Air New Zealand Ltd decried the recent decision of the Australian Competition and Consumer Commission (ACCC) to block the carrier's proposed alliance with Virgin Blue Holdings Ltd, emphasising that the competition watchdog's move is a threat to its existence.

Air NZ chief executive Rob Fyfe told reporters at the National Aviation Press Club lunch in Sydney on Wednesday that the airline's future strategies has been effectively threatened by ACCC's decision as he underscored that the "agency's preliminary finding represents a threat to this strategy, in effect, a threat to our future."

Mr Fyfe urged the ACCCC to reconsider its position as he argued that "if we are to earn the right to continue to fly and grow, then the deal with Virgin Blue is a central plank of that strategy."

Air NZ and Virgin Blue were planning to forge a partnership that they said would best serve the trans-Tasman service routes where cooperation by the two airlines on pricing, revenue management, schedules, capacity and routes.

However, the ACCC saw it the other way as it issued a ruling on September 10, in which the competition watchdog observed that the proposed alliance by Virgin Blue and Air NZ would most "likely to reduce competition in the market for trans-Tasman air passenger services."

The regulatory body conceded that the two airline companies may have it right when they argued that their planned collaboration would lead to specific benefits for the travelling public such as cost reductions and operational efficiencies.

The ACCC noted though that it was unsure if such benefits would have wide-ranging effects as it expressed "doubts about the magnitude of these benefits."

Mr Fyfe said that it was a consolation that the ACCC left its door open for submission of rejoinders on the draft ruling as he stressed that the company is ready present further information that could lend support on the proposed Air NZ and Virgin Blue alliance.