Competition between NZ and the US: Air NZ-Qantas co-operating against foreign competition, new air services agreement with the USA and withdrawal of Pan Am from NZ

These three articles from the late 1980s focus on international aviation to New Zealand, and reflect upon the changing competitive environment. 

The first from 1988 reflects on large airlines in Europe and the US seen as likely to consolidate and become mega-carriers that threaten the competition of Air NZ and Qantas. Ultimately this would lead to the emergence of the three big airline alliances in the late 1990s (Star Alliance which Air NZ joined, OneWorld, which Qantas helped fund and Skyteam).  However, this article focuses primarily on whether Air NZ and Qantas could join forces to fend off US competition. Bear in mind that at that time, Qantas was solely an international airline (Australian Airlines remained the Australian state-owned domestic carrier competing with Ansett). Qantas was seen as much greater risk from competition, given demand for flights between the US and Australia, compared to New Zealand.  The claim was that the US-Australia/NZ market could get completely dominated by US carriers, which did not ultimately occur. It noted United made a net loss on Pacific routes of $70m (NZ) in 1986. Noted was that the key to Air NZ's success to/from the US was feeding Australia, which remains the case. 

The second reports on a newly minted air services agreement between the US and New Zealand that reflected the US being open to New Zealand's recently liberalised domestic airline market and approach to competition. It details the freeing up of restrictions on capacity and pricing (which still needed government approvals, but accelerated them) and noted that Air NZ would have more access to the US, with new airports it could fly to.

The third is a slightly older short article reflecting how Pan Am was withdrawing from New Zealand in 1986. Pan Am sold the rights to fly to the South Pacific to United Airlines, and would ultimately cease operations in 1991. It had started flying to NZ in 1937.

Dominion 12 February 1986