Menzies granted clearance to acquire Skystar

Menzies granted clearance to acquire Skystar
Issued 16 October 2013
Release No. 30

The Commerce Commission has cleared Menzies Aviation (New Zealand) Limited to acquire Skystar Airport Services NZ Pty Limited.

The proposed acquisition would result in overlap in the provision of ground handling services at Christchurch and Dunedin Airports.

The Commission is satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the markets for the provision of ground handling services for narrow- and wide-bodied aircraft at each airport in New Zealand.

“The merged firm would continue to face competition from various suppliers of airport ground handling services in New Zealand and Australia when the relevant contracts are next offered by airline customers,” said Commerce Commission Chairman Dr Mark Berry.

A public version of the written reasons for the decision will be available soon on the Commission’s Clearances Register.

Background
Menzies is part of the Menzies Aviation Group, which provides ground handling, cargo handling, and cargo forwarding services in 30 countries. In New Zealand, Menzies provides ground handling services (either itself or through a sub-contracted third party supplier) at Auckland, Wellington, Christchurch, Dunedin and Queenstown airports. 

Skystar provides ground handling services at eight airports in Australia and New Zealand. In New Zealand, Skystar’s activities are confined to providing ground handling services at Christchurch and Dunedin Airports for Jetstar’s narrow-bodied aircraft.

ENDS

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