http://www.nzherald.co.nz/business/n...ectid=11462743
In a statement the airlines said ''the enhanced relationship also provides opportunities for future growth into trans-Pacific markets not currently served by either airline, such as New Zealand.''
Competition on the Auckland to West Coast USA routes has always been one of AIR's major risks. The competition is now knocking at the door. It seems inevitable that a QF-AA operation through Auckland will follow on from this new revenue sharing arrangement and this will hurt AIR's profits.
It would seem the market agrees.
The AIR shareprice may find it up hill from here longer term.