Air New Zealand and Virgin Australia are ending their trans-Taman alliance.
The two airlines have worked together since 2010, co-operating on services between New Zealand and Australia.
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Regulatory approval for the alliance expires at the end of October 2018, but the airlines won't be applying for renewal.
Cam Wallace, chief revenue officer for Air New Zealand, said times have changed and our national airline has enough clout in the Tasman market to go out on its own.
He said most of our visitors come from Australia, a country in which Air New Zealand has built up a significant presence in its own right.
Mr Wallace said the separation from Virgin will make for a "more consistent customer experience" as Air New Zealand will use its own fleet for flights between here and Australia.
He also promised an "improved schedule", saying details would be provided shortly.
"We remain fully committed to our other alliance relationships and our overall global airline alliance strategy as a critical success factor in other markets."
The current trans-Tasman alliance will remain in place until Otober 27. Passengers travelling before this date won't be affected, while Air New Zealand customers who are booked on Virgin Australia flights (or vice versa) after October 28 will be contacted by the airline they booked with.
Newshub.
