New Zealand skies open. (Air New Zealand)

Air New Zealand braces as bilateral agreement allows competitors to enter the U.S./New Zealand market.

LOS ANGELES

Open skies may mean turbulent skies for Air New Zealand, which expects increased competition as a result of the new U.S./New Zealand bilateral agreement.

The agreement, signed in June, will permit carriers of each nation to provide air services to and from and beyond the two countries. The agreement eliminates restrictions on how often carriers can fly, the kind of planes they can use and the prices they can change.

New Zealand carriers are worried.

"Open skies doesn't offer much benefit to New Zealand operators," said Peter R. Burn, Air New Zealand's Los Angeles-based …