The biggest airline in the world is launching direct flights between New Zealand and America.

American Airlines is launching daily return flights between Auckland and Los Angeles starting in June next year.

The flights, which will be code-shared with Qantas, will be on AA's new Boeing 787-8 Dreamliners, with seats kitted out with wifi and the latest touch-screens.

It'll open up more than 150 US destinations for kiwis, as well as 70 Australasian destinations for American travellers - all at prices promised to be competitive.

Air New Zealand has responded by offering flights for less than 500 dollars.

Qantas CEO Alan Joyce said they haven't even priced their flights yet, but are obviously already having an influence.

The flights are being welcomed by travel agents and airports both here and in the US, as well as Tourism New Zealand.