.
Air New Zealand (ASX:AIZ) is one step closer to a proposed tie-up with Singapore Airlines after receiving clearance for the proposed alliance from the competition Commission of Singapore. The commission found that any competition concerns were outweighed by the expected economic benefits to Singapore.
The alliance would see Singapore Airlines customers travel across Air New Zealand’s domestic and international routes with a reciprocal deal allowing Air New Zealand customers access to flights across South East Asia, Europe, the United Kingdom and Africa.
The deal will also allow the two airlines to boost passenger capacity between Asia and New Zealand by up to 30 per cent. The alliance is just awaiting sign-off from New Zealand’s transport minister and if approved could start as soon as December.
Air New Zealand reported a net profit after tax of $128.69 million for the year ended December 31 , 2013.
(20min delay)