Airline travel from New Zealand to the United States has seen plenty of deals over the past year with the introduction of flight by both American Airlines and United Airlines on the Auckland (AKL) to Los Angeles (LAX) and Auckland (AKL) to San Francisco (SFO) routes during the middle of 2016. These routes had been operated exclusively by Air New Zealand for a number of years since Qantas stopped flights to North America out of New Zealand in 2012.
The tie up between Air New Zealand and United on the SFO route was a joint venture that also revenue shared. It meant a reduction in Air New Zealand services (who previously operated twice daily flights some days) that were in turn replaced by the United flight. The earlier United Airlines flight time meant better connections into SFO for those heading across the country on the United Airlines US domestic network.
United have today pulled year round services on the AKL to SFO route and made this route seasonal. The last scheduled services will be on April 16th 2017, however availably beyond March 24th 2017 seems to be non existent. The route will recommence on 31st October 2017.
Those who are cynical will know that the reason for such a tie-up between both airlines seemed merely to introduce additional capacity into North America to compete with American Airlines (AA) who launched AKL to LAX and partnered with fellow oneworld partner Qantas on this route. Both Qantas and American had applied for permission to operate Australian and New Zealand routes as a joint venture, however their application was declined by the US Department of Transportation (DOT) in November, a decision that has also potentially throw into doubt the future of their New Zealand operations in light of their low passenger loadings on this route.
The introduction of American Airlines services saw prices drop as low as $899 return from Auckland to Los Angeles as competition heated up on the route. Such pricing is not sustainable however, and even with pricing that low American Airlines have struggled to fill seats on their planes. Rumours have been around for some time that they’ve been considering pulling the plug on this route, so it’ll be interesting to see if anything eventuates in light of this news from United Airlines.
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Have an interest in retail payments and credit card interchange rates? Here’s your chance to have a say.
Comment by sonyxperiageek, on 11-Apr-2017 23:43
Just in time!
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