Virgin Blue and Air New Zealand have been given conditional authorisation by the Australian Competition and Consumer Commission to create an alliance on flights between Australia and New Zealand.
Qantas Airways is reportedly in talks with potential partners for its budget airline Jetstar to establish regional hub access in China and India to combat Virgin Blue's deal with Etihad giving it access to the middle east.
Qantas is taking the fight to Virgin Blue's plans to dominate the domestic air travel market amongst business travellers by adding 820,000 seats to its Jetstar discount airline.
Qantas has been displaced as the Australian Government's sole airline of choice, with Virgin Blue, Jetstar and Regional Express joining Qantas in sharing the Government's domestic air travel contract.
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