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


Air NZ calls for ACCC to be consistent

Media Release 21 November 2008

Air New Zealand calls for ACCC to be consistent

Air New Zealand is calling on the Australian Competition and Consumer Commission to demonstrate consistency when making a final ruling on its application for a Cooperation Agreement with Air Canada.

The Cooperation Agreement would involve the two airlines jointly promoting and selling direct flights between Sydney and Vancouver (operated by Air Canada) and Auckland and Vancouver (operated by Air New Zealand).

The Cooperation Agreement also provides for the airlines to pool and share revenue in relation to the direct flights.

Group General Manager International Airline Ed Sims says Air New Zealand is extremely surprised the ACCC has formed a preliminary view that the Cooperation Agreement is likely to substantially reduce competition for flights between Australia and Canada.

"As the ACCC noted, there are already four main carriers on the route. As evidenced around the world, wherever there are two or more carriers, competition is intense and consumers benefit through low fares and a choice of frequency not to mention a variety of product offerings. Therefore, we are struggling to understand how the ACCC has formed its preliminary view and will be making further submissions ahead of the final determination," Mr Sims says.

"A cornerstone of those submissions will be a call for consistency. Qantas has a relationship with South African Airways on the highly uncompetitive Johannesburg route and a codeshare with Japan Airlines, which is its only competitor for direct services to Japan. On top of that it also has an ACCC-backed long established agreement with British Airways."

Mr Sims says Air New Zealand is also concerned by the ACCC's view that the Cooperation Agreement is not needed to underpin the direct services, or to ensure the ongoing provision of direct services.

"The ACCC would seem to be ignoring the reality of the global economic meltdown and the fact that this year more than two dozen airlines around the globe have collapsed while those remaining take the knife to their businesses, including axing non-profitable and marginal services."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>


Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>


Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>


New Report: Waitākere Kauri - Look After It, Or Lose It

With no cure for kauri dieback disease and treatment options still being trialled, the Auckland region faces a very real threat – take urgent action in the Waitākere Ranges or risk losing kauri from our forests altogether. More>>