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More airline competition in New Zealand market

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Air New Zealand has warned that it faces increased competition as tourism booms.

Fresh from a lower-than-expected but still record annual profit, the company said it expected increased rivalry in the New Zealand market.

New Zealand is experiencing a tourism and migration boom, with visitor arrivals up 11.2 percent to 3.34 million in a year.

American Airlines has launched an Auckland-to-Los Angeles service with joint venture partner Qantas , ending the monopoly Air New Zealand had on the trans-Pacific route.

Other international airlines including Qatar Airways and China’s Tianjin Airways have also announced flights to New Zealand.