Wellington, Oct 6 NZPA - Sydney and Canberra airports want the Australian Competition and Consumer Commission (ACCC) to overturn its initial opposition to a planned alliance between Air New Zealand and Virgin Blue on trans-Tasman flights.

Canberra Airport said the proposed alliance would force a "competitive response" from Qantas and Jetstar on the route, The Sydney Morning Herald reported.

The airport said there was a "real risk" Virgin Blue would reduce or vacate the route if regulators did not approve the alliance.

Sydney Airport chief executive, Russell Balding, told the ACCC the planned deal would have "no meaningful impact on competition between airlines servicing trans-Tasman routes and no - meaningful anti-competitive detriment".

In contrast, New Zealand airports want the regulator to stick with its original decision, with the New Zealand Airports Association saying the alliance "is likely to reduce competition".

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