John Key National Associate Transport Spokesperson

9 October 2002

New Zealand consumers shouldn't be "Sucked in by the Spin"

New Zealanders should be wary of any spin likely to be attached to a deal that would see Qantas buy a 25 percent stake in Air New Zealand as early as 29 October this year, says Nationals'Associate Transport spokesperson John Key.

"Consumers should let their instincts guide them. Annihilating your only domestic competitor in the aviation industry will increase prices for both passenger travel and freight, while eliminating frequency of flights.

"Once the honeymoon is over in this deal, it wont just be the food that's missing from domestic flights in New Zealand it will be services and value as well.

"Claims that Virgin Blue could take the place of Qantas here in the New Zealand market are farcical.

'If Qantas and Air New Zealand don't believe they can compete effectively with one another why would anyone think Virgin Blue will preserve healthy competitive pressures on a combined Qantas/Air New Zealand", says Mr Key.

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