the network of both Singapore Airlines and its 100% subsidiary SilkAir.
With its initial five year term, this will be an important and enduring strategic alliance for both of us. It will see Air New Zealand recommence operations to Singapore (a route we last operated in 2006) and will enable Singapore Airlines to operate the A380 to New Zealand for the first time.
2. What is the time frame for the commencement of the alliance with Singapore Airlines?
Air New Zealand and Singapore Airlines are in the process of applying to the New Zealand Minister of Transport and the Competition Commission Singapore for regulatory approval to give effect to the alliance.
The expanded network arising from the alliance will go on sale once regulatory approval is received in both New Zealand and Singapore. An authorisation decision is expected mid- 2014.
Subject to regulatory approval, Air New Zealand will commence daily services between Auckland and Singapore as early as December 2014.
3. What capacity will operate under the alliance?
Under the alliance Air New Zealand and Singapore Airlines’ goal is to increase their existing capacity between New Zealand and Singapore by up to 30% year round, over time.
On the Auckland-Singapore route, Air New Zealand intends to replace Singapore Airlines’ five times per week B777-200 flights (285 seats) with a daily operation using Air New Zealand’s newly refitted 312 seat B777-200 aircraft operating at similar timings. Singapore Airlines will also up-gauge its 278 seat B777-300 services to a 471 seat A380 on a seasonal basis,
growing over time. The Christchurch-Singapore route will remain unchanged with a daily Singapore Airlines service using newly refitted B777-200 aircraft.
4. When will Air New Zealand commence operating to Singapore?
Subject to regulatory approval, Air New Zealand will commence daily services between Auckland and Singapore as early as December 2014. Singapore Airlines will cease operating SQ281/282 at the same time.
See 12 below for the proposed alliance schedule.
5. Tell us about Singapore Airlines
Singapore Airlines is a Singapore based airline offering scheduled passenger services to 99 destinations in Asia, North America, South America, Australia, Europe and Africa using a fleet of 100 wide body aircraft.
Singapore Airlines is a member of Star Alliance and is a public company listed on the Singapore stock exchange. Singapore Airlines has a 19.8% stake in Virgin Australia and is the number one operator at Singapore Changi Airport.
SilkAir is a wholly owned subsidiary of Singapore Airlines offering economy and business class on a fleet of 24 narrow body aircraft on short haul services within Asia. SilkAir is not a member of the Star Alliance however as a result of this alliance, Air New Zealand Airpoints members will have the ability to earn and redeem on the SilkAir network.
6. Will there be any equity interests in either airline? Does this signal the beginning of a closer relationship with Singapore Airlines?
No – the airlines will remain separate entities. The strategic alliance is not a signal of intention by Air New Zealand or Singapore Airlines to take a shareholding in the other.
The agreement is Air New Zealand’s and Singapore Airlines’ response to market conditions in the Pacific Rim region and key connecting markets, and the aspirations of Air New Zealand to execute it’s sustainable growth strategy, focussed in the Pacific Rim.
7. Does this agreement have any impact on the airlines’ investment in Virgin Australia?
No. The agreement is Air New Zealand’s and Singapore Airlines’ response to market conditions in the Pacific Rim region and key connecting markets, and the aspirations of Air New Zealand to execute it’s sustainable growth strategy, focussed in the Pacific Rim.
8. Does the strategic alliance cover the airlines’ cargo businesses?
No
9. What are the benefits for customers from the proposed Singapore Airlines / Air New Zealand alliance?
For customers, the alliance will provide: a) Increased capacity and additional frequencies between New Zealand and Singapore, which will lead to the availability of more low fares b) Codeshare connectivity to an additional 50 destinations on the Singapore Airlines & SilkAir networks, growing to an additional 58 destinations over time. The New Zealand to Singapore services connect well to Singapore Airlines and SilkAir services beyond Singapore to South East Asia, the United Kingdom, Europe, India and South Africa c) Airpoints earning, redemption and frequent flyer benefits on SilkAir d) Air New Zealand operations on Auckland-Singapore e) More sustainable presence on Christchurch – Singapore services The combination of increased capacity, the introduction of Air New Zealand code to the Singapore Airlines and SilkAir networks, metal neutrality on the New Zealand-Singapore route, customer benefits across the SilkAir network and new connectivity arising out of the strategic alliance are expected to lead to significant passenger growth and tourism benefits.
10. Will Airpoints Elite and Gold members receive lounge access and other premium customer benefits on Singapore Airlines operated code share flights?
Airpoints Elite (formerly Gold Elite) and Gold members who book an Air New Zealand codeshare flight operated by Singapore Airlines will receive similar frequent flyer benefits when flying between New Zealand and Singapore to those received on other Air New Zealand operated flights.
When travelling on codeshare flights beyond Singapore, Airpoints Elite (formerly Gold Elite) and Gold members will continue to receive lounge access and other premium customer benefits in accordance with their usual Star Alliance entitlements.
11. Will Koru members receive lounge access and other Koru Club benefits on codeshare flights operated by Singapore Airlines?
Koru members who book an Air New Zealand codeshare flight between New Zealand and Singapore, operated by Singapore Airlines, are expected to receive similar benefits to those received on Air New Zealand operated flights, such as lounge access.
Koru members will receive lounge access in Singapore. However, they will not receive lounge access or other premium customer benefits when travelling on codeshare flights beyond Singapore as Koru is designed to provide benefits to Koru members when travelling on Air New Zealand operated flights (including selected revenue share alliance routes).
12. How does Singapore Airlines’ onboard product align with Air New Zealand’s?
Singapore Airlines is a premium airline with a strong brand and high standards of customer service.
Singapore Airlines currently operates Boeing 777s between New Zealand and Singapore. Under the Alliance both Air New Zealand and Singapore Airlines will fly re-fitted B777-200 aircraft between New Zealand and Singapore. Singapore Airlines will also operate an A380 between Auckland and Singapore. The Singapore Airlines flights will offer Suites, Business Class and Economy. The Air New Zealand B777-200 will offer Business Premier, Premium Economy and Economy. Both Air New Zealand and Singapore offer full lie-flat Business class seats and comprehensive in-flight entertainment.
In 2013 Air New Zealand and Singapore Airlines shared top honours at the annual Which? magazine survey in the United Kingdom. The airlines were voted the most popular long haul carriers, each scoring 87 per cent customer satisfaction overall.
The Star Alliance carriers also consistently rank highly in the Star Alliance quarterly customer satisfaction survey which polls frequent flyers of all 28 member airlines on various aspects of the customer experience, including in-flight products, food and beverage and staff interaction.
Alliance partner airlines are chosen for their quality and service standards to complement Air New Zealand, and any difference in product experience will be carefully explained on our customer website.
13. What does Singapore Airlines’ current schedule look like and what will the proposed Alliance schedule look like?
Singapore Airlines are currently operating the below schedule. If the Alliance receives regulatory approval, Air NZ will substitute a daily service for the SQ281 and SQ282 services highlighted above, at approximately the same schedule times. Any passengers who have booked onto the Singapore Airlines services will be contacted and offered re-accommodation onto Air NZ operated services.
Departures from New Zealand
Flight Number Depart Arrive
Auckland - Singapore SQ286 1330 1900
Auckland – Singapore* SQ282 0105 0635
Christchurch - Singapore SQ298 1155 1745
Departures from Singapore
Flight Number Depart Arrive
Singapore – Auckland* SQ281 0850 2345
Singapore – Auckland SQ285 2115 1210+1
Singapore - Christchurch SQ297 1945 1035+1
*Note: This service operates 5 times per week, with 6-7 trips per week in peak season