Qantas group (Jetstar) operates domestic NZ with this codeshare agreement in place. I don’t see how this would be different
The difference is that the codeshare agreement was negotiated with this already in place. The agreement does not codeshare on JQ.
If AirNZ decided to expand into Domestic AU and undermine the whole codeshare agreement then it would be ripped up overnight.
I don’t think you understand what the codeshare agreement is or how it works.
An ANZ customer can book a flight from Napier to Perth. They “choose” to travel Napier to Auckland on Air NZ. There is no codeshare on the Tasman so they travel on Air NZ to East Coast AU. If they have the right privileges they can access QF lounges in AU and then “Choose” to codeshare on QF to Perth.
Under this existing arrangement would QF be happy for Air NZ to enter the AU domestic market and operate these services. Why would they when QF will do it it for them?
Air NZ could decided to invest a huge amount of capex to do this but in this current environment it won’t happen. In addition now that they are “frenemies” with QF why would they take on an airline they are working closely with.
It makes no sense.