Qantas calls time on Air New Zealand codeshare partnership

By Andrew Curran

1.48 pm. October 9, 2026. AEDT. Updated with input from Qantas.

Qantas is ending its codeshare arrangement with Air New Zealand in April 2027, calling time on a partnership that has been in place since 2018. Concurrently, Qantas’s domestic competitor, Virgin Australia, has applied to the Australian Competition and Consumer Commission (ACCC) to enter into a reciprocal codeshare partnership with Air New Zealand, replacing the existing limited and unilateral agreement in place.

“The partnership between Qantas and Air New Zealand will end on 7 April 2027,” the Qantas website advises. “Qantas codeshare flights operated by Air New Zealand will no longer be available to book from this date.”

Under the partnership, Qantas was able to add its QF fight designator on up to 30 routes on Air New Zealand’s domestic network, while Air New Zealand was able to add its NZ code on up to 85 routes on Qantas’s domestic network.

There were also reciprocal benefits in place for members of each airline’s frequent flyer programmes.

However, Virgin Australia applied to the ACCC last month for authorisation to implement a reciprocal codeshare arrangement on trans-Tasman services (excluding Queenstown) and connecting domestic services. The two airlines also want to implement comprehensive reciprocal frequent flyer accrual and redemption and status benefits recognition across the each other's networks.

Virgin Australia and Air New Zealand want a reciprocal codeshare arrangement

It is a step up from the existing arrangement, whereby Virgin Australia can place its flight designator on certain Air New Zealand-operated trans-Tasman services. This arrangement has been in place since 2024. At the time, Air New Zealand was uninterested in a reciprocal arrangement, saying it was happy with its deal with Qantas.

The proposed new arrangement between Virgin Australia and Air New Zealand replicates the existing arrangement in between Qantas and Air New Zealand, albeit with far more bells and whistles. The proposed new arrangement is a comprehensive strategic partnership that includes codesharing, whereas the arrangement in place between Qantas and Air New Zealand was simply a codeshare partnership with some frequent flyer benefits.

There are some interesting backstories at play here. The ACCC has historically thwarted efforts by Qantas and Air New Zealand to forge a comprehensive strategic partnership because the two airlines command the lion’s share of the trans-Tasman market.

Air New Zealand used to be a shareholder in Virgin Australia last decade but famously had a falling out and ended up divesting its stake. Relations between the two airlines remained sour for some time.

That falling out paved the way for Qantas to ink its codeshare partnership with Air New Zealand in 2018, even if it was not the deep partnership the two airlines had previously sought permission for.

A Qantas spokesperson did not address questions about the proposed Virgin Australia - Air New Zealand agreement but told Aero South Pacific that its partnership was right for the times and that a lot has changed since it began.

"With significant growth in Qantas and Jetstar trans-Tasman services, and Jetstar's domestic New Zealand services, more customers are flying direct," the spokesperson said.

Qantas partners with over 30 airlines and its partnership with Air New Zealand accounted for less than 0.1% of frequent flyer reward seat books and redemptions. Since 2018, the Qantas Group has grown capacity on trans-Tasman routes by 35%.

Qantas ends eight year old partnership with Air New Zealand

While Qantas hasn’t operated domestically within New Zealand for almost two decades, its subsidiary Jetstar does. Qantas also aggressively competes on trans-Tasman flights and uses Auckland (AKL) as a launch pad for flights further east, including to Apia (APW) and New York (JFK) – both routes directly competing with Air New Zealand.

In 2020, Virgin Australia went into administration and was sold to Bain Capital. Previous airline shareholders who held on to their Virgin Australia stakes lost their money. Under new management and ownership, and with Virgin Australia quitting trans-Tasman flying (except for Queenstown (ZQN) services), relations between Air New Zealand and Virgin Australia began thawing.

Now, while telling the ACCC that the two airlines would like to “deepen and enhance their existing commercial relationship”, Air New Zealand also indicated that it “would likely continue its traditional arms-length codeshare arrangement with Qantas”.

Air New Zealand now knows that won't be happening.

The ACCC is accepting submissions from interested parties until October 21 and expects to issue a draft determination next month and a final determination in early 2027.

Photo: Qantas.
Contact the writer: andrew@aerosouthpacific.com