Air NZ Qantas deal 'expected today'

Air New Zealand and Qantas are expected to announce plans for a transTasman tie-up as early as today, according to Australian media reports.

The Sydney Morning Herald said the rival carriers were today expected to announce plans to code-share services across the Tasman in an attempt to slash costs and counter the perceived excess capacity of airline seats on the route.

The Tasman is one of the most competitive routes in the world, with 11 airlines vying for passengers.

Rumours that the pair were close to a code-share deal began circulating in New Zealand late last month, but neither airline has given any indication on timing.

An anti-competitive alliance covering international and domestic services was rejected by competition watchdogs in Australia and New Zealand in 2003.

"We wouldn't consider this transaction if we didn't believe we had a good chance of getting it approved," Air NZ chief executive Rob Fyfe told the Sydney Morning Herald.

Shares in Air NZ closed yesterday down 2c at $1.31.

- NZPA