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

 


Airports association calls for action for fair prices

Airports association calls for Commerce Commission action to ensure fair prices on ‘monopoly routes’


New Zealand Airports Association (NZ Airports) has welcomed Air New Zealand’s commercial success, but says regions are right to question whether provincial routes are generating excessive profits.

Association chief executive Kevin Ward said the situation could be resolved by the Commerce Commission introducing an information disclosure regime for regional airlines with monopolies on routes.

“News of a third consecutive rise in Air New Zealand profits shows our national airline is consistently successful, which is good for New Zealand,” said Mr Ward.

“Making a profit is a good thing for the airline’s ongoing investment, innovation, reliability, and promotion of New Zealand, but very high airfares have a choking effect on regional economies, business connections, tourism and social links.

“There are big question marks around Air New Zealand’s monopoly domestic routes where there is potential for excessive profits, and no transparency or monitoring.”

Mr Ward said there is currently a lack of good information and analysis which would enable people to see for themselves if airfares to the regions are reasonable or not.

“It would be in the national interest to have transparency and disclosure on those domestic routes where there is no choice for air passengers,” he said.

“The Commerce Commission could be directed by the Government to include monopoly regional airlines in an information disclosure regime. That would be the best way to assure New Zealanders that Air New Zealand’s prices are fair.

“Quality standards and schedules could also be included to ensure the reasonable needs of each region are met.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news