Code-share deal to boost Air NZ share of US market

Air New Zealand has extended its reach into the United States in partnership with Continental Airlines.

Under the code-share agreement the airlines will sell seats on each other's services.

Air New Zealand will code-share on more than 540 flights a week to and from Continental hub airports in Houston, New York and Cleveland, connecting to its services to Auckland from Los Angeles and San Francisco.

Continental will sell seats on Air New Zealand's trans-Pacific services, as well as trans-Tasman flights from Auckland, domestic services, and flights between Auckland and Hong Kong.

Air New Zealand group general manager Ed Sims said the agreement was an "exciting inbound tourism opportunity for New Zealand".

"There were 198,000 visitors from the USA to New Zealand in the 12 months to February 2010, with just 10,000 from Texas and 11,000 from New York State, so this new arrangement provides plenty of growth potential," Mr Sims said.

The agreement covers destinations in the US not covered by Air New Zealand agreements with fellow Star Alliance partners United Airlines and US Airways, Mr Sims said.

Air New Zealand demand on its North American and London routes increased 2.6 per cent in February compared to the same month last year.The airline's shares added another 3 cents yesterday to close on a new two-year high of $1.45 a share, up 15 per cent since the end of last month.

- © Fairfax NZ News