I think they're obviously trying to cherry pick where there's a gap in the market and use that going forward to gradually roll out other products.

They are looking to strip out $250m in costs, and the question is how much of the cost-cutting drops to the bottom line, and how much they lose along the way.

We're in an environment where share prices are trading ahead of valuations.

It's been a good period for them with a continuation of steady growth in revenue and operating profit.

I see this as a win-win scenario for the airlines, the airports and the customers. Both Air NZ and Qantas gain more from growing traffic on the Tasman into their domestic networks.