Qantas says still talking to Air NZ on co-operation options

Qantas Airways Ltd is still talking to Air New Zealand about ways in which the airlines can co-operate to save costs.

Chief executive Geoff Dixon said he caught up with Air New Zealand head Ralph Norris last night to discuss the issue.

"Both of us still have a desire to work cooperatively together," he said.

Last September, a New Zealand court rejected the plans by the airlines to form a A$500 million ($555 million) trans-Tasman alliance as anti-competitive.

A month later, the Australian Competition Tribunal gave the green light to the alliance, overturning an earlier ruling by the Australian Competition and Consumer Commission.

The tribunal supported all three aspects of the proposal - code-sharing, coordination of marketing, pricing and scheduling and the acquisition by Qantas of a 22.5 per cent stake in Air NZ.

Qantas today reported a 28 per cent lift in first half net profit to A$458.4 million, beating market expectations of a profit around A$430.5 million.

Qantas shares are down seven cents to A$3.57 at 1255 AEDT (1455 NZT).

- AAP