Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Commission closes investigation

Media Release

Issued 31 March 2006/117

Commission closes investigation

The Commerce Commission has today closed its investigation into claims by Origin Pacific Airways Limited that Air New Zealand took advantage of its market power to restrict, prevent or deter competition on selected provincial air services markets.

On 1 September 2003 Origin Pacific announced new non-stop flights between Christchurch and Hamilton. Before that time there were no non-stop flights between the cities. On 9 September 2003 Air New Zealand announced its own new non-stop flights between Christchurch and Hamilton. Origin then cancelled its plans to operate the service as it considered it could not viably fly the route alongside Air New Zealand.

Origin Pacific alleged that Air New Zealand’s behaviour was an abuse of market power and therefore a breach of s36 of the Commerce Act. After extensive investigation, the Commission has concluded that, by introducing its own direct flights between Christchurch and Hamilton, Air New Zealand was exhibiting a competitive response to a rival in the marketplace. Air New Zealand’s behaviour is unlikely to have been materially different from what might have occurred in a competitive market.

Background

Section 36 of the Commerce Act 1986 prohibits persons who have a substantial degree of market power in a market from taking advantage of that position for various purposes, including preventing or deterring competitive conduct by others.

ENDS

Commission media releases can be viewed on its web site www.comcom.govt.nz

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news