Transtasman airline pact happy surprise

Air New Zealand and Qantas have put aside their cut-throat commercial rivalry to form a new bond. It also has the potential of being good for passengers. The two airlines, with other Australian-based carriers Regional Express Holdings and the Virgin Australia Group, have formed a new advocacy group — Airlines for Australia and New Zealand.

It came as a surprise to airports, the main target of airlines’ push back, as it appeared as likely as All Black coach Steve Hansen sitting down for a friendly chat over a cold one with his Wallaby counterpart, Michael Cheika.

The relationship between the New Zealand flag carrier and its much bigger rival across the Tasman runs hot and cold depending on commercial and political imperatives. Right now it’s at a cool stage.

So burying the hatchet to form a lobby group suggests airlines are worried. They have already signalled their profits are trending down and want to get on the front foot with a new voice to challenge airport fees, government agency charges at airports and border taxes.

On flights across the Tasman, a route that ranges from “challenging” to a “bloodbath” for airlines, fees, taxes and other charges can make up 40 per cent of the price of a ticket.

Speeding up glacial progress in making transtasman flights more like domestic travel is also an aim.

In Australia, Qantas has concerns about federal passenger movement charges, which have ballooned to around $65, regional airport charges and those at the country’s main airports.

In New Zealand, regional airport charges worry airlines, Auckland Airport is about to release details of a new charging regime and Air NZ adamantly opposes Wellington’s runway expansion.

While Auckland Airport says it is spending $1 million a weekday on airfield and terminal infrastructure, it has a look of a considerable catchup. Airlines have pointed to heavy spending by the airport on its own retail operations, property development and liberal returns to shareholders.

Difficulties many passengers have had getting to and through the airport at peak times have infuriated Air NZ and other carriers but they have been reluctant to vent openly about it. There’s been an aversion to going it alone.

Hence the new lobby group. It will be chaired by Australian competition expert Professor Graeme Samuel, the former chairman of the Australian Competition and Consumer Commission. He is, by all accounts, not backward in coming forward.

You’d be struggling to get much sympathy for airlines in regional centres where just one operates and practically charges what it wants.

But on most routes there is unprecedented competition. Airlines in the Asia Pacific are forecast by the International Air Transport Association to make about $5 profit for every passenger carried this year — a little over the price of a cup of coffee.

There’s undoubted airline self-interest in keeping down external costs but there’s a spin-off for passengers. The carriers have a new voice.

Let’s hear it.