An Australian consumer watchdog is expected to release its decision on the proposed alliance between Air New Zealand and Pacific Blue by the end of the year.
Earlier this year, the airlines announced they were seeking regulatory approval to codeshare on transtasman flights, raising concerns it could lead to increased prices for fares out of Dunedin and Queenstown airports.
However, the Australian Competition and Consumer Commission (ACCC) rejected the proposed alliance in a draft September decision.
The commission said the alliance, if approved, would result in fare increases on five transtasman routes including Brisbane-Dunedin and Sydney-Queenstown.
"It is likely the alliance partners will unilaterally raise fares on the sector," the ACCC said of the Brisbane-Dunedin route.
An ACCC spokeswoman confirmed following the draft decision a further 39 submissions had been received, with a decision expected "later this month".
A New Zealand regulatory decision was anticipated in November - six months after the airlines announced the proposed codeshare arrangement.
A Ministry of Transport spokesman said an analysis of material, including applications, submissions, economic analysis and supporting documentation, was "still continuing".
"The ministry will be sending its final advice to the Minister of Transport in the coming weeks. The minister will then need time to consider our advice and make his decision."
In May, Air New Zealand chief executive Rob Fyfe told the Otago Daily Times the proposal would benefit Dunedin International Airport, the only airport with sole Air New Zealand and Pacific Blue transtasman services.
