Air New Zealand and Virgin Blue have submitted a 59 page report to the Australian Competition and Consumer Commission, denying rumours that their trans-Tasman alliance will reduce competition and increase fares.

The submission comes after New Zealand airports claimed the alliance would not only cut competition but lead to a decrease in passenger numbers The Australian reported.

The report argued against the airports claims, accusing their analysis of using "selective data, containing inconsistencies, factual errors, and are misleading".