American Airlines to codeshare with Jetstar

In yet another indication of the growing cooperation between airlines to beat the market competition, Jetstar and American Airlines have decided to share domestic New Zealand services to boost air traffic numbers into particularly in Queenstown and the lower South Island in New Zealand.

The new alliance could dramatically increase the number of American tourists visiting New Zealand.
American Airlines is the world's second largest airline and US visitors to New Zea land account for a third of the over-all inbound market, worth about $500 million to the economy each year.


Recently Jetstar expanded its services between Singapore and Auckland and this segment can also be a major beneficiary of the new code share agreement. The proposed code share agreement applies to domestic services between Queens town, Christchurch, Wellington and Auckland and accounts for 116 weekly flights. It is noteworthy that American Airlines already has an existing agreement with Qantas, the owner of Jetstar with respect to flights between Los Angeles and Auckland in Newzealand.

From now on the passengers on international flights to Newzealand could catch a domestic Jetstar flight from Auckland as part of one itinerary. Code share agreements have been one way in which airlines cooperate to beat the recessions.