Qantas and Air New Zealand Sign Tasman Agreement

Sydney, 12 April 2006

Qantas and Air New Zealand today signed an agreement that will see the airlines work together on network, schedule, pricing and marketing initiatives for Tasman operations.

The Tasman Networks Agreement (TNA) extends to the airlines' value-based subsidiaries Jetstar and Freedom Air.

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the TNA, which was subject to regulatory approval in Australia and New Zealand, did not involve any shareholding.

"For some time we have been exploring avenues for greater cooperation with Air New Zealand," Mr Dixon said.

"This commercial agreement enables us to maintain network presence, while realigning some of the current surplus capacity on the Tasman.

"We plan to develop a combined schedule that allows us both to better utilise aircraft and save costs.

"The TNA also allows Qantas and Air New Zealand to codeshare, delivering significant benefits to customers flying between Australia and New Zealand by providing access to both carriers' networks."

Mr Dixon said benefits to customers would include:
* sustainable low fares;
* a better spread of departure times;
* new destination opportunities; and
* Frequent Flyer benefits.

Mr Dixon said the agreement would provide customers of both Qantas and Air New Zealand with access to improved schedules.

"The combined network of Qantas and Air New Zealand means that passengers have a greater choice of trans-Tasman routes and flight times."

Mr Dixon said the TNA would be implemented as soon as regulatory approval was received. This process is expected to take around six months.

Issued by Qantas Corporate Communication (Q3419)